ch11 - CHAPTER 11 DEPRECIATION IMPAIRMENTS AND DEPLETION...

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CHAPTER 11 DEPRECIATION, IMPAIRMENTS, AND DEPLETION MULTIPLE CHOICE —Conceptual Answer No. Description d 1. Knowledge of depreciation accounting. b 2. Conceptual rationale for depreciation accounting. c 3. Depreciation and retaining funds. d 4. Economic factors affecting useful service life. a 5. Activity method of depreciation. a 6. Units-of-production method of depreciation. d 7. Units-of-production method of depreciation. d 8. Knowledge of double-declining balance method. c 9. Components of sum-of-the-years'-digits method. c 10. Graphic depiction of straight-line and sum-of-the-years'-digits methods. b 11. Disadvantage of using straight-line method. b 12. Group method of depreciation. d 13. Identification of composite life. b 14. Depreciation for part year. c 15. Change in estimated life of depreciable asset. b 16. Reporting a change in estimate. b 17. Recording an asset impairment. d 18. Disclosure of depreciation policy. d 19. Depreciation and liquidating dividends. a 20. Classification of depletion expense. d 21. Units-of-production depletion expense. d 22. Reserve recognition accounting. d 23. Asset turnover ratio. c *24. Objectives of MACRS method. d *25. Factors to consider in MACRS tax depreciation. c *26. Effect of accelerated depreciation on the income statement. MULTIPLE CHOICE —Computational Answer No. Description b 27. Calculate depreciation using double-declining balance. b 28. Calculate depreciation using double-declining balance. b 29. Calculate depreciation using double-declining balance. b 30. Calculate depreciation using double-declining balance. *This topic is dealt with in an Appendix to the chapter.
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Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE—Computational (cont.) Answer No. Description c 31. Sum-of-the-years'-digits method. b 32. Sum-of-the-years'-digits method. a 33. Calculate depreciation using sum-of-the-years'-digits. c 34. Calculate depreciation using sum-of-the-years'-digits. c 35. Determine acquisition cost from sum-of-the-years'-digits. b 36. Determine acquisition cost from sum-of-the-years'-digits. c 37. Calculate gain on sale of machinery. a 38. Determine depreciation expense from change in Accumulated Depreciation account. c 39. Determine depreciation expense from change in Accumulated Depreciation account. a 40. Determine composite rate of depreciation. a 41. Determine composite life of a group of assets. b 42. Change in estimated life of equipment. a 43. Determine depreciation expense after major overhaul. b 44. Determine depreciation expense after major overhaul. c 45. Record permanent impairment in value of fixed asset. c 46. Calculate units-of-production depletion expense. c 47. Calculate units-of-production depletion expense. b
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This note was uploaded on 05/01/2011 for the course ACCT 3341 taught by Professor Dr.ramaswamy during the Spring '09 term at University of St. Thomas-Texas.

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ch11 - CHAPTER 11 DEPRECIATION IMPAIRMENTS AND DEPLETION...

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