Accounting True and False Questions

If a long-lived asset such as land is NOT used in operations, it should be classified under Investments.

Question 27 options:

	True
	False

A capital expenditure is expensed immediately in the current accounting period.

Question 28 options:

	True
	False

An extraordinary repair is considered a capital expenditure because it extends the assets useful life.

Question 29 options:

	True
	False

An improvement is considered a capital expenditure if it significantly improves the assets capabilities.

Question 30 options:

	True
	False

Revenue expenditures improve or extend the useful life of an asset.

Question 31 options:

	True
	False

The units-of-production method provides the same depreciation each year.

Question 32 options:

	True
	False

Residual value is ignored under declining balance depreciation (at least until the final year of the life).

Question 33 options:

	True
	False

The closer the operational utilization ratio is to 100%, the more efficient the use of the fixed assets.

Question 34 options:

	True
	False

It would be a mistake if Mary Jo Take remains unmarried.

Question 35 options:

	True
	False