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Which of the following would not be classified as property, plant and  equipment on a balance sheet?  A.  Land being held for resale. B.  Equipment used in the manufacturing  process.  C.  A building used as corporate headquarters. D.  A natural  resource being mined.  Land being held for resale would be reported on a balance sheet as either  an investment or a current asset.  AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting Bloom's: Remember Difficulty:  Medium Learning Objective: 08-01 Define; classify; and explain the nature of long-lived productive assets and  interpret the fixed asset turnover ratio. Libby - Chapter 08 #32 Topic Area: Acquisition And Maintenance Of  Plant And Equipment  33. Which of the following accounts would not be considered a tangible asset?  physical substance, whereas intangible assets lack physical substance.  AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting Bloom's: Remember Difficulty:  Easy Learning Objective: 08-01 Define; classify; and explain the nature of long-lived productive assets and  interpret the fixed asset turnover ratio. Libby - Chapter 08 #33 Topic Area: Acquisition And Maintenance Of  Plant And Equipment  34. Which of the following accounts would not be considered an intangible  asset?  Trademarks Tangible assets have physical substance, whereas intangible  assets lack physical substance. Research and development costs are  expensed as incurred.  AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN:  Reporting Bloom's: Remember Difficulty: Easy Learning Objective: 08-01 Define; classify; and explain the nature of long-lived productive assets and interpret the fixed asset turnover ratio. Libby - Chapter 08 #34 Topic Area:  Acquisition And Maintenance Of Plant And Equipment        35. Which of the following transactions would not increase the fixed asset  turnover ratio?  inventory for cash. for a loss. 
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Fixed asset turnover is calculated by dividing net sales by average net fixed assets. A decrease in operating expenses does not affect net sales or  average net fixed assets.  AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Understand 
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  • Fall '16
  • jhg bgy
  • AACSB, Plant and Equipment, Thinking AICPA FN, Critical Thinking AICPA, Medium Learning Objective, Measurement Bloom

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