Quiz Ch 07 – Identifying Obsolete Assets
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
What is the term used to describe an asset that can be replaced by a more efficient one?
What is the term used to describe an asset that can be replaced by a more efficient one?
What is the term for the exclusive right to produce and sell an invention, such as a smartphone, among the options?
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 is the impact of treating a capital expenditure as an immediate expense on assets and stockholders’ equity in the year of the error?
What is the impairment test used for long-term plant assets?
What information is NOT required when recording a nonmonetary exchange of two plant assets?
What is the appropriate journal entry for recording an addition to an office building?
What is the correct journal entry to record the disposal of a machine purchased for $700,000 with accumulated depreciation of $120,000 when the machine is junked?
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?