36 When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry a debit Accumulated Depreciation credit Machinery b debit Machinery credit Accumulated Depreciation c debit Cash credit Accumulated Depreciation d debit Depreciation Expense credit Accumulated Depreciation 37 A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of a $ 96,000 b $108,000 c $102,000 d $110,000 38 Current liabilities reported on a Balance Sheet are a due, but not receivable for more than one year b due, but not payable for more than one year c due and receivable within one year d due and payable within one year 39 The journal entry for recording an operating lease payment would a be a memo entry only b debit the fixed asset and credit Cash c debit lease expense and credit Cash d debit a liability and credit Cash 40 Which intangible assets are amortized over their useful life a trademarks b goodwill c patents d all of the above 41 Which of the following should be included in the acquisition cost of a piece of equipment a transportation costs b installation costs c testing costs prior to placing the equipment into production d all of the above 42 A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n) a defined contribution plan b defined benefit plan c unfunded plan d funded plan 43 A capital expenditure results in a debit to a an expense account b a capital account c a liability account d an asset account 44 During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $20,500 and $15,000 The vacations are expected to be taken the next year and the pension rights are expected to be paid the next 25 years What is the total cost of vacation pay and pension rights to be recognized in the 1st year a $29,500 b $35,500 c $23,500 d $20,500 45 The journal entry a company uses to record partially funded pension rights for its salaried employees, at the end of the year is a debit Salary Expense credit Cash b debit Pension Expense credit Unfunded Pension Liability c debit Pension Expense credit Unfunded Pension Liability and Cash d debit Pension Expense credit Cash 46 The journal entry a company uses to record the payment of an ordinary note is a debit Cash credit Notes Payable b debit Accounts Payable credit Cash c debit Notes Payable and Interest Expense credit Cash d debit Notes Payable and Interest Receivable credit Cash

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____ 36. When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry a. debit Accumulated Depreciation; credit

____ 36. When a company discards machinery that is fully depreciated, this transaction would be recorded with the following entry

a.	debit Accumulated Depreciation; credit Machinery
b.	debit Machinery; credit Accumulated Depreciation
c.	debit Cash; credit Accumulated Depreciation
d.	debit Depreciation Expense; credit Accumulated Depreciation

____ 37. A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $6,000, and special acquisition fees of $2,000, would have a cost basis of

a.	$ 96,000
b.	$108,000
c.	$102,000
d.	$110,000

____ 38. Current liabilities reported on a Balance Sheet are

a.	due, but not receivable for more than one year
b.	due, but not payable for more than one year
c.	due and receivable within one year
d.	due and payable within one year

____ 39. The journal entry for recording an operating lease payment would

a.	be a memo entry only
b.	debit the fixed asset and credit Cash
c.	debit lease expense and credit Cash
d.	debit a liability and credit Cash

____ 40. Which intangible assets are amortized over their useful life?

a.	trademarks
b.	goodwill
c.	patents
d.	all of the above

____ 41. Which of the following should be included in the acquisition cost of a piece of equipment?

a.	transportation costs
b.	installation costs
c.	testing costs prior to placing the equipment into production
d.	all of the above

____ 42. A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n)

a.	defined contribution plan
b.	defined benefit plan
c.	unfunded plan
d.	funded plan

____ 43. A capital expenditure results in a debit to

a.	an expense account
b.	a capital account
c.	a liability account
d.	an asset account

____ 44. During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $20,500 and $15,000. The vacations are expected to be taken the next year and the pension rights are expected to be paid the next 25 years. What is the total cost of vacation pay and pension rights to be recognized in the 1st year?

a.	$29,500
b.	$35,500
c.	$23,500
d.	$20,500

____ 45. The journal entry a company uses to record partially funded pension rights for its salaried employees, at the end of the year is

a.	debit Salary Expense; credit Cash
b.	debit Pension Expense; credit Unfunded Pension Liability
c.	debit Pension Expense; credit Unfunded Pension Liability and Cash
d.	debit Pension Expense; credit Cash

____ 46. The journal entry a company uses to record the payment of an ordinary note is

a.	debit Cash; credit Notes Payable
b.	debit Accounts Payable; credit Cash
c.	debit Notes Payable and Interest Expense; credit Cash
d.	debit Notes Payable and Interest Receivable; credit Cash