Chapter 10 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Chapter 10 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

 

Complete Chapter Questions With Answers

 

Sample Questions Are Posted Below

 

1. Long-lived assets that are intangible in nature, used in the operations of the business and not held for sale in the ordinary course of business are called fixed assets.
   1. True
   2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.10-01 – 10-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.13 – Long-term Assets Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

2. The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs to get the asset in place and ready for use.
   1. True
   2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.10-01 – 10-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.13 – Long-term Assets Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

3. When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account.
   1. True
   2. False

 

ANSWER:                                  False

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.10-01 – 10-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.13 – Long-term Assets Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

 

 

 

4. Land acquired as a speculation is reported under Investments on the balance sheet.
   1. True
   2. False

 

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.10-01 – 10-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.13 – Long-term Assets Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

5. Standby equipment held for use in the event of a breakdown of regular equipment is reported as property, plant, and equipment on the balance sheet.
   1. True
   2. False

 

ANSWER:                                  True

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.10-01 – 10-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.13 – Long-term Assets Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic