Question 5 (2 points) Which of the following would NOT qualify as a capital expenditure? (remember to look up the accounting terminology and usage of capital expenditure vs revenue expenditure) Overhauled an engine Installed new carpet Replaced tires on company trucks Replaced the warehouse roof Question 6 (2 points) The accounting term depreciation measures The utilization of the asset The amount of cash a company sets aside for asset replacement The amount of an asset's cost that is allocated to expense over time Anticipated losses if sold earlier than intended Question 7 (2 points) Accumulated depreciation is Cash reserved for asset replacement A liability account since it is credited A suspense equity account with a credit balance A contra account to the related asset O Question 8 (2 points) Depreciable cost equals W ars --- Cost less accumulated depreciation Book value less residual value Cost less residual value Market value less residual value Question 9 (2 points) To measure depreciation, all of the following must be known except Market value Residual value Question 10 (2 points) A machine was purchased for $45,000. It has a useful life of 6 years and a residual value of $6,000. Under the straight-line method, what is annual depreciation expense? $7,500 $15,000 $3,750 $6,500 Question 11 (2 points) On September 1, a machine with a useful life of 8 years and a residual value of $5,000 was purchased for $47,000. What is depreciation expense for the partial year using straight-line depreciation assuming a December 31 year end? $5,250 $5,875 $1,750 $3,500 Question 12 (2 points) Book value is defined as Current market value less residual value Cost less residual value Current market value less accumulated depreciation Cost less accumulated depreciation Question 13 (2 points) Which method of depreciation would most accurately match revenues and expenses if usage of the asset varies considerable from one period to the next? Straight-line Units-of-production Declining balance O I'll be sad if you get this one wrong - and don't pick D