1. All of the following are considered fixed assets EXCEPT

building.

truck.

land.

accounts receivable.

2. If a purchased item is long-lived but not used in normal operations, the asset is classified and recorded as a(n)

fixed asset.

investment.

expense.

contra asset.

1. All of the following fixed assets are depreciated EXCEPT

building.

truck.

land.

equipment.

2. The difference between a fixed assets initial cost and residual value is known as its

depreciable cost.

book value.

accumulated depreciation.

net revenue.

3. Which of the depreciation methods is called an accelerated depreciation method?

Straight-line method

Double-declining-balance method

Units-of-activity method

All of these choices are correct.

4. The journal entry to record costs related to extraordinary repairs would include a __________ to __________.

credit; Accumulated Depreciation

debit; Accumulated Depreciation

debit; Cash

credit; the respective asset account

1. Assume that equipment acquired at a cost of $10,000 is fully depreciated. On June 30, the equipment is discarded. The entry to record the discard would be to debit __________ and credit __________.

Equipment; Accumulated DepreciationEquipment

Accumulated DepreciationEquipment; Equipment

Equipment; Depreciation ExpenseEquipment

Accumulated DepreciationEquipment; Depreciation ExpenseEquipment

2. The entry to record the sale of equipment at book value would include a __________ to __________.

debit; Loss on Sale of Equipment

credit; Cash

debit; Accumulated Depreciation

credit; Accumulated Depreciation

1. Which of the following is NOT a characteristic of natural resources?

Removed for sale

Exist physically

Naturally occurring

Removed and sold over more than one year

2. The journal entry to record depletion would include a __________ to __________.

debit; Depletion Expense

credit; Depletion Expense

debit; Accumulated Depreciation

credit; Natural Resource Expense