8 Not yet answered Marked out of 2.0 Flag question Purchasing of land for the purpose of resale to make a profit would be recorded as? investment b. could be fixed asset or investment, depending on the value of the land Oc. expense Od. fixed asset Clear my choice Previous page Question 6 Not yet answered Marked out of 2.0 Flag question Time left 1:05:31 The Nike symbol seen on Nike's products (merchandise) allows it to sell its products, similar to how the Big H company uses machinery to produce its orange juice to sell. Which of the following is TRUE concerning the Nike symbol (trademark) and Big H's machinery? a. The trademark is a fixed asset of Nike just as how the machinery is a fixed asset for Big H. b. Both the trademark for Nike and the machinery for Big H are intangible assets. d. Both the trademark for Nike Company and the machinery for Big H company are long-lived. Both the trademark and the machinery are acquired by each of the businesses for resale. Clear my choice Next page Question 3 Not yet answered Marked out of 2.0 Flag question h Time left 1:09:11 Brodies Company expanded its business by adding an extension to the building. This expenditure would be recorded as a and the account to be debited would be a. capital expenditure; debit building b. capital expenditure; debit accumulated depreciation building O c. revenue expenditure; debit building O d. revenue expenditure; debit repairs and maintenance expense Clear my choice Previous page Next page 6 Question 4 Answer saved Marked out of 2.0 Remove flag 12 If DFC sells one of its fixed assets: a. a loss is to be recorded if the asset is sold for the same price as its book value b. the asset should be credited with the cost price at the time of sale. O c. c. the asset should be credited with the book value amount at the time of sale. Od. the asset should be credited with the selling price amount at the time of sale. Clear my choice Previous page gation 5 6 Question 5 Answer saved Marked out of 2.0 Remove flag 10 11 12 16 17 Time left 1:06:59 Galen University paid $40 to repair a flat tire on one of its motor vehicles. The accountant incorrectly recorded this as a debit to the accumulated depreciation motor vehicle. How will this error affect the financial statements? Oa. owner's equity on the balance sheet would be understated Ob. assets on the balance sheet would be understated Oc.net income on the income statement would be overstated d. expenses on the income statement would be overstated Clear my choice Previous page Next page 11 17 12 12 Which of the following is TRUE concerning goodwill? Flag question Oa. Goodwill is only recorded if the net worth of a business is more than its purchase price. Ob. If the current goodwill balance in the books is more than the revalued balance at the end of the period, a loss on impaired goodwill must be recorded. Oc. Goodwill is an intangible asset but it has no value to a business. d. Goodwill can only be recorded by the selling business (the business that is being sold). Clear my choice Next page Question 2 Answer saved Marked out of 2.0 Flag question A business purchases a motor vehicle at a cost of $40,000 for use in normal operations. It has an estimated residual value of $1,000 and useful life of 10 years. After using the fixed asset for 4 years, the business changed its remaining useful life to be 5 years. This means that for the next 5 years, the depreciation expense to be recorded in the books will change and the depreciation expense already recorded in the books for the previous 4 years will............. a. increase or decrease; it all depends on the new residual value and new remaining life b. remain unchanged c. decrease Od. increase Clear my choice Previous page: Next page