2/16/2020 Homework Week 4: Attempt review
Question 1
Correct
Mark 2.50 out of 2.50
Superior BBQ purchased a piece of equipment by paying $8,000 cash. They also incurred a shipping cost of $800 to get the equipment
to its factory and $400 tax. The fair value of this equipment is $10,000. For what amount should Superior BBQ record the equipment?
Select one or more:
a. 8,800
b. 10,000
c. 9,200
d. 8,000
The correct answer is: 9,200
Question 2
Correct
Mark 2.50 out of 2.50
The acquisition cost of a plant asset is equal to the cash paid for the asset’s and:
Select one or more:
a. The interest paid on any debt incurred to finance the asset’s purchase.
b. The reasonable and necessary costs incurred to prepare the asset for its intended use.
c. The market value of the asset.
d. The asset’s estimated salvage value.
The correct answer is: The reasonable and necessary costs incurred to prepare the asset for its intended use.
Question 3
Correct
Mark 2.50 out of 2.50
What are the factors we need to consider when calculating the depreciation expense of equipment?
Select one or more:
a. The useful life the equipment
b. The acquisition cost of the equipment
c. The residual value (salvage value) of the equipment after useful life
d. All the other three choices are correct
The correct answer is: All the other three choices are correct
This study source was downloaded by 100000824189183 from CourseHero.com on 04-17-2022 02:12:15 GMT -05:00
https://moodle.lsus.edu/mod/quiz/review.php?attempt=1180045&cmid=463820 1/9
https://www.coursehero.com/file/55418749/Homework-Week-4-Attempt-reviewpdf/
, 2/16/2020 Homework Week 4: Attempt review
Question 4
Correct
Mark 2.50 out of 2.50
Match the features to the depreciation method
Straight line method Depreciate the same amount every year
Declining-balance Depreciate more in earlier years and less in later years
Units of production Depreciation based on how much used (hours, mileage) the equipment
The correct answer is: Straight line method → Depreciate the same amount every year, Declining-balance → Depreciate more in earlier
years and less in later years, Units of production → Depreciation based on how much used (hours, mileage) the equipment
Question 5
Correct
Mark 2.50 out of 2.50
Depreciation in accounting is the process of allocating to expense the cost of an asset over its service life.
Select one:
True
False
The correct answer is 'True'.
Question 6
Correct
Mark 2.50 out of 2.50
The balance sheet reports the net value ( book value) of the equipment. The book value of the equipment is______________.
Select one or more:
a. The original cost of the asset less the depreciation cost of current year
b. The original cost of the asset less its accumulated depreciation
c. The original cost of the asset
d. The accumulated depreciation on the asset
The correct answer is: The original cost of the asset less its accumulated depreciation
This study source was downloaded by 100000824189183 from CourseHero.com on 04-17-2022 02:12:15 GMT -05:00
https://moodle.lsus.edu/mod/quiz/review.php?attempt=1180045&cmid=463820 2/9
https://www.coursehero.com/file/55418749/Homework-Week-4-Attempt-reviewpdf/
Question 1
Correct
Mark 2.50 out of 2.50
Superior BBQ purchased a piece of equipment by paying $8,000 cash. They also incurred a shipping cost of $800 to get the equipment
to its factory and $400 tax. The fair value of this equipment is $10,000. For what amount should Superior BBQ record the equipment?
Select one or more:
a. 8,800
b. 10,000
c. 9,200
d. 8,000
The correct answer is: 9,200
Question 2
Correct
Mark 2.50 out of 2.50
The acquisition cost of a plant asset is equal to the cash paid for the asset’s and:
Select one or more:
a. The interest paid on any debt incurred to finance the asset’s purchase.
b. The reasonable and necessary costs incurred to prepare the asset for its intended use.
c. The market value of the asset.
d. The asset’s estimated salvage value.
The correct answer is: The reasonable and necessary costs incurred to prepare the asset for its intended use.
Question 3
Correct
Mark 2.50 out of 2.50
What are the factors we need to consider when calculating the depreciation expense of equipment?
Select one or more:
a. The useful life the equipment
b. The acquisition cost of the equipment
c. The residual value (salvage value) of the equipment after useful life
d. All the other three choices are correct
The correct answer is: All the other three choices are correct
This study source was downloaded by 100000824189183 from CourseHero.com on 04-17-2022 02:12:15 GMT -05:00
https://moodle.lsus.edu/mod/quiz/review.php?attempt=1180045&cmid=463820 1/9
https://www.coursehero.com/file/55418749/Homework-Week-4-Attempt-reviewpdf/
, 2/16/2020 Homework Week 4: Attempt review
Question 4
Correct
Mark 2.50 out of 2.50
Match the features to the depreciation method
Straight line method Depreciate the same amount every year
Declining-balance Depreciate more in earlier years and less in later years
Units of production Depreciation based on how much used (hours, mileage) the equipment
The correct answer is: Straight line method → Depreciate the same amount every year, Declining-balance → Depreciate more in earlier
years and less in later years, Units of production → Depreciation based on how much used (hours, mileage) the equipment
Question 5
Correct
Mark 2.50 out of 2.50
Depreciation in accounting is the process of allocating to expense the cost of an asset over its service life.
Select one:
True
False
The correct answer is 'True'.
Question 6
Correct
Mark 2.50 out of 2.50
The balance sheet reports the net value ( book value) of the equipment. The book value of the equipment is______________.
Select one or more:
a. The original cost of the asset less the depreciation cost of current year
b. The original cost of the asset less its accumulated depreciation
c. The original cost of the asset
d. The accumulated depreciation on the asset
The correct answer is: The original cost of the asset less its accumulated depreciation
This study source was downloaded by 100000824189183 from CourseHero.com on 04-17-2022 02:12:15 GMT -05:00
https://moodle.lsus.edu/mod/quiz/review.php?attempt=1180045&cmid=463820 2/9
https://www.coursehero.com/file/55418749/Homework-Week-4-Attempt-reviewpdf/
