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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CHAPTER 11 DEPRECIATION, IMPAIRMENTS, AND DEPLETION TRUE-FALSE —Conceptual Answer No. Description T 1. Nature of depreciation. F 2. Nature of depreciation. T 3. Depreciation, depletion, and amortization. T 4. Definition of depreciation base. F 5. Factors involved in depreciation process. F 6. Definition of inadequacy. T 7. Objection to straight-line method. F 8. Units-of-production approach. F 9. Accelerated depreciation method. T 10. Declining-balance method. T 11. Group or composite approach. F 12. Use of the composite approach. T 13. Accounting for changes in estimates. F 14. Computation of impairment loss amount. T 15. First step in determining an impairment. T 16. Reporting impaired assets held for disposal. F 17. Method used to compute depletion. T 18. Costs included in depletion base. F 19. Computing asset turnover ratio. T 20 Profit margin on sales ratio. MULTIPLE CHOICE —Conceptual Answer No. Description d 21. Knowledge of depreciation accounting. b 22. Conceptual rationale for depreciation accounting. c 23. Depreciation and retaining funds. b S 24. Definition of depreciation. a S 25. Service life vs. physical life. a P 26. Definition of depreciable cost. d 27. Economic factors affecting useful service life. a 28. Activity method of depreciation. a 29. Units-of-production method of depreciation. d 30. Units-of-production method of depreciation. d 31. Knowledge of double-declining balance method. c 32. Components of sum-of-the-years'-digits method. c 33. Graphic depiction of straight-line and sum-of-the-years'-digits methods. b 34. Disadvantage of using straight-line method. b 35. Group method of depreciation. d 36. Identification of composite life. Test Bank for Intermediate Accounting, Twelfth Edition MULTIPLE CHOICE —Conceptual (cont.) Answer No. Description c P 37. Group method of depreciation. c S 38. Composite or group depreciation. b 39. Depreciation for part year. c 40. Change in estimated life of depreciable asset. b 41. Reporting a change in estimate. b 42. Recording an asset impairment. d 43. Depreciation and liquidating dividends. a 44. Classification of depletion expense. d 45. Units-of-production depletion expense. d 46. Reserve recognition accounting. c S 47. Items part of depletion cost. b S 48. Required disclosures for depreciation. b P 49. Definition of book value. d 50. Disclosure of depreciation policy. d 51. Asset turnover ratio. c *52. Objectives of MACRS method. d *53. Factors to consider in MACRS tax depreciation. c *54. Effect of accelerated depreciation on the income statement. P These questions also appear in the Problem-Solving Survival Guide. S These questions also appear in the Study Guide. * This topic is dealt with in an Appendix to the chapter....
View Full Document

This note was uploaded on 04/21/2011 for the course ACC 02 taught by Professor Hashash during the Spring '11 term at Tanta University.

Page1 / 31


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