1) A co. made expenditures for building construction each month of 20X1. The total amount of weighted-average accumulated expenditures for 20X1?

A. is less than the sum of the expenditures for building construction

B) is equal to the sum of the expenditures for building construction

C) is greater than the sum of the expenditures for building construction

2) Freight costs incurred by a company purchasing office furniture

A. are included in the cost of the furniture

B) are expensed

3) Recording depreciation

A. is an estimate of cost allocation, not a process of valuation

B. is a process of valuation, not an estimate of cost allocation

C. is an estimate of cost allocation and a process of valuation

4) When a co. acquires a group of assets as a lump-sum purchase

A. the company allocates total fair value among the various assets on the basis of their relative costs

B. the company allocates total cost among the various assets on the basis of their relative fair values

5) When a company records the sale of equipment for cash after using it for two years

A. the accumulated depreciation account is neither debited nor credited

B. the accumulated depreciation account is credited

C. the accumulated depreciation account is debited

6) The cost of a machine purchased by signing a zero-interest-bearing note

A. is the present value of the note

B. is the discount on the note

C. is the face value of the note

7) A co. engaged a contractor to construct a building for the co. Assume the co. has construction debt that includes a 12% note, and other debt that includes a 9% bond & a 13% note. When determining avoidable interest, the co. will need to compute a weighted average interest rate that takes into account

A. the 9% bond & the 13% note

B. the 12% note, the 9% bond, & the 13% note

C. the 12% note & the 9% bond

D. the 12% note & the 13% note