ACC 311 Quiz 7 - ACC 311 10/282010 Quiz #8 Name: Class...

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ACC 311 Name: KEY (25 total points) 10/282010 Quiz #8 Class Time: 1. Indicate whether each of the following statements is True or False (2 points each = 12 total points) a. If Merry co. purchased a machine costing $125,000 for its manufacturing operations and the machine was shipped FOB shipping point resulting in shipping costs of $2,000.and an additional $1,000 testing and preparing the machine for use, the amount that Merry would record as the cost of the machine is $ 128,000 True b. Capital expenditures maintain the productive capacity of an asset during the current accounting period only and therefore are recorded as expenses in the current period. Examples include additions, major overhauls and major replacements and improvements. False c. Accumulated depreciation is a contra asset account that is reported on the income statement. False d. The cost of definite life intangibles (eg. patents) are amortized each year. True
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ACC 311 Quiz 7 - ACC 311 10/282010 Quiz #8 Name: Class...

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