this is my exam 2 i missed number the exam so you will notice that i went 11 skipped 12 then 13

6 1.Patents, copyrights, and trademarks are: A. amortized. B. depleted. C. depreciated. D. expensed. 2.Equipment, buildings, and vehicles are: A. amortized. B. depleted. C. depreciated. D. expensed. 3.Minerals, timer and coal are: A. amortized. B. depleted. C. depreciated. D. expensed. 6 4.Assets that CANNOT be seen, touched, or held are called: A. plant assets. B. natural resources. C. tangible assets. D. intangible assets. 5.Which of the following would be considered a natural resource? A. Corn B. Wheat C. Livestock D. Timber 6 7. Which of the following would be considered a fixed asset? A. timber B. patents C. land D. both A and C are fixed assets 6 8.McDonald's "golden arches" are an example of a(n) _______, which would be classified as a(n) _______. A. trademark; plant asset B. patent; intangible asset C. patent; plant asset D. trademark; intangible asset 9.Which of the following would be considered part of the cost of machinery and equipment? A. Maintenance B. Insurance after purchase C. Repairs after startup D. Sales taxes 10.Capitol Construction Company made a basket purchase of three items. Item X was appraised at $55,000; item Y was appraised at $65,000 and item Z was appraised at $40,000. The purchase price was $125,000. The amount at which item Z should be recorded (rounded to the nearest dollar) is: (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) A. $51,200. B. $42,969. C. $31,250. D. $40,000. 6 11.In accounting, what is the meaning of capitalized? A. Capitalized means that an asset account is debited (increased) for the cost of an asset. B. Capitalized means that a liability account is credited (increased) for the cost of an asset. C. Capitalized means that the cost of an asset is recorded as a debit (increase) to expense. D. Capitalized means that a given city has been selected as a government center. 13.A company purchased a computer system on March 1. Its cost was $40,000, and it had an estimated salvage value of $5,000. It was expected to have a useful life of five years. To the nearest dollar, the depreciation for year 1 using straightline depreciation will be: (Assume company yearend is December 31. Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar. Do not convert the useful life of the asset to months.) A. $8,750. B. $5,810. C. $6,563. D. $10,000. 14.A company purchased furniture on January 1. Its cost was $15,600, and it had a residual value of $3,600. Its useful life is determined to be 8 years. Using doubledeclining balance depreciation, the depreciation for year 1 to the nearest dollar will be: A. $3,000. B. $3,900. C. $1,500. D.$1,950. 6 15.Cesario Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced 15,000 units. To the nearest dollar, the depreciation for the first year under the units of production method will be: A. $34,500. B. $28,750. C. $37,500. D. $31,250. 16.Ironworks Industries purchased a piece of equipment for $80,000 with an estimated salvage value of $15,000 on January 1. Its estimated life is 5 years. To the nearest dollar, what is the equipment's depreciation using doubledecliningbalance for year 2? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) A. $13,000 B. $26,000 C. $19,200 D. $32,000 6 17.Only Organics has a delivery truck that was purchased for $48,000 and has a salvage value of $4,000. It expects the truck to last 200,000 miles. During Year 1, the truck traveled 32,500 miles and during Year 2, the truck traveled 29,500 miles. What is the depreciation expense for Year 2 to the nearest dollar using the unitsofproduction method? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.) A. $6,490 B. $7,080 C. $7,800 D. $7,150 18.It is determined that a computer's depreciation expense for the year is $3,500. The journal entry to record this will be: A. debit Depreciation Expense computer $3,500; credit Cash $3,500. B. debit Accumulated Depreciation computer $3,500; credit Cash $3,500. C. debit Cash $3,500; credit Depreciation Expense computer $3,500. D. debit Depreciation Expense computer $3,500; credit Accumulated Depreciation, $3,500. 6 19.Acme paid $160,000 for a machine with a $9,000 salvage value and an estimated life of 200,000 hours. Acme reports on a calendar year basis and used the machine for 2,100 hours during the first year it owned the asset. Which of the following statements accurately compare the first year depreciation expense if the asset had been purchased on January 1 of the current year versus a March 1 acquisition date. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) A. Depreciation Expense if acquired January 1 is $1,586 and if acquired March 1 is $1,322. B. Depreciation Expense if acquired January 1 is $ 1,680 and if acquired March 1 is $1,400. C. Depreciation Expense if acquired January 1 is $1,586 and if acquired March 1 is $1,189. D. In both cases, the Depreciation Expense is $1,586. 20.Lubricating a machine on a regular basis would be considered a(n): A. capital expense. B. capital expenditure. C. ordinary repair. D. betterment 6 21.Upgrading the RAM on a computer would be an example of a(n): A. extraordinary repair. B. capital expense. C. betterment. D. ordinary repair. 22.A company replaced an engine on a vehicle and debited the amount to Repairs and Maintenance expense, rather than debiting the Vehicle account. Which of the following would occur because of this error? A. Assets would be overstated. B. Repairs expense would be understated. C. Net income would be overstated. D. Assets would be understated. 23.If an extraordinary repair is incorrectly expensed in the current period, the net income for that period will be: A. understated and net income in future periods will not be affected. B. overstated and net income in future periods will not be affected. C. overstated and net income in future periods will be understated. D. understated and net income in future periods will be overstated. 6 24.A repair that extends the useful life of an asset would be considered a(n): A. ordinary repair. B. extraordinary repair. C. capital expense. D. betterment. 25.A truck costing $56,000 has accumulated depreciation of $50,000. The truck is scrapped for $700. The journal entry to record this transaction is to: A. debit Accumulated Depreciation Truck for $50,000, debit Loss on Disposal $6,000, and credit Truck for $56,000. B. debit Cash for $700, debit Loss on Disposal for $55,300 and credit Truck for $56,000. C. debit Cash for $700, debit Truck for $50,000, debit Loss on Disposal for $5,300 and credit Accumulated Depreciation Truck for $56,000. D. debit Cash for $700, debit Accumulated Depreciation Truck for $50,000, debit Loss on Disposal for $5,300 and credit Truck for $56,000. 26.Research and development costs (R&D) are generally: A. listed as "current assets" on the Balance Sheet. B. listed as "longterm assets" on the Balance Sheet. C. expensed and become part of the Income Statement. D.listed as "other intangibles" on the Balance Sheet. 6 27.A patent has amortization this year of $2,300. The journal entry would be to: A. debit accumulated amortizationpatent, $2,300; credit patent, $2,300. B. debit amortization expensepatent, $2,300; credit Accumulated Depreciationpatent, $2,300. C. debit accumulated amortizationpatent, $2,300; credit amortization expensepatent, $2,300. D. debit amortization expensepatent, $2,300; credit patent, $2,300. 28.Betta Group purchased Danio, Inc. for $960,000. The market value of Danio's assets and liabilities at the time of purchase were $1,300,000 and $360,000 respectively. The journal entry to record this will include: A. debit to Investments for $1,300,000, credit to Cash $960,000 and credit to Gain on Investment $340,000. B. debit to Asset accounts for $1,300,000, debit to Goodwill $20,000, credit to Liabilities $360,000 and credit to Cash $960,000. C. debit to Investments for $960,000, credit to Cash $960,000. D. debit to Asset accounts for $1,300,000, credit to Gain on Investments $340,000 and credit to Cash $960,000. 6 29.Aspen Ore purchased a vein of coal ore for $5,300,000. It is estimated that 32,000,000 tons of ore are available to be extracted. The estimated depletion expense for this year's extraction of 2,790,000 tons of ore is: (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) A. $502,200. B. $415,686. C. $474,300. D. $5,300,000. 30.Accumulated depletion is a(n): A. expense account. B. contraasset account. C. contraliability account. D. cash account. 6 31.Properties whose physical substance consists of natural resources that are consumed in the operation of a business are called: A. depreciable assets. B. depletable assets. C. amortizable assets. D. intangible assets. 32.Which of the following would be considered an estimated liability? A. Warranties payable B. Pending litigation C. Sales tax payable D. Notes payable 33.Which of the following would be considered a known liability? A. Pending litigation B. Possible contingency payable C. Warranties payable D. Accounts payable 6 34.Which of the following would be considered a contingent liability? A. Salaries payable B. Federal income tax payable C. Pending litigation D. Warranties payable 35.An obligation dependent upon an event that has not yet occurred is an example of a(n): A. known liability. B. accrued liability. C. contingent liability. D. estimated liability. 36.A company signs a note payable for $4,500 at 11% for 65 days. How much interest (to the nearest cent) will the company owe using a 360day year? (Round your final answer to the nearest cent.) A. $89.38 B. $99.21 C. $88.15 D. $495.00 6 37.S&C Roofing had sales on account of $32,500 which were subject to state sales tax of 8%. The entry to record the sales would be to: A. debit Accounts Receivable, $35,100; credit Sales revenue, $32,500; credit Sales tax payable, $2,600. B. debit Accounts Receivable, $32,500; credit Sales revenue, $32,500. C. debit Accounts Receivable, $35,100; credit Sale revenue, $35,100. D. debit Accounts Receivable, $32,500; debit Sales tax payable, $2,600; credit Sales revenue, $35,100. 38.Cypress Corp. had sales on account of $20,500 which were subject to state sales tax of 99%. The entry to record the sales would be to: A. debit Accounts Receivable $20,500; debit Sales Tax Payable $1,845; credit Sales Revenue $22,345. B. debit Accounts Receivable $20,500; credit Sales Revenue $20,500. C. debit Accounts Receivable $22,345; credit Sales Revenue $22,345. D. debit Accounts Receivable $22,345; credit Sales Revenue $20,500; credit Sales Tax Payable $1,845. 6 39.If the likelihood of an obligation is remote: A. no action is necessary in the accounting treatment. B. the disclosure with explanation is put into the financial statement footnotes. C. the obligation with the estimated dollars is recorded on the Balance Sheet. D. the obligation with the estimated dollars is recorded and put into the footnotes. 40.The disclosure of a contingent liability in the footnotes and on the Balance Sheet indicates that the potential for the obligation occurring is: A. remote. B. possible. C. certain. D. probable. 41.Bonds from the same bond issue that mature at different times are called: A. unsecured bonds. B. convertible bonds. C. term bonds. D.serial bonds 6 42.Bonds that may be retired at a prearranged price are called: A. callable bonds. B. convertible bonds. C. term bonds. D. secured bonds. 43.Bonds that mature all at the same time are: A. secured bonds. B. callable bonds. C. serial bonds. D. term bonds. 44.Bonds that are backed by collateral are: A. callable bonds. B. unsecured bonds. C. convertible bonds. D. secured bonds. 6 45.Bonds that are backed only by the credit of the issuing company are: A. collateral bonds. B. callable bonds. C. term bonds. D. unsecured bonds. 46.Debenture bonds are the same as: A. secured bonds. B. term bonds. C. unsecured bonds. D. serial bonds. 47.Bonds that can be exchanged for stock are called: A. callable bonds. B. serial bonds. C. convertible bonds. D. debenture bonds. 6 48.The amount that a borrower must pay back to the bondholders on the maturity date is the: A. market value. B. stated value. C. interest. D. principal. 49.The rate of interest that is printed on the bond is called the ________ rate of interest. A. stated B. market C. variable D. maturity 6 50.The rate of interest that investors are willing to receive for similar bonds of equal risk at the current time is the ________ rate of interest. A. market B. maturity C. stated D. variable 51.If a bond's stated rate of interest is equal to the market rate of interest, the bond will be issued at: A. a discount. B. maturity value. C. par. D. a premium. 52.If the market rate of interest is greater than the bond's stated rate of interest, the bond will be issued at: A. a discount. B. maturity value. C. par. 6 D.a premium. 53.If the market rate of interest is less than the bond's stated rate of interest, the bond will be issued at: A. maturity value. B. par. C. a premium. D. a discount. 54.A $30,000 bond issue with a stated rate of interest of 6%, when the market rate of interest is 7%, means that the bond will be sold for: A. more than $30,000. B. less than $30,000. C. $30,000 D. the maturity value. 55.A $330,000 bond issue sold at 110 will cost: (Round your final answer to the nearest dollar.) A. $363,000 B. $300,000 C. $330,000 6 D. whatever cost is negotiated. 56.A $170,000 bond issue sold at 97 will cost: (Round your final answer to the nearest dollar.) A. whatever cost is negotiated. B. $175,258 C. $164,900 D. $170,000 57.The journal entry to record $400,000 of bonds that were issued at 107 would be to: A. debit Cash, $400,000; debit Discount on bonds payable, $28,000; credit Bonds payable, $428,000. B. debit Cash, $428,000; credit Bonds payable, $400,000; credit Premium on bonds payable, $28,000. C. debit Cash, $428,000; credit Bonds payable, $428,000. D. debit Cash, $400,000; credit Bonds payable, $400,000. 58.The journal entry to record $230,000 of bonds that were issued at 98 would be to: A. debit Cash, $225,400; debit Discount on bonds payable, $4,600; credit Bonds payable, $230,000. B. debit Cash, $230,000; credit Bonds payable, $230,000. C. debit Cash, $230,000; credit Bonds payable, $225,400; credit Premium on bonds payable, $4,600. D. 6 debit Cash, $225,400; credit Bonds payable, $225,400. 59.$300,000 of 6%, 20year bonds were sold for $330,000 on January 1. The bonds require semiannual interest payments on June 30 and December 31. The entry to record the June 30 interest payment on the bonds would be to: (Round your final answer to the nearest dollar.) A. debit Interest Expense $8,250; debit Premium on bonds payable, $750; credit Cash, $9,000. B. debit Interest Expense $8,250; credit Cash, $8,250. C. debit Interest Expense $9,000; credit Cash, $9,000. D. debit Interest Expense $9,750; credit Premium on bonds payable, $750; credit Cash, $9,000 60.A $260,000 issue of bonds that sold for $255,000 matures on June 25, 2020. The journal entry to record the payment of the bond on the maturity date is to: A. debit Cash, $255,000; credit Bonds payable, $255,000. B. debit Bonds payable, $255,000; credit Cash, $255,000. C. debit Cash, $260,000; credit Bonds payable, $260,000. D. debit Bonds payable, $260,000; credit Cash, $260,000. 61.Bonds payable minus the Discount on bonds payable yields the: A. maturity value. B. annual interest. C. carrying amount. 6 D. principle amount