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1- Assets that cannot be seen, touched , or held are called: A. Intangible asset

ID: 2435191 • Letter: 1

Question

1- Assets that cannot be seen, touched , or held are called:
A. Intangible assets
B. Natural resources
C. Tangible assets
D. Plant assets

2- Which of the following would NOT be considered part of the cost of machinery and equipment ?
A. In- transit insurance costs
B. Delivery charges
C. Installation costs
D. Repairs and maintenance after start – up

3. After an asset is fully depreciated, the asset :
A. Remains on the balance sheet at value of $50
B. Must be removed from the balance sheet
C. Remains on the balance sheet at cost
D. Remains on the balance sheet at (cost- accumulated depreciation )

4. If an asset generates revenue evenly over time, the depreciation method best suited for this asset would be the :
A. Expense method
B. straight –line method
C. Units –of –production method
D. double – declining balance method

5. The total cost allocated to each item in a basket purchase is based upon:
A. Their individual market values
B. The original cost of items
C. Their individual selling price
D. Their relative market values

Explanation / Answer

1- Assets that cannot be seen, touched , or held are called: A. Intangible assets 2- Which of the following would NOT be considered part of the cost of machinery and equipment ? D. Repairs and maintenance after start – up 3. After an asset is fully depreciated, the asset : D. Remains on the balance sheet at (cost- accumulated depreciation ) 4. If an asset generates revenue evenly over time, the depreciation method best suited for this asset would be the : B. straight –line method 5. The total cost allocated to each item in a basket purchase is based upon: D. Their relative market values