,TESTBANK FOR Accounting Principles 10e Canadian
Volume 2 Weygandt
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Accounting Principles, 10Ce (Weygandt)
Chapter 9 Long-Lived Assets
9.1 True-False/Multiple Choice
1) All long-lived assets must be depreciated for accounting purposes.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
2) All long-lived assets that are included in property, plant, and equipment must be used in the
operations of the business.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
3) If long-lived assets are intended for sale, they are included in property, plant, and equipment.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
4) If an item of property, plant, and equipment is recognized as an asset, it is probable that the
company will NOT receive economic benefits from the item.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
1
,5) Any non-refundable taxes incurred on the acquisition of an asset would be expensed at the
time of acquisition.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
6) The expenditures necessary to bring the asset to the location and condition necessary to make
it ready for its intended use would be included in the cost of the asset.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
7) Costs that benefit future periods are included in a long-lived asset account, and are called
operating expenses.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
8) If insurance is incurred transporting the asset to its final position, this insurance will be added
to the cost of the asset.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
2
,9) Subsequent to the acquisition of an asset, insurance costs would be added to the cost of the
asset.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
10) If paid by the purchaser, freight charges and insurance during transit are included in the cost
of equipment.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
11) An architect's fee for the plans for a new building would be included in the cost of the land
improvements.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
12) A basket purchase of long-lived assets requires that the fair values be assigned based on the
cost of each asset.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
3
,13) The cost of land improvements is NOT depreciated because land improvements typically do
NOT decline in value.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
14) Under IFRS, companies have two models they can choose between to account for their
property, plant, and equipment: the cost model or the revaluation model.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
15) Most Canadian companies reporting under IFRS do NOT use the revaluation method when
accounting for their long-lived assets.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
16) Land improvements decline in service potential with time.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
17) Depreciation is the systematic allocation of the cost of a long-lived asset, such as property,
plant, and equipment, over the asset's physical life.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
4
,18) An asset's cost is allocated to expense over the asset's useful life because the asset is used to
help generate revenue over that period of time.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
19) Assets are depreciated over their useful lives even if the use of the asset is NOT directly
related to earning profit.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
20) Depreciation is a process of cost allocation.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
21) Residual value is NOT depreciated since the amount is expected to be recovered at the end of
the asset's useful life.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
22) Recording depreciation on long-lived assets affects the balance sheet and the income
statement.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
5
,23) The units-of-production method of depreciation will result in the highest cash flow for the
company.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
24) Subject to acquisition, all costs that relate to that asset are classified as operating expenses.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
25) The Accumulated Depreciation account represents a cash fund available to replace long-lived
assets.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
26) In calculating depreciation, both the long-lived asset's cost and useful life are based on
estimates.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
27) Under the double diminishing-balance method, the depreciation rate used each year remains
constant.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
6
,28) Using the units-of-production method of depreciating factory equipment will generally result
in more depreciation expense being recorded over the life of the asset than if the straight-line
method had been used.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
29) Straight-line depreciation will result in a higher profit than the double diminishing-balance
method in the early years of an asset's life.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
30) The Canada Revenue Agency does NOT require the taxpayer to use the same depreciation
method on the tax return that is used in preparing financial statements.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
31) A company using the diminishing-balance method of depreciation will have higher profit in
the early years of the asset.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
7
, 32) The amount of an asset's residual value does NOT affect the calculation of depreciation in
the units-of-production method.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
33) In the straight-line method, the higher the residual value the greater the profit.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
34) The diminishing-balance method will yield a higher cost of goods sold.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
35) In the diminishing-balance method, the rate of depreciation decreases each year.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
36) In the diminishing-balance method, the depreciation expense on an asset will decrease each
year.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
8
Volume 2 Weygandt
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Accounting Principles, 10Ce (Weygandt)
Chapter 9 Long-Lived Assets
9.1 True-False/Multiple Choice
1) All long-lived assets must be depreciated for accounting purposes.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
2) All long-lived assets that are included in property, plant, and equipment must be used in the
operations of the business.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
3) If long-lived assets are intended for sale, they are included in property, plant, and equipment.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
4) If an item of property, plant, and equipment is recognized as an asset, it is probable that the
company will NOT receive economic benefits from the item.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
1
,5) Any non-refundable taxes incurred on the acquisition of an asset would be expensed at the
time of acquisition.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
6) The expenditures necessary to bring the asset to the location and condition necessary to make
it ready for its intended use would be included in the cost of the asset.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
7) Costs that benefit future periods are included in a long-lived asset account, and are called
operating expenses.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
8) If insurance is incurred transporting the asset to its final position, this insurance will be added
to the cost of the asset.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
2
,9) Subsequent to the acquisition of an asset, insurance costs would be added to the cost of the
asset.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
10) If paid by the purchaser, freight charges and insurance during transit are included in the cost
of equipment.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
11) An architect's fee for the plans for a new building would be included in the cost of the land
improvements.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
12) A basket purchase of long-lived assets requires that the fair values be assigned based on the
cost of each asset.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
3
,13) The cost of land improvements is NOT depreciated because land improvements typically do
NOT decline in value.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Calculate the cost of property, plant, and equipment.
Section Reference: Property, Plant, and Equipment
CPA: Financial Reporting
AACSB: Analytic
14) Under IFRS, companies have two models they can choose between to account for their
property, plant, and equipment: the cost model or the revaluation model.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
15) Most Canadian companies reporting under IFRS do NOT use the revaluation method when
accounting for their long-lived assets.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
16) Land improvements decline in service potential with time.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
17) Depreciation is the systematic allocation of the cost of a long-lived asset, such as property,
plant, and equipment, over the asset's physical life.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
4
,18) An asset's cost is allocated to expense over the asset's useful life because the asset is used to
help generate revenue over that period of time.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
19) Assets are depreciated over their useful lives even if the use of the asset is NOT directly
related to earning profit.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
20) Depreciation is a process of cost allocation.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
21) Residual value is NOT depreciated since the amount is expected to be recovered at the end of
the asset's useful life.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
22) Recording depreciation on long-lived assets affects the balance sheet and the income
statement.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
5
,23) The units-of-production method of depreciation will result in the highest cash flow for the
company.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
24) Subject to acquisition, all costs that relate to that asset are classified as operating expenses.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
25) The Accumulated Depreciation account represents a cash fund available to replace long-lived
assets.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
26) In calculating depreciation, both the long-lived asset's cost and useful life are based on
estimates.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
27) Under the double diminishing-balance method, the depreciation rate used each year remains
constant.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
6
,28) Using the units-of-production method of depreciating factory equipment will generally result
in more depreciation expense being recorded over the life of the asset than if the straight-line
method had been used.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
29) Straight-line depreciation will result in a higher profit than the double diminishing-balance
method in the early years of an asset's life.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
30) The Canada Revenue Agency does NOT require the taxpayer to use the same depreciation
method on the tax return that is used in preparing financial statements.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
31) A company using the diminishing-balance method of depreciation will have higher profit in
the early years of the asset.
Answer: FALSE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
7
, 32) The amount of an asset's residual value does NOT affect the calculation of depreciation in
the units-of-production method.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
33) In the straight-line method, the higher the residual value the greater the profit.
Answer: TRUE
Diff: 1
Bloomcode: Comprehension
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
34) The diminishing-balance method will yield a higher cost of goods sold.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
35) In the diminishing-balance method, the rate of depreciation decreases each year.
Answer: FALSE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
36) In the diminishing-balance method, the depreciation expense on an asset will decrease each
year.
Answer: TRUE
Diff: 1
Bloomcode: Knowledge
Learning Objective: Apply depreciation methods to property, plant, and equipment.
Section Reference: Depreciation
CPA: Financial Reporting
AACSB: Analytic
8
