Which of the following are typical controls for intangible assets? i - Costs associated with the asset are objectively verified ii - Payments are properly documented iii - Documents are properly maintained iv - Qualified staff ensure that transactions are recorded and classified properly Select one: a. iii and iv only b. i, ii, and iv only c. All of i, ii, iii, and iv d. ii, iii, and iv only 2. Which one of the following could be listed as a long-term asset? Select one: a. None the available choices b. Interest Receivable c. Common Shares d. Sales Taxes 3. The financial statements of Liverpool Inc. are made available for the years ended December 31, 2023 and 2022. Selected financial information are presented as follows (in millions): Year 2023 2022 Net Sales $22,356 $20,469 Total Assets, End of the Year $57,462 $56,322 Average Total Assets $56,892 $55,250 Asset Turnover ? 0.37 Net Income (Loss) $2,282 $3,478 Return on Assets ? 6.29% *Note that the total assets for 2021 equals $54,178 What are the asset turnover and return on assets for 2023? (adpq_100) Select one: a. Asset Turnover of 0.43 and Return on Assets of 5.32% b. Asset Turnover of 0.39 and Return on Assets of 4% c. Asset Turnover of 0.22 and Return on Assets of 3.49% d. Asset Turnover of 0.52 and Return on Assets of 6.18% 4. LLL Inc. purchased a machine on October 1, 2022, for use in its factory. The business paid $450,000 for the machine and estimated that it has a useful life of 10 years, at the end of which time the machine is expected to have a residual value of $50,000. During its life, the machine is expected to produce 200,000 units. The machine produced 55,000 units in 2022 and 60,000 units in 2023. The machine is subject to a 20% CCA rate, and LLL Inc.s year-end is December 31. What is the end of 2022 journal entry for the depreciation record under the units-of-production method? Select one: a. Debit Depreciation Expense $120,000; credit Accumulated Depreciation $120,000 b. Debit Accumulated Depreciation $2; credit Depreciation Expense $2 c. Credit the specific PPE accounts $45,000; debit Depreciation Expense $45,000 d. Debit Depreciation Expense $110,000; credit Accumulated Depreciation $110,000 5. LLL Inc. purchased a machine on October 1, 2022, for use in its factory. The business paid $450,000 for the machine and estimated that it has a useful life of 10 years, at the end of which time the machine is expected to have a residual value of $50,000. During its life, the machine is expected to produce 200,000 units. The machine produced 55,000 units in 2022 and 60,000 units in 2023. The machine is subject to a 20% CCA rate, and LLL Inc.s year-end is December 31. What is the journal entry of the depreciation record for the end of 2022, under the straight-line method? Select one: a. Credit the specific PPE accounts $45,000; debit Depreciation Expense $45,000 b. Debit Depreciation Expense $40,000; credit Accumulated Depreciation $40,000 c. Debit Accumulated Depreciation $10,000; credit Depreciation Expense $10,000 d. Debit Depreciation Expense $10,000; credit Accumulated Depreciation $10,000 6. An asset is considered identifiable if: Statement 1. It is separable, meaning it is capable of being separated from the company and sold. Statement 2. It emerges from contractual or legal rights, regardless of whether it is separable or transferable from the company. Select one: a. Neither statement is true b. Statement 1 only c. Both statements are true d. Statement 2 only 7. The cost of intangible assets of an intellectual nature is composed primarily of: Select one: a. The cost of labour hours to create the intellectual asset b. Purchase price to acquire the asset from another party c. Legal costs to register and defend the asset, and the purchase price to obtain rights from another party d. Real property 8. When depreciating assets, which of the following journal entries and impacts is correct? Select one: a. Debit Depreciation Expense; Credit the specific Long-term asset account; Equity decreases b. Debit Accumulated Depreciation; Credit Depreciation Expense; Equity decreases c. Debit Depreciation Expense; Credit Accumulated Depreciation; Equity decreases d. Debit Depreciation Expense; Credit Accumulated Depreciation; no change to Equity 9. Examine the depreciation table shown below. The depreciation method most likely being used is the: Year Book Value (Beginning of Year) Depreciation Expense Net Book Value (End of Year) 1 $10,000 $1,000 $9,000 2 9,000 2,000 7,000 3 7,000 1,000 6,000 4 6,000 3,000 3,000 5 3,000 500 2,500 Select one: a. Straight-line method b. Periodic method c. Double-declining-balance method d. Units-of-production method 10. When long-term assets with commercial substance are exchanged, how is a loss on the exchange recorded or calculated? Select one: a. The loss on exchange can be determined as the difference between the fair market value of the new asset received and the book value of the old asset given up plus cash paid on exchange. b. Loss on exchange of assets is debited for the loss on exchange amount as part of other expenses on the income statement. c. All the choices listed d. The loss on exchange can be determined as the difference between the fair market value (the trade-in allowance) of the asset given up and the book value of that asset