ACCT305 Week 4 Midterm Exam 2016 version
1.Property, plant, and equipment and intangible assets are
long-term revenue-producing assets.
created by the normal operation of the business and include accounts receivable.
all assets except cash and cash equivalents.
current and long-term assets used in the production of either goods or services.
2.(TCO 3) Our company exchanged land and cash of $5,000 for similar land. The book value
and the fair value of the land were $90,000 and $100,000, respectively. Assuming the exchange
lacks commercial substance, which amount is correct?
Debit Land-old $90,000
Credit Land-old $90,000
Debit Land-old $95,000
Credit Land-old $95,000
3.(TCO 2) The exclusive right to benefit from a creative work, such as a film, is a
patent.
copyright.
trademark.
franchise.
4.(TCO 4) Assuming an asset is used evenly over a 4-year service life, which method of
depreciation will always result in the largest amount of depreciation in the first year?
Straight-line
1.Property, plant, and equipment and intangible assets are
long-term revenue-producing assets.
created by the normal operation of the business and include accounts receivable.
all assets except cash and cash equivalents.
current and long-term assets used in the production of either goods or services.
2.(TCO 3) Our company exchanged land and cash of $5,000 for similar land. The book value
and the fair value of the land were $90,000 and $100,000, respectively. Assuming the exchange
lacks commercial substance, which amount is correct?
Debit Land-old $90,000
Credit Land-old $90,000
Debit Land-old $95,000
Credit Land-old $95,000
3.(TCO 2) The exclusive right to benefit from a creative work, such as a film, is a
patent.
copyright.
trademark.
franchise.
4.(TCO 4) Assuming an asset is used evenly over a 4-year service life, which method of
depreciation will always result in the largest amount of depreciation in the first year?
Straight-line
