Question 1

Miss Hap,the company bookkeeper,recorded the annual repair costs on the company's machinery as an increase to the Machinery account.As a result,which of the following statements correctly describes this situation?

Accepted Answer

A)   Assets will be overstated.
B)   Stockholders' equity will be understated.
C)   Expenses will be overstated.
D)   Liabilities will be overstated.E) C) and D)
F) None of the above

Question 2

Extraordinary repairs,replacements,and additions are added to the appropriate asset accounts rather than being recorded as expenses.

Accepted Answer

A) True 
 B)False

Question 3

Sony,Inc.spent $1,000,000 of development cost for commercially feasible prototypes.If Sony follows IFRS not GAAP,then the $1,000,000 would:

Accepted Answer

A)   be recorded as an asset.
B)   be recorded as an expense.
C)   be recorded as revenue.
D)   not be recorded.E) B) and D)
F) A) and B)

Question 4

Depreciation and impairment are different in that:

Accepted Answer

A)   only depreciation results in a decrease in net income.
B)   only impairment represents the decline in the current.
C)   value of the related asset.
D)   only impairment result in a decrease to total assets.E) A) and D)
F) B) and C)

Question 5

Long-lived assets found on a company's balance sheet may include some assets that have no physical substance.

Accepted Answer

A) True 
 B)False

Question 6

If net sales revenue rises 5% while the average book value of fixed assets falls 5%,the:

Accepted Answer

A)   fixed asset turnover ratio will rise.
B)   fixed asset turnover ratio will fall.
C)   fixed asset turnover ratio will stay the same.
D)   impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown.E) A) and C)
F) A) and D)

Exam 9: Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Depreciation and impairment are different in that:

Correct Answer
verified

Sony,Inc.spent $1,000,000 of development cost for commercially feasible prototypes.If Sony follows IFRS not GAAP,then the $1,000,000 would:

Correct Answer
verified

Miss Hap,the company bookkeeper,recorded the annual repair costs on the company's machinery as an increase to the Machinery account.As a result,which of the following statements correctly describes this situation?

Correct Answer
verified

Long-lived assets found on a company's balance sheet may include some assets that have no physical substance.

Correct Answer
verified

Extraordinary repairs,replacements,and additions are added to the appropriate asset accounts rather than being recorded as expenses.

Correct Answer
verified

If net sales revenue rises 5% while the average book value of fixed assets falls 5%,the:

Correct Answer
verified

Exam 9: Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Depreciation and impairment are different in that:

Correct AnswerverifiedShow Answer

Sony,Inc.spent $1,000,000 of development cost for commercially feasible prototypes.If Sony follows IFRS not GAAP,then the $1,000,000 would:

Correct AnswerverifiedShow Answer

Miss Hap,the company bookkeeper,recorded the annual repair costs on the company's machinery as an increase to the Machinery account.As a result,which of the following statements correctly describes this situation?

Correct AnswerverifiedShow Answer

Long-lived assets found on a company's balance sheet may include some assets that have no physical substance.

Correct AnswerverifiedShow Answer

Extraordinary repairs,replacements,and additions are added to the appropriate asset accounts rather than being recorded as expenses.

Correct AnswerverifiedShow Answer

If net sales revenue rises 5% while the average book value of fixed assets falls 5%,the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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