Long-lived assets

Long-lived assets may be...

• only tangible

• tangible or intangible

• tangible, intangible or financial assets

• only intangible

Investment property is most likely to:

• earn rent.

• be held for resale.

• be used in the production of goods and services.

Which of the following characteristics is most likely to differentiate investment property from property, plant, and equipment?

• It is tangible.

• It earns rent.

• It is long-lived.

Amortization method which has a higher allocation of cost

to the earlier years of the equipment’s life.

• Straight-line method

• Units-of-production method

• Double-declining balance method

Investment property is most likely to:

• earn rent.

• be held for resale.

• be used in the production of goods and services.

Intangible assets with finite useful lives mostly differ from intangible assets with infinite useful lives with respect to accounting treatment of:

• revaluation.

• impairment.

• amortization.

Leases can _________ the risks of obsolescence, residual value, and disposition to the _________ because the lessee does not own the asset.

• increase - lessor

• reduce - lessor

• reduce - lessee

Property, plant, and equipment is:

• a tangible asset with an economic life of longer than one year and intended to be held for the company’s own use.

• a tangible asset with an economic life of shorter than one year and intended to be held for the company’s own use.

• a liability with an economic life of longer than one year and intended to be held for the company’s own use.