QUESTION 1 25 points 2.5 points Save Answer Which of the following is included in the cost of a plant asset? OA) amounts paid to make the asset ready for its intended use O ) regular repair and ma d maintenance costs C) replacement of damaged parts of the asset OD) wages of workers who use the asset in normal operations 2.5 points Save Answer which of the following amounts should the plant asset recorded? QUESTION 2 Masonry Construction Group paid $12,000 for a plant asset that had a market value of $14,500. A) $14,500 O B) $6000 OC) $12,000 OD) $24,000 QUESTION 3 2.5 points Save Answer Which of the following is a characteristic of a plant asset, such as a building? O A) It is used in the operations of a business. OB) It is available for sale to customers in the ordinary course of business. C) It has a short useful life. OD) It will have a negligible value at the end of its useful life. QUESTION 4 2.5 points Save Answer Which of the following statements is incorrect? OA) The life cycle of a plant asset Includes: acquisition, usage, and disposal. OB) Depreciation is recorded on all plant assets. O Plant assets not currently being used in business operations are classified as long-term investments. OD) Plant assets are long-lived tangible assets used in the operations of a business. QUESTIONS 2.5 points Save Answer An asset is considered to be obsolete OA) only when it wears out O B) only at the end of its useful life C) when it is fully depreciated D) when a newer asset can perform the job more efficiently than the old asset can QUESTION 6 2.5 points Save Answer Which of the following requires businesses to record depreciation? OA) revenue recognition principle OB) matching principle OC) cost principle D) going concern principle QUESTION 7 2.5 polnts Save Answer The expected value of an asset at the end of its useful life is known as A) book value B) residual value o carrying value OD) market value QUESTION 8 2.5 points Save Answer Which of the following depreciation methods allocate a varying amount of depreciation to expense each year based on an asset's usage? A) the straight-line method B) the annuity method o the units-of-production method D) the double-declining balance method