All of the Following are Considered Fixed Assets Except

1. All of the following are considered fixed assets EXCEPT 1. 2. 3. 4. building. truck. land. accounts receivable. 2. If a purchased item is long-lived but not used in normal operations, the asset is classified and recorded as a(n) 1. fixed asset. 2. investment. 3. expense. 4. contra asset. 1. All of the following fixed assets are depreciated EXCEPT 1. building. 2. truck. 3. land. 4. equipment. 2. The difference between a fixed asset's initial cost and residual value is known as its 1. depreciable cost. 2. book value. 3. accumulated depreciation. 4. net revenue. 3. Which of the depreciation methods is called an accelerated depreciation method? 1. 2. 3. 4. Straight-line method Double-declining-balance method Units-of-activity method Square-feet method. 4. The journal entry to record costs related to extraordinary repairs would include a __________ to __________. 1. credit; Accumulated Depreciation 2. debit; Accumulated Depreciation 3. debit; Cash 4. credit; the respective asset account 1. Assume that equipment acquired at a cost of $10,000 is fully depreciated. On June 30, the equipment is discarded. The entry to record the discard would be to debit __________ and credit __________. 1. 2. 3. 4. Equipment; Accumulated Depreciation—Equipment Accumulated Depreciation—Equipment; Equipment Equipment; Depreciation Expense—Equipment Accumulated Depreciation—Equipment; Depreciation Expense—Equipment 2. The entry to record the sale of equipment at book value would include a __________ to __________. 1. debit; Loss on Sale of Equipment 2. credit; Cash 3. debit; Accumulated Depreciation 4. credit; Accumulated Depreciation 1. Which of the following is NOT a characteristic of natural resources? 1. 2. 3. 4. Removed for sale Exist physically Naturally occurring Removed and sold over more than one year 2. The journal entry to record depletion would include a __________ to __________. 1. debit; Depletion Expense 2. credit; Depletion Expense 3. debit; Accumulated Depreciation 4. credit; Natural Resource Expense 1. The entry to record the amortization of a patent would include a debit to __________ and a credit to __________. 1. Amortization Expense; Patents 2. Amortization Expense; Accumulated Amortization 3. Patents; Accumulated Amortization 4. Patents Expense; Accumulated Amortization 2. The exclusive right to publish and sell a literary, artistic, or musical composition is granted by a 1. patent. 2. trademark. 3. copyright. 4. franchise. 1. Cost less accumulated depreciation equals 1. depreciable cost. 2. book value. 3. residual value. 4. accumulated value. 2. Accumulated depreciation would be shown on which financial statement? 1. Balance sheet 2. Income statement 3. Statement of cash flows 4. Statement stockholders' equity 1. The fixed asset turnover ratio is computed as __________ divided by __________. 1. 2. 3. 4. sales; average book value of fixed assets net income; average book value of fixed assets sales; book value of fixed assets average book value of fixed assets; sales 2. Financial statement data for the year ending December 31 for Navajo Company follow: Sales $2,550,000 Net income 1,258,000 Fixed assets (net): Beginning of year 800,000 End of year 985,000 The fixed asset turnover ratio for Navajo Company on December 31 would be 1. 2.9. 2. 2.6. 3. 1.4. 4. 1.9. 1. When a seller allows a buyer an amount for old equipment traded in for new equipment having a similar use, this amount is called 1. 2. 3. 4. boot. the trade-in allowance. commercial substance. net book value. 2. The entry to record a gain on an exchange of similar assets would include a __________ to __________. 1. 2. 3. 4. debit; Cash debit; Gain on Exchange of Equipment credit; Gain on Exchange of Equipment credit; Accumulated Depreciation—Equipment