Accounting Chapter 15

Front

Is the annual straight-line depreciation expense of a plant asset calculated as the original cost of the plant asset divided by the years of estimated useful life?

Back

False

Front

Estimated federal income tax must be paid in monthly installments.

Back

False

Front

All accounts are listed on the unadjusted trial balance regardless of whether there is a balance or not.

Back

True

Front

Functional depreciation should be considered in estimating the useful life of computer equipment.

Back

True

Front

For a business using the periodic inventory method, purchases are recorded in the Merchandise Inventory account.

Back

False

Front

The Income Summary account is one of the accounts used to adjust the Merchandise Inventory account at the end of the fiscal period.

Back

True

Front

The annual straight-line depreciation of equipment costing $7,000.00 with a salvage value of $1,000.00 and a useful life of 5 years would be $1,400.00.

Back

False

Front

The value of the insurance coverage used is recorded as a debit to Insurance Expense.

Back

True

Front

The book value of a plant asset is its original cost minus accumulated depreciation.

Back

True

Front

For a business using the periodic inventory method, does the balance of Merchandise Inventory in the unadjusted trial balance represent the beginning balance plus all purchases of merchandise made in the fiscal period?

Back

False