ACCT 212 EXAM QUESTIONS AND
ANSWERS LATEST 2024-2025
Fences and parking lots are reported on the balance sheet as
a. current assets.
b. land improvements.
c. land.
d. property and equipment.
b. Land improvement
Which of the following is not a capital expenditure?
a. Repairs that maintain an asset in operating condition
b. An addition
c. A betterment
d. A replacement
a. Repairs that maintain an asset in operating condition
Wilson Co. purchased land as a factory site for $1,350,000. Wilson paid $120,000
to tear down two buildings on the land. Salvage was sold for $8,100. Legal fees of
$5,220 were paid for title investigation and making the purchase. Architect's fees
were $46,800. Title insurance cost $3,600, and liability insurance during
construction cost $3,900. Excavation cost $15,660. The contractor was paid
$4,200,000. An assessment made by the city for pavement was $9,600. Interest
costs during construction were $255,000.
The cost of the building that should be recorded by Wilson Co. is
a. $4,205,700.
b. $4,207,260.
, c. $4,219,800.
d. $4,521,360.
D. 4,521,360
. Glen Inc. and Armstrong Co. have an exchange with no commercial substance.
The asset given up by Glen Inc. has a book value of $72,000 and a fair value of
$90,000. The asset given up by Armstrong Co. has a book value of $120,000 and a
fair value of $114,000. Boot of $24,000 is received by Armstrong Co.
What amount should Armstrong Co. record for the asset received?
a. $90,000
b. $96,000
c. $114,000
d. $120,000
a. 90,000
Which of the following principles best describes the conceptual rationale for the
methods of matching depreciation expense with revenues?
a. Associating cause and effect
b. Systematic and rational allocation
c. Immediate recognition
d. Partial recognition
b. Systematic and rational allocation
. If an industrial firm uses the units-of-production method for computing
depreciation on its only plant asset, factory machinery, the credit to accumulated
depreciation from period to period during the life of the firm will
a. be constant.
b. vary with unit sales.
c. vary with sales revenue.
d. vary with production.
d. vary with production
In January, 2020, Yager Corporation purchased a mineral mine for $5,100,000 with
removable ore estimated by geological surveys at 2,000,000 tons. The property
