ACCT 305 Week 4 Midterm

ACCT 305 Week 4 Midterm

Author: Harvey Maxwell

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1. Property, plant, and equipment and intangible assets are (Points : 9)
2. (TCO 3) Our company exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming the exchange lacks commercial substance, which amount is correct? (Points : 9)
3. (TCO 2) The exclusive right to benefit from a creative work, such as a film, is a (Points : 9)
4. (TCO 4) Assuming an asset is used evenly over a 4-year service life, which method of depreciation will always result in the largest amount of depreciation in the first year? (Points : 9)
5. (TCO 4) On September 30, 2013, our company purchased a machine for $100,000. The estimated service life is 10 years, with a $10,000 residual value. Our company records partial-year depreciation based on the number of months in service. Depreciation for 2014, using double-declining balance, would be (Points : 9)
6. (TCO 4) A change in the estimated useful life and residual value of machinery in the current year is handled as (Points : 9)
7. (TCO 5) Fair value and appreciation of the investee are not as relevant for investments in which of the following categories? (Points : 9)
8. (TCO 5) Consolidated financial statements are prepared when one company has (Points : 9)
9. (TCO 4) Interest is not capitalized for (Points : 9)
10. (TCO 2) Software development costs are capitalized if they are incurred (Points : 9)
11. (TCO 4) The factors that need to be determined to compute depreciation are an asset's (Points : 9)
12. (TCO 5) Which of the following types of securities only includes debt securities? (Points : 9)
13. (TCO 1) The capitalized cost of equipment excludes (Points : 9)
14. (TCO 3) The basic principle used to value an asset acquired in a nonmonetary exchange is to value it at (Points : 9)
15. (TCO 2) Research and development (R & D) costs (Points : 9)
16. (TCO 4) The depreciable base for an asset is (Points : 10)
17. (TCO 5) Securities that are purchased with the intent of selling them in the near future to take advantage of short-term price changes are classified as (Points : 10)
18. (TCO 5) Accumulated Other Comprehensive Income in the shareholders' equity section of the balance sheet reflects changes in the fair value of securities for which type of securities? (Points : 10)
19. (TCO 5) The equity method of accounting for investments in voting common stock is appropriate when (Points : 10)

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