coal oil and timber are a amortized b depleted c depreciated d expensed 496585

Coal, oil, and timber are:

a. amortized.

b. depleted.

c. depreciated.

d. expensed.

Assets that cannot be seen, touched, or held are called:

a. intangible assets.

b. natural resources.

c. plant assets.

d. tangible assets.

Which of the following would be considered part of land improvements?

a. Removal of unwanted building on the land

b. Title transfer fees

c. Paving of the parking lot

d. Surveying fees

If an asset produces more revenue in its early years, the depreciation method best suited for this asset would be the:

a. expense method.

b. units-of-production method.

c. double-declining balance method.

d. straight-line method.

A company purchased a van at a cost of $42,000 and expects its salvage value to be $6,000 after 120,000 miles of service. Using the units-of-production method, what is the first year s depreciation if the van is driven 24,000 miles?

a. $ 1,200

b. $ 4,200

c. $ 7,200

d. $12,000

Which accounting principal dictates whether the cost of a repair should be expensed?

a. Conservatism

b. Entity

c. Objectivity

d. Matching

If an asset is being sold or exchanged, the gain or loss is always computed by comparing the:

a. market value and book value.

b. market value and salvage value.

c. book value and salvage value.

d. market value and cost.

Research and development costs (R&D) are generally:

a. expensed and become part of the income statement.

b. listed as other intangibles on the balance sheet.

c. listed as current assets on the balance sheet.

d. listed as long-term assets on the balance sheet.

Cost divided by the total amount of the natural resource to be removed yields:

a. depletion expense for the period.

b. depletion rate per unit for the period.

c. accumulated rate for the period.

d. depreciation rate per unit for the period.

Securities that are actively managed in order to maximize profit as a result of short-term changes in price are:

a. trading securities.

b. available-for sale securities.

c. held-to-maturity securities.

d. trading and held-to-maturity securities