FBLA Accounting 1 Test Questions and Answers with Complete Solutions

FBLA Accounting 1 Questions and Answers 100% Correct Return on investment The ration of the money earned on investment relative to the amount of the investment. Real property Land and anything attached to the land. Personal property All property not classified as real property. Assessed value The value of an asset determined by tax authorities for the purpose of calculating taxes. Plant asset record An accounting form on which a business records information about each plant asset. Gain An increase in equity resulting from activity other than selling goods or services. Gain on plant assets An increase in equity that results when a plant asset is sold for more than book value. Loss A decrease in equity resulting from activity other than selling goods or services. Loss on plant assets The decrease in equity that results when a plant asset is sold for less than book value. Accelerated depreciation Any method of depreciation which records greater depreciation expense in the early years and less depreciation expense in the later years. Declining-balance method of depreciation A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation. Double-declining balance method of depreciation A declining-balance rate that is two times the straight-line rate. Intangible asset An asset that does not have physical substance. Amortization The spreading of the cost of an intangible asset over its useful life. real property land and anything attached to the land personal property all property not classified as real property assessed value The value of an asset determined by tax authorities for the purpose of calculating taxes plant asset record An accounting form on which a business records information about each plant asset.