Quiz – Expenditure
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Replacement of a component increased the productive capacity from 12 units per hour to 18 units per hour. The expenditure should thus be debited to:
Replacement of a component increased the productive capacity from 12 units per hour to 18 units per hour. The expenditure should thus be debited to:
Intangible assets which are considered to have an indefinite useful life:
Which refers to process of allocating cost of intangible assets used over future periods of use?
The costs to defend intangible right such as a patent should be capitalized, regardless of whether the defense is successful or not.
There are 3 factors in the cost allocation of a depreciable asset. These are service life, allocation base, and allocation method. True or false?
A company must consistently use the same method of depreciation for the upcoming fixed asset acquisitions if it has already selected a method for the existing ones. True or false?
What is the term used to describe the process of allocating the cost of natural resources over their useful life
Which of the following is the primary reason why an activity-based method is frequently employed to allocate the cost of a natural resource over its useful life?
When is the cost of natural resources expensed in accounting?
How are natural resources that have been harvested but not yet sold classified in accounting?