Question 21 (1 point) Choose the accounting method below that best describes how the asset will be treated for accounting purposes. Land Research costs 1. The cost will be treated as asset and depreciated or amortized over its useful life. Training costs for employees Equipment 2. The cost will be treated as an asset. It will not be depreciated but will be subject to an impairment test. Goodwill DOO 3. The cost will be treated as an expense. Patent Trademarks Question 22 (2 points) At the beginning of the year, Laurier Inc. had a balance in its warranty liability Question 23 (1 point) For each of the following transactions, indicate the account that should be debited as part of the transaction. Paid cash for insurance covering a future period. Delivered goods to a customer who had previously paid for the goods in advance. 1. Cash 2 Accounts or trade receivable Used up insurance that had previously been paid for. 3. Prepaid insurance Over the course of the accounting period interest on a loan became payable 4. Insurance expense 5. Interest expense Received cash from a customer for goods to be delivered in the future. 6. Deferred revenue 7. Revenue Sold goods on credit. The goods were delivered to the customer and the customer is likely to pay 8. Interest payable Sold goods for cash. The goods were delivered at the time of the sale