1.Long-term investments ( assets) of a corporation are: a. amortized B. depleted

ID: 2502919 • Letter: 1

Question

1.Long-term investments ( assets) of a corporation are:

a. amortized

B. depleted

C. depreciated

d. not treated as fixed assets

bit vehicle, credit gain on

2.Which of the following is true?

A. Land is depreciated using the straight line depreciation method

B. Land is amortized using the declining balance method

C. Land is depleted using the units of production method

d. Land is not depreciated, amortized or depleted

3.What account type are marketable securities recorded as upon purchase?

a. Liabilities

B. Assets

C. Revenues

D. Stockholders equity

4. The journal entry for the sale of a vehicle for cash with a gain would include which of the following?

A. debit cash, debit vehicle, credit gain on sale

b. debit cash, credit vehicle, credit gain on sale

c. debit cash, debit accumulated depreciation, credit vehicle, credit gain on sale

d. debit cash, credit accumalated depreciation, credit vehicle, credit gain on sale

1)d. not treated as fixed assets

as they are investment made in other businesses for income purposes such as dividend,interest and not for main business purpose

2)d. Land is not depreciated, amortized or depleted

Land is subject to capitalization and not depreciated or amortised

3)B. Assets

As liabilities,Stockholders equity and revenue are recorded when we sell and not when we purchase

4)c. debit cash, debit accumulated depreciation, credit vehicle, credit gain on sale

If the company follows accumulated depreciation for the asset

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