Financial Accounting Exam #3 Questions With Correct Answers
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Course
Financial Accounting
Institution
Financial Accounting
Financial Accounting Exam #3 Questions
With Correct Answers
A long-term asset is recorded at the: - answerCost of the asset plus all costs necessary to the
asset ready for use.
The Open Grill incurred the following costs in acquiring a new piece of land: What is the total
recorded cost of the ...
An exclusive 20-year right to manufacture a product or to use a process is a: - answer✔Patent.
Which of the following is properly recorded as an intangible asset? - answer✔A purchased
patent
Which of the following is not recorded as an intangible asset in the balance sheet? -
answer✔Research and development.
Which of the following expenditures should be recorded as an expense? - answer✔Ordinary
repairs and maintenance.
Which of the following expenditures should be recorded as an asset? - answer✔An addition
which increases future benefit
Which of the following expenditures should be capitalized? - answer✔An improvement to a
tangible asset.
Which of the following depreciation methods typically results in the highest depreciation
expense during the first year of an asset's life? - answer✔Double declining balance method.
Which of the following correctly describes the nature of depreciation? - answer✔Depreciation
represents the allocation of the cost of property, plant, and equipment over its service life.
Accumulated depreciation is: - answer✔A contra-asset.
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