chapter10b

Chapter10b - Chapter 10b 1 The cost of land includes closing costs such as title and attorney's fees A True B Fals e 2 The cost of equipment

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10b 1. The cost of land includes closing costs such as title and attorney's fees. A. True B. Fals e 2. The cost of equipment consists of the cash purchase price, freight charges, motor vehicle licenses and accident insurance on company vehicles. A. True B. Fals e 3. Recognizing depreciation on an asset results in an accumulation of cash for replacement of the asset. A. True B. Fals e 4. The units-of-activity method can be used for airplanes, buildings, and furniture. A. True B. Fals e 5. The declining-balance method is considered an accelerated-depreciation method. A. True B. Fals e 6. The Internal Revenue Service (IRS) requires the taxpayer to use the same depreciation method on the tax return that is used in preparing financial statements.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A. True B. Fals e 7. To determine the revised depreciation expense, the company computes the asset's depreciable cost at the time of the revision and divides it by the asset's remaining useful life. A.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/27/2010 for the course MGT 011A taught by Professor Hancock,john during the Spring '07 term at UC Davis.

Page1 / 12

Chapter10b - Chapter 10b 1 The cost of land includes closing costs such as title and attorney's fees A True B Fals e 2 The cost of equipment

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online