Intermediate Accounting Chapter 10
Study online at https://quizlet.com/_j4p3q0
1. From a financial reporting perspective, property, plant, revenue-producing
and equipment and intangible assets exhibit the fol- long-lived
lowing characteristics
2. The purchase price and all costs to bring an asset to its capitalized
desired condition and location for use should be ______.
3. Which of the following items should be capitalized in freight to deliver the
the cost of equipment? equipment to its location
installation and testing of
equipment
Purchase price
insurance on equipment
during shipping
4. Sarah purchases land to be used for a new storage legal fees to secure title
facility. Which of the following items are capitalized in costs to remove an old
the cost of land? building
real estate agent commis-
sions
5. Long-term assets are typically classified in one of these property, plant, and
two categories: equipment
intangible assets
6. True or false: The initial cost of property, plant, and True
equipment includes the purchase price and all expen-
ditures necessary to bring the asset to its desired con-
dition and location for use.
7. Indicate which costs would be capitalized as part of the insurance during transit
cost of manufacturing equipment. set-up cost
freight-in
, Intermediate Accounting Chapter 10
Study online at https://quizlet.com/_j4p3q0
8. Larry purchases land to be used for a new corporate grading the land
headquarters. Which of the following items are capi- legal fees to secure title
talized in the cost of land? costs to remove an old
building
title insurance
9. Clarion purchases land and prepares it for use. Which cost of sidewalks
of the following items should be capitalized as land cost of lawn sprinkler sys-
improvements? tem
cost of driveways
10. The distinction between land and land improvements land has an indefinite life
is that:
11. Which of the following items should be capitalized in freight to deliver the
the cost of equipment? equipment to its location
installation and testing of
equipment
insurance on equipment
during shipping
Purchase price
12. Which of the following costs should be capitalized in remodeling building
the costs of acquiring a building? realtor commissions
legal fees to obtain title
13. Sarah purchases land to be used for a new storage costs to remove an old
facility. Which of the following items are capitalized in building
the cost of land? legal fees to secure title
real estate agent commis-
sions
Study online at https://quizlet.com/_j4p3q0
1. From a financial reporting perspective, property, plant, revenue-producing
and equipment and intangible assets exhibit the fol- long-lived
lowing characteristics
2. The purchase price and all costs to bring an asset to its capitalized
desired condition and location for use should be ______.
3. Which of the following items should be capitalized in freight to deliver the
the cost of equipment? equipment to its location
installation and testing of
equipment
Purchase price
insurance on equipment
during shipping
4. Sarah purchases land to be used for a new storage legal fees to secure title
facility. Which of the following items are capitalized in costs to remove an old
the cost of land? building
real estate agent commis-
sions
5. Long-term assets are typically classified in one of these property, plant, and
two categories: equipment
intangible assets
6. True or false: The initial cost of property, plant, and True
equipment includes the purchase price and all expen-
ditures necessary to bring the asset to its desired con-
dition and location for use.
7. Indicate which costs would be capitalized as part of the insurance during transit
cost of manufacturing equipment. set-up cost
freight-in
, Intermediate Accounting Chapter 10
Study online at https://quizlet.com/_j4p3q0
8. Larry purchases land to be used for a new corporate grading the land
headquarters. Which of the following items are capi- legal fees to secure title
talized in the cost of land? costs to remove an old
building
title insurance
9. Clarion purchases land and prepares it for use. Which cost of sidewalks
of the following items should be capitalized as land cost of lawn sprinkler sys-
improvements? tem
cost of driveways
10. The distinction between land and land improvements land has an indefinite life
is that:
11. Which of the following items should be capitalized in freight to deliver the
the cost of equipment? equipment to its location
installation and testing of
equipment
insurance on equipment
during shipping
Purchase price
12. Which of the following costs should be capitalized in remodeling building
the costs of acquiring a building? realtor commissions
legal fees to obtain title
13. Sarah purchases land to be used for a new storage costs to remove an old
facility. Which of the following items are capitalized in building
the cost of land? legal fees to secure title
real estate agent commis-
sions
