chapter 10 review. review question 1 which of the depreciation methods writes off more depreciation...
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![Page 1: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/1.jpg)
Chapter 10 Review
![Page 2: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/2.jpg)
REVIEW QUESTION 1
• Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?
– Units of Production– Declining balance– Straight line– All of the above
![Page 3: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/3.jpg)
REVIEW QUESTION 1
• Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?
– Units of Production– Declining balance– Straight line– All of the above
![Page 4: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/4.jpg)
REVIEW QUESTION 2
• Which of the depreciation methods allocates an equal amount of depreciation to each year?
– Units of Production– Declining balance– Straight line– All of the above
![Page 5: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/5.jpg)
REVIEW QUESTION 2
• Which of the depreciation methods allocates an equal amount of depreciation to each year?
– Units of Production– Declining balance– Straight line– All of the above
![Page 6: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/6.jpg)
REVIEW QUESTION 3
• Which of the depreciation methods does NOT use a residual method in the first year?
– Units of Production– Declining balance– Straight line– All of the above
![Page 7: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/7.jpg)
REVIEW QUESTION 3
• Which of the depreciation methods does NOT use a residual method in the first year?
– Units of Production– Declining balance– Straight line– All of the above
![Page 8: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/8.jpg)
REVIEW QUESTION 4
• Which of the accounting methods is used to compute amortization?
– Units of Production– Declining balance– Straight line– All of the above
![Page 9: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/9.jpg)
REVIEW QUESTION 4
• Which of the accounting methods is used to compute amortization?
– Units of Production– Declining balance– Straight line– All of the above
![Page 10: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/10.jpg)
REVIEW QUESTION 5
• Which of the accounting methods is used to compute depletion?
– Units of Production– Declining balance– Straight line– All of the above
![Page 11: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/11.jpg)
REVIEW QUESTION 5
• Which of the accounting methods is used to compute depletion?
– Units of Production– Declining balance– Straight line– All of the above
![Page 12: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/12.jpg)
REVIEW QUESTION 5
• Which of the depreciation methods allocates a fixed dollar amount per unit of output by an asset?
– Units of Production– Declining balance– Straight line– All of the above
![Page 13: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/13.jpg)
REVIEW QUESTION 5
• Which of the depreciation methods allocates a fixed dollar amount per unit of output by an asset?
– Units of Production– Declining balance– Straight line– All of the above
![Page 14: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/14.jpg)
REVIEW QUESTION 6
• Which of the depreciation methods is used MOST by companies for their financial statements?
– Units of Production– Declining balance– Straight line– All of the above
![Page 15: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/15.jpg)
REVIEW QUESTION 6
• Which of the depreciation methods is used MOST by companies for their financial statements?
– Units of Production– Declining balance– Straight line– All of the above
![Page 16: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/16.jpg)
REVIEW QUESTION 7
• Which of the depreciation methods is calculated by multiplying the asset’s decreasing book value by a percent that is two times the straight-line rate?
– Units of Production– Declining balance– Straight line– All of the above
![Page 17: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/17.jpg)
REVIEW QUESTION 7
• Which of the depreciation methods is calculated by multiplying the asset’s decreasing book value by a percent that is two times the straight-line rate?
– Units of Production– Declining balance– Straight line– All of the above
![Page 18: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/18.jpg)
REVIEW QUESTION 8
• Which of the depreciation methods is preferable for tax purposes?
– Units of Production– Declining balance– Straight line– All of the above
![Page 19: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/19.jpg)
REVIEW QUESTION 8
• Which of the depreciation methods is preferable for tax purposes?
– Units of Production– Declining balance– Straight line– All of the above
![Page 20: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/20.jpg)
True or False
• The cost of fencing around a building is included in the cost of the building
![Page 21: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/21.jpg)
True or False
• The cost of fencing around a building is included in the cost of the building
FALSE
![Page 22: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/22.jpg)
True or False
• The cost of land includes the cost of removing unwanted buildings
![Page 23: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/23.jpg)
True or False
• The cost of land includes the cost of removing unwanted buildings
TRUE
![Page 24: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/24.jpg)
True or False
• Treating a capital expenditure as an expense causes an understatement of net income
![Page 25: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/25.jpg)
True or False
• Treating a capital expenditure as an expense causes an understatement of net income
TRUE
![Page 26: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/26.jpg)
True or False
• Estimated residual value is the expected cash value of an asset at the end of its useful life
![Page 27: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/27.jpg)
True or False
• Estimated residual value is the expected cash value of an asset at the end of its useful life
TRUE
![Page 28: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/28.jpg)
True or False
• A loss on the sale of a plant asset is recorded when the sales price exceeds the book value
![Page 29: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/29.jpg)
True or False
• A loss on the sale of a plant asset is recorded when the sales price exceeds the book value
FALSE
![Page 30: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/30.jpg)
True or False
• Tangible assets are assets with no physical form that have value because of the special rights they carry
![Page 31: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/31.jpg)
True or False
• Tangible assets are assets with no physical form that have value because of the special rights they carry
FALSE
![Page 32: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/32.jpg)
True or False
• Depletion expense is the portion of a natural resource’s cost used up in a particular period
![Page 33: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/33.jpg)
True or False
• Depletion expense is the portion of a natural resource’s cost used up in a particular period
TRUE
![Page 34: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/34.jpg)
True or False
• A patent is an exclusive right to reproduce and sell a book, musical composition, film, other work of art, or computer program, and must be amortized over the useful life of the patent.
![Page 35: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/35.jpg)
True or False
• A patent is an exclusive right to reproduce and sell a book, musical composition, film, other work of art, or computer program, and must be amortized over the useful life of the patent.
FALSE
![Page 36: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/36.jpg)
True or False
• If assets are junked before being fully depreciated, there is a loss equal to the book value of the assets.
![Page 37: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/37.jpg)
True or False
• If assets are junked before being fully depreciated, there is a loss equal to the book value of the assets.
TRUE
![Page 38: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/38.jpg)
True or False
• You capitalize all costs that provide future benefit
![Page 39: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/39.jpg)
True or False
• You capitalize all costs that provide future benefit
TRUE
![Page 40: Chapter 10 Review. REVIEW QUESTION 1 Which of the depreciation methods writes off more depreciation near the start of an asset’s than in later years?](https://reader036.vdocuments.us/reader036/viewer/2022062421/56649d8c5503460f94a735de/html5/thumbnails/40.jpg)
Other terms to look over
• Plant assets• Residual value• Amortization• Depletion• Tangible vs. intangible assets• Land vs. land improvements• Ordinary vs. extra ordinary repairs• Copyright, brand names, licenses, patents