ch10 (1) 1 - ch10 Student 1 Property plant and equipment and intangible assets are long-term revenue producing assets True 2 Sales tax paid on equipment

ch10 (1) 1 - ch10 Student 1 Property plant and equipment...

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ch10 Student: ___________________________________________________________________________ 1.Property, plant, and equipment and intangible assets are long-term, revenue producing assets. True False 2.Sales tax paid on equipment acquired for use in the business is not capitalized. 3.Demolition costs to remove an old building from land purchased as a site for a new building are considered part of the cost of the new building. 4.The initial cost of property, plant, and equipment includes all the identifiable expenditures necessary to bring the asset to its desired condition and location for use. 5.A distinguishing characteristic of intangible assets is the degree of uncertainty about when or if they will provide future benefits. True False 6.Costs incurred after discovery of a natural resource but before production begins are reported as expenses of the period in which the expenditures are made. True False 7.The relative fair values are used to determine the valuation of individual assets acquired in a lump-sum purchase. True False 8.The fair value of the asset, debt or equity securities given in a noncash acquisition should determine the value of the consideration received. True False 9.Under current GAAP, fair value is used to measure the components of all nonmonetary exchanges. True False 10.The capitalization period for a self-constructed asset ends either when the asset is substantially complete and ready for use or when interest costs no longer are being incurred. True False

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