Chương 8: TSCĐ - Tăng và giảm Flashcards
1. Property, plant, and equipment and intangible assets are long-term, revenue producing assets
TRUE
FALSE
TRUE
2. Non current assets are the assets that will be converted into cash or consumed within twelve months or the operating cycle, if that is longer than one year.
TRUE
FALSE
FALSE
3. The initial cost of property, plant, and equipment includes all the identifible expenditures necessary to bring the asset to its desired condition and location for use.
TRUE
FALSE
TRUE
4. Donated assets are recorded at:
Zero (memo entry only)
Fair value
The donee’s stated value
The donor’s book value
Fair value
5. Tangible fixed assets exclude:
Patent
Vans
Machines
Buildings
Patent
6. Property, plant, and equipment, investment property and intangible assets are:
Created by the normal operation of the business and include accounts receivable.
Long-term revenue-producing assets.
Current and long-term assets used in the production of either goods or services.
All assets except cash and cash equivalents.
Long-term revenue-producing assets.
7. Under VAS, development expenditures are:
Expensed in the period incurred.
Expensed in the period they are determined to be unsuccessful.
Capitalized if certain criteria are met.
None of the above is correct.
Capitalized if certain criteria are met.
8. The cost of repairing tangible fixed assets for sale, knowing that these assets were previously used for business activities, is recorded into the account:
811
211
642
627
811
9. When selling fixed assets funded by long-term loans, the remaining value of fixed assets will be subtracted from the original loans.
TRUE
FALSE
FALSE
10. The fixed-assets turnover ratio provides:
The rate of replacement of fixed assets.
The rate of decline in assets lives.
The amount of sales generated per dollar of fixed assets.
The decline in book value of fixed assets compared to capital expenditures.
The amount of sales generated per dollar of fixed assets.
11. On the Statement of financial position, section “Fixed assets” excludes:
Finance lease assets
Inventories
Tangible assets
Intangible assets
Inventories
