Quiz Ch 07 – Discovery of WorldCom’s Fraudulent Scheme
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Who discovered WorldCom’s fraudulent scheme of capitalizing telephone line costs instead of expensing them?
Who discovered WorldCom’s fraudulent scheme of capitalizing telephone line costs instead of expensing them?
What is the calculation for the gain or loss on the sale of equipment for Excalibur Company, which sells equipment for $20,000 cash?
What happens to a plant asset when it is fully depreciated?
What is the formula for calculating the gain or loss on the exchange of plant assets?
Which statement about cost expensing and capitalization is incorrect?
What is the impact on expenses and net income in the year of the error if a company capitalizes a cost that should have been expensed?
What information is NOT required when recording a nonmonetary exchange of two plant assets?
When a company exchanges an old machine for a new machine and pays cash, resulting in a gain on exchange, which accounts will be debited in the journal entry recorded by the owner of the old machine?
What is the appropriate journal entry when equipment with a historical cost of $100,000 and accumulated depreciation of $100,000 is junked?
What is the appropriate journal entry when equipment with a historical cost of $70,000 and accumulated depreciation of $15,000 is junked and no cash is received upon disposal?