Question 13 (1 point) A capital asset was purchased on January 1 for $30,000 with an estimated residual value of $6,000 at the end of its useful life. The current year's Amortization Expense is $3,000 calculated on the straight-line. The estimated useful life of the plant asset is Question 13 options: a) 10 years. b) 8 years. c) 5 years. d) 3 years. Question 14 (1 point) The following items should be NOT be capitalized regarding a truck: Question 14 options: Purchase price Freight in Yearly oil change The cost of a new licence plate Question 15 (1 point) A company purchased land for $70,000 cash. $7,000 was spent for demolishing an old building on the land before construction of a new building could start Under the cost principle, the cost of land would be recorded at: Question 15 options: a) $77,000. b) $70,000. c) $63,000. d) $7,000. Question 16 (1 point) In calculating amortization, residual value is Question 16 options: a) the fair market value of a capital asset on the date of acquisition. b) subtracted from accumulated amortization to determine the capital asset's amortizable cost. c) an estimate of a capital asset's value at the end of its useful life. d) ignored in all the amortization methods. Question 17 (1 point) The declining-balance method of amortization produces Question 17 options: a decreasing amortization expense each period. an increasing amortization expense each period. a declining percentage rate each period. a constant amount of amortization expense each period. Question 18 (1 point) The net book value of an asset is equal to the Question 18 options: asset's market value less its historical cost. asset's cost less amortization expense. replacement cost of the asset. asset's cost less accumulated amortization. Question 19 (1 point) Use the following information for questions 14-16. A company purchased property for $300,000. The property included an acre of land valued at $50,000, a building valued at $150,000, and equipment valued at $125,000. The land will be recorded at a cost of Question 19 options: a) 45,000. b) $48,234. c) $46,154. d) $50,000. Question 20 (1 point) The building will be recorded at a cost of Question 20 options: $150,000. $140,000. $135,000. $138,461. Question 21 (1 point) The equipment will be recorded at a cost of Question 21 options: $115,384. $118,723. $120,000. $125,000. Question 22 (1 point) A factory machine was purchased for $20,000 on January 1, 2015. It was estimated that it would have a $4,000 residual value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. If the actual number of machine hours run in 2015 was 4,000 hours and the company uses the units-of-activity method of amortization, the amount of amortization expense for 2015 would be Question 22 options: a) $2,000. b) $3,200. c) $4,000. d) $1,600. Question 23 (1 point) Intangible assets include Question 23 options: a) property, plant, and equipment. b) natural resources, such as mineral deposits and oil and gas reserves. c) assets that provide future benefits through special rights and privileges. d) government services. Question 24 (1 point) Research costs not related a specific product Question 24 options: are classified as intangible assets. must be expensed when incurred under generally accepted accounting principles. should always be capitalized rather than expensed are capitalized and then amortized over a period not to exceed 40 years. Question 25 (1 point) When an Accounts Receivable is written off: Question 25 options: Bad Debt Expense is credited Allowance for Doubtful Accounts is credited Accounts Receivable is credited Sales is credited. Question 26 (1 point) American Express is an example of a: Question 26 options: a) Bank Credit Card b) Debit Card c) Retail Store Card d) Non-bank Credit Card Question 27 (1 point) Which of the following methods of calculating amortization is production based? Question 27 options: Straight-line Declining-balance Units-of-activity None of these Question 28 (1 point) In Canada, Debit Card transactions are made through a system called: Question 28 options: a) Debit Direct b) Interac Direct Payment c) Interact d) International Direct Payment Question 29 (1 point) Any fees associated with accepting a form of payment are: Question 29 options: a) Not recorded b) Recorded as a Loss on Sale c) Recorded as a Fees Expense d) Can be any of the above depending on the nature of the business. Question 30 (1 point) Sales made by using debit cards are: Question 30 options: a) Recorded as a debit to Accounts Receivable b) Recorded as a debit to Sales c) Recorded as a debit to Inventory d) Recorded as a debit to Cash