choose answers from 10 of the following multiple choice questions.

1-Improvements to Land are:

	Debited to the Building account
	Credited to the Land account
	Debited to Land Improvements account
	Credited to the Building account
	Debited to the Land account

2-The following asset is not depreciated:

	All Property, Plant, and Equipment are depreciated
	Furniture
	Land
	Equipment
	Buildings

3-Buildings are:

	Not depreciated
	Expensed when purchased
	Depreciated over 10 years
	Appreciated when real estate goes up
	Depreciated over their useful life

4-A company purchased a vehicle. The vehicle cost $36,000 and has a salvage value of $1,000. The vehicle is expected to last five years. The company uses straight-line depreciation. What is the depreciation expense for year #1.

	$6,500
	$7,200
	$7,000
	$35,000
	$1,000

5-A company purchased a vehicle. The vehicle cost $36,000 and no salvage value. The vehicle is expected to last five years. The company uses straight-line depreciation. What is the depreciation expense for year #1.

	$35,000
	$6,500
	$7,000
	$1,000
	$7,200

6-Depreciation is applied to:

	Cars, Buildings, & Furniture
	Cars, Gas, & Land
	Furniture, Utilities, & Wages
	Buildings, Land, & Equipment
	Buildings, Furniture, & Owners Equity

7-A company purchased a vehicle. The vehicle cost $36,000 and has a salvage value of $1,000. The vehicle is expected to last five years. The company uses straight-line depreciation. What is the initial entry into the companys books when the vehicle was purchased?

	Debit Accumulated Depreciation for $36,000, Credit Cash for $36,000
	Debit Vehicle Expense for $36,000, Credit Accumulated Depreciation for $36,000
	Debit Cash for $35,000, Debit Accumulated Depreciation for $1,000, Credit Vehicles for $36,000
	Debit Vehicles for $36,000, Credit Cash for $36,000
	Debit Vehicles for $35,000, Debit Salvage Value for $1,000, Credit Accumulated Depreciation for $36,000

8-Recording depreciation addresses requirements from two different accounting principles. These principles are:

	Conservatism & Time Period
	Cost & Conservatism
	Economic Entity & Monetary Unit
	Cost & Matching
	Revenue Recognition and Matching

9- The book value of an asset is determined by:

	Amount paid for the asset minus depreciation
	The amount recorded in the asset account
	Amount paid for the asset plus depreciation
	Amount paid for the asset minus the salvage value
	The market value

10-The normal balance of a contra-account to an asset is:

	Debit
	Credit
	No normal balance