MIA07
May 9, 2012, 07:19 PM
1. When purchasing land, the costs for clearing,draining, filling, and grading should be charged to a Land Improvement account. (True or False)
2. Land Improvements are generally charged to the Land Account. (True or False)
3. The book value of a plant asset is always equal to its fair market value (True or False)
4. The depreciable cost of a plant asset is always equal to its fair market value (True or False)
5. In calculating depreciation, both plant asset cost and useful life are based on estimates. (True or False)
6. Under the double-declining-balance method, the depreciation rate used each year remains constant. (True or False)
7. If the proceeds from the sale of a plant asset exceed its book value, a gain on disposal. (True or False)
8. A loss on disposal of a plant asset can only occur if the cash proceeds received from the asset sale is less than the assets book value. (true or False)\
9. If a contingency is only reasonably possible ( it could happen) and the amount is reasonably estimable, the liability should be recorded in the accounts. (True or False)
10. A current liability is a debt with two key features:(1) it can reasonably be expected to be paid from existing current assets or through the creation of other current liabilities, and (2) it will be paid within one year of the operating cycle, whichever is longer. (True or False)
11. Unearned revenues are an asset and represent revenues that are received before goods are delivered or services are rendered. (True or False)
12. Liquity refers to the ability to pay maturing obligations and meet unexpected needs for cash. (True or False)
13. Each of the following represents a separate expense of the employer: (1) gross pay, (2) FICA taxes, (3) state unemployment taxes, (4) federal unemployment taxes, (5) net pay. (True or False)
14. Current liabilities are expected to be paid within one year of the operating cycle, whichever is longer.(True of False)
15. Most notes are not interest bearing (True or False)
16. Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks. (True or False).
17. The employer incurs a payroll tax expense equal to the amount withheld from the employee wages for federal income taxes.(True or False)
18. FICA taxes are a deduction from employee earnings and are also imposed upon employers as an expense. (True or False)
2. Land Improvements are generally charged to the Land Account. (True or False)
3. The book value of a plant asset is always equal to its fair market value (True or False)
4. The depreciable cost of a plant asset is always equal to its fair market value (True or False)
5. In calculating depreciation, both plant asset cost and useful life are based on estimates. (True or False)
6. Under the double-declining-balance method, the depreciation rate used each year remains constant. (True or False)
7. If the proceeds from the sale of a plant asset exceed its book value, a gain on disposal. (True or False)
8. A loss on disposal of a plant asset can only occur if the cash proceeds received from the asset sale is less than the assets book value. (true or False)\
9. If a contingency is only reasonably possible ( it could happen) and the amount is reasonably estimable, the liability should be recorded in the accounts. (True or False)
10. A current liability is a debt with two key features:(1) it can reasonably be expected to be paid from existing current assets or through the creation of other current liabilities, and (2) it will be paid within one year of the operating cycle, whichever is longer. (True or False)
11. Unearned revenues are an asset and represent revenues that are received before goods are delivered or services are rendered. (True or False)
12. Liquity refers to the ability to pay maturing obligations and meet unexpected needs for cash. (True or False)
13. Each of the following represents a separate expense of the employer: (1) gross pay, (2) FICA taxes, (3) state unemployment taxes, (4) federal unemployment taxes, (5) net pay. (True or False)
14. Current liabilities are expected to be paid within one year of the operating cycle, whichever is longer.(True of False)
15. Most notes are not interest bearing (True or False)
16. Internal control over payroll is not necessary because employees will complain if they do not receive the correct amount on their payroll checks. (True or False).
17. The employer incurs a payroll tax expense equal to the amount withheld from the employee wages for federal income taxes.(True or False)
18. FICA taxes are a deduction from employee earnings and are also imposed upon employers as an expense. (True or False)