10 Interactive Quiz B

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Interactive Quiz B http://highered.mcgraw-hill.com/sites/0072996536/student_view0/chapter10/interactive_quiz_b.html[6/22/2010 6:49:40 PM] Interactive Quiz B (See related pages) Results Reporter Out of 30 questions, you answered 16 correctly with a final grade of 53% 16 correct (53%) 13 incorrect (43%) 1 unanswered (3%) Your Results: The correct answer for each question is indicated by a . 1 INCORRECT Plant assets are also called: (1) plant and equipment, (2) property, plant, and equipment, and (3) fixed assets. A) True B) False Feedback: Plant assets are also called: (1) plant and equipment, (2) property, plant, and equipment, and (3) fixed assets. 2 CORRECT One thing that differentiates plant assets from other assets, such as inventory, is that plant assets are held for sale to customers, whereas inventory is used in the daily operations of the company. A) True B) False Feedback: This statement is reversed. Plant assets are held for daily use in the business but inventory is held for sale to customers. 3 INCORRECT When a company buys a building involving a material amount of cash and they immediately record the transaction by debiting Building Expense, the company has violated the matching principle. A) True B) False Feedback: The reason a company separates the cost of fixed assets into individual asset accounts and depreciates each asset over its useful life rather than immediately debiting their cost to an expense account is to follow the matching principle. 4 CORRECT A large newspaper publisher buys a new printing press. This press will occupy approximate one city block when it is assembled. It takes four weeks to assemble the press at a cost of $50,000. This cost should be debited to an expense account. A) True B) False Feedback: Whenever an asset is acquired, accounting procedures require that all of the costs necessary to buy the asset, transport it to its place of intended use, assemble it, and any testing, if needed, are costs that should be capitalized (debited to) the asset account. 5 CORRECT A new automobile is being delivered to a dealership. While unloading the new automobile from the transport carrier, a fender is severely dented. The cost of repairing this dent should be debited to the Inventory account. A) True B) False Feedback: This cost is not part of the acquisition cost of the automobile and should be debited to Repairs Expense. 6 CORRECT When a parcel of land is acquired to erect a new building and there are old buildings on the land that must be demolished to make way for the new building, the cost of demolition is debited to the new building. A) True B) False Feedback: Course-wide Content MH Enhanced Cartridge Sample Study Guide Working Paper Sample Generic Working Papers Student ALEKS Video Library Cogg Hill Practice Set Student Learning Tools NetTutor Appendices Text Updates Tech Support Chapter 10 Quizzes Interactive Quiz A Interactive Quiz B More Resources Glossary Flashcards PowerPoint Presentations Narrated Slides Excel Templates
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This note was uploaded on 08/01/2010 for the course ACC 101 taught by Professor Layvand during the Spring '09 term at Thomas Edison State.

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10 Interactive Quiz B - Interactive Quiz B Home > Chapter...

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