ACCT 701 Module 5 Quiz Review 2018.docx - Module 5 Quiz Review 2018 Question 1 10\/10 15 Pts(T F The cost of land includes its purchase price and other

# ACCT 701 Module 5 Quiz Review 2018.docx - Module 5 Quiz...

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Module 5 Quiz Review 2018 10/10 15 Pts Question 1(T / F) The cost of land includes its purchase price and other related costs, including the cost of removing an old unusable building that is on the land. Select one:TrueFalseCorrect. The cost of land includes all normal, reasonable, and necessary expenditures to obtain the land and get it ready for use.The correct answer is 'True'. Question 2(T / F) The formula for calculating straight-line depreciation is: Depreciation per period = (Asset cost – estimated salvage value) / Number of accounting periods (estimated useful life). Question 3(T / F) Units-of-production method: Assigns an equal amount of depreciation to each unit of product manufactured by an asset.