Exam Review Flashcard

Front

All but which of the following are acceptable depreciation methods under GAAP?
Options:
Straight-line,
Units of Production,
Amortization,
Double declining balance

Back

Amortization

Front

All but which of the following are amortized under GAAP?
Patents, Trademarks, Copyrights, Goodwill

Back

Goodwill

Front

Which of the following would be considered a capital expenditure?
Options:
Repairing a leaky roof
Replacing the brakes on a delivery van
Replacing the air conditioning system at the company headquarters
Weekly cleaning charges for the executive offices

Back

Replacing the air conditioning system at the company headquarters

Front

A company purchased equipment on 1/1/15 for $40,000, with an estimated 4 year life, to be used for a total of 24,000 baking hours, with a $4,000 residual value. She bakes for 4,000 hours in 2015 and 7,000 hours in 2016. What is her depreciation expense for 2016 if she uses units of production depreciation method?

Back

$10,500

Front

A company purchases equipment on 1/1/15 for $40,000, with an estimated 4 year life, to be used for a total of 24,000 baking hours, with a $4,000 residual value. She bakes for 4,000 hours in 2015 and 7,000 hours in 2016. What is her depreciation expense for 2016 if she uses Double Declining Balance method?

Back

$10,000

Front

Cainas Cookies purchases equipment on 1/1/15 for $40,000, to be used for a total of 72,000 baking hours, with a $4,000 residual value. Cainas uses a units of production depreciation method. She bakes for 5,000 hours in 2015 and 9,000 hours in 2016. On 1/1/17 she sells the equipment for $30,000. Which of the following is true?

Back

She sold the equipment at a loss of $3,000

Front

All but which of the following are amortized over the useful life of the asset?
Patent, Copyright, Franchise fees

Back

Research and Development

Front

Federal Income taxes payable, FUTA, and SUTA are all employer payroll tax expenses on a company’s books.

Back

False

Front

All of the following are considered current liabilities except for: unearned revenue, accounts payable, accrued payables, bonds payables

Back

bonds payables

Front

I decide I want to retire in 20 years, and plan to invest $6,000 a year. Assuming a 12% interest rate, to solve for how much I will have in my fund to retire with, I need to solve for: $6,000 (PV ann n = 20, I = 12%)

Back

false