LLS6e Ch 08 MC Quizzes

LLS6e Ch 08 MC Quizzes - Libby/Libby/Short6e...

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Libby/Libby/Short 6e Chapter 8 – Multiple-Choice Quizzes  1 A company purchased for cash a machine with a list price of $120,000, upon which a 25% trade discount  was applied.  The machine was shipped FOB shipping point at a cost of $5,000. Installation and test runs  of the machine cost $3,000. The recorded acquisition cost of the machine is:  A) $98,000. B) $128,000. C) $90,000. D) $93,000.   Answer A 2 A special repair to a machine will extend the life of the machine an additional four years beyond the original  estimated life of 6 years. The $50,000 cost of this repair is: A) a revenue expenditure. B) A capital expenditure. C) an ordinary repair and maintenance expenditure. D) either (A) or (B). Answer B 3 The side racks on a delivery truck were extended in height from 3 feet to 6 feet, at a cost of $800. This is  an example of A) a revenue expenditure. B)
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This note was uploaded on 01/19/2012 for the course ACC 211 taught by Professor Sicre during the Spring '07 term at University of Miami.

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LLS6e Ch 08 MC Quizzes - Libby/Libby/Short6e...

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