1 Property, plant, and equipment are types of tangible assets True False 0.5 pts Question 2 0.5 pts We record a long-term asset at its cost less all expenditures necessary to get the asset ready for use. O True O False Question 3 0.5 pts We use the term capitalize to describe recording an expenditure as an expense. O True Faise Question 4 0.5 pts Cash received from the sale of salvaged materials increases the total cost of land. O True O False 0 Question 5 0.5 pts Natural resources are distinguished from other property, plant, and equipment by the fact that they are depleted O True O False Question 6 0.5 pts We record purchased intangible assets at their original cost plus all other costs necessary to get the asset ready for use. O True OFalse D Question 7 D 0.5 pts Depreciation in accounting is the process of allocating to expense the cost of an asset over its service life. True O False Question 8 Accumulated Depreciation is a liability account that is increased by credits. O True O False 0.5 pts Question 9 0.5 pts Book value h equal to the original cost of the asset minus the current tance in Accumulated Depreciation True O False Question 10 0.5 pts The Accumulated Depreciation account allows us to reduce the carrying value of assets through depreciation, while maintaining the original cost of each asset in the accounting records. O True O Fahe Question 11 The service life of an asset is always equal to the full life of the asset. O True O False Question 12 0.5 pts 0.5 pts Residual value, also referred to as salvage value, is the amount the company expects to receive from selling the asset at the end of its service life. O True Fabe D Question 13 0.5 pts When a change in estimate is required, the company changes depreciation in prior. current, and future years O The O False Question 14 0.5 pts Most companies use straight-line amortization for intangibles and credit the amount of amortization to the intangible asset account itself rather than to Accumulated Amortization O True O False Question 15 We record a gain if we sell an asset for less than book value. True O False Question 16 We record a loss if we sell an asset for less than book value O True O False 0.5 pts 0.5 pts D Question 17 1 pts Real Angus Steakhouse purchased land for $75,000 cash. Commissions of $4,500, property taxes of $5,000, and title insurance of $800 were also incurred. The $5,000 in property taxes includes $4,000 in back taxes paid by Real Angus on behalf of the seller and $1,000 due for the current year after the purchase date. For what amount should Real Angus Steakhouse record the land? D) $75,000. C) $85,300. A) $83,500, B) $84,300, Question 18 1 pts A company purchased a piece of equipment by paying $5,000 cash. Shipping cost of $400 to get the equipment to its factory was also incurred. The fair value of this equipment is $7,000. For what amount should the company record the equipment? O C) $7,000. OD) $7,400. OB) $5,400. A) $5,000