14. Secured bonds are bonds that a. are in the possession of a bank nb. are registered in the name of the owner. have specific assets of the issuer pledged as collateral. d. have detachable interest coupons. C. 15. A major disadvantage resulting from the use of bonds is that a. earnings per share may be lowered. b. interest must be paid on a periodic basis. bondholders have voting rights. C. taxes may increase. d 16. The fundamental difference between "tangible" assets and "intangible" assets is: A) B) C) D) the size of the asset. the value of the asset. both the size and value of the asset. the presence of physical characteristics 17. A company built a machine for its own use at a cost of $54,200; testing and break-in costs amounted to another $570. A similar machine could have been purchased from a supplier for $66,500, less a 2 percent cash discount, plus transaction costs of $950, plus estimated break-in costs of $570. The machine built by the company should be recorded in its accounts at: A) $55,430 B) $56,030 C) $54,770 D) $66,690 A 18. Depreciation is generally caused by: Inadequacy b. Obsolescence d c. Physical deterioration d. All of the above od o a. 19. With a fairly constant output expected, the use of which of the following depreciation methods will yield the largest amount of depreciation expense for the first year of a machine life? a. o A bosilasiq Double-declining balance b. Units of output Straight-line oid. All of the above batloc ad ba o d C. 20. When disposing of a plant asset, the asset account is credited for the: a. Net asset value b. Asset's accumulated depreciation to date Original cost of the asset d. All of the above answers are correct. m A C