ACC 225 ACC225 Module 6 Check Your Understanding Answers (AAU Online)
ACC 225 Module 6 Check Your Understanding (AAU Online)
1.What are some examples of long-term operating assets?
2.The decision to purchase a long-term asset depends on:
3.Bronson Shipping Company purchased a truck and a trailer for $200,000. An appraisal has set the fair market values of the truck and the trailer at $60,000 and $180,000, respectively. At what amount should Bronson record the truck?
4.In what situation should the depreciation expense account be debited?
5.Beeline Deliveries purchased a delivery truck on January 1, at a cost of $11,200. The truck has an estimated useful life of 4 years or 40,000 miles and a salvage value of $400. If the truck was driven 5,200 miles during the year, the depreciation expense for the year under the straight-line method would be:
6.An expenditure that extends the useful life of an asset is:
7.Weir Industries, Inc. purchased a building during 2009 for $600,000. During 2009 to 2012, $240,000 of depreciation was recorded. The current fair value is $350,000 and the sum of the future cash flows from the building are $370,000. The amount of impairment that should be recognized is:
8.An exclusive right that permits an author to sell, license, or control his/her work is called a:
9.What are post-acquisition expenditures?
10.What is an impaired asset?
11.Exercise 9-28 “Accounting for the Acquisition of a Long-Term Asset” (p. 425)
12.Exercise 9-30 “Acquisition and Depreciation of Assets” (p. 425)
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(TCO 3) Managers are often required to make decisions about the future based