Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1.
A business acquired land and two buildings for a single, lump-sum purchase price of $140,000. The land was assessed for tax purposes at $50,000 and the buildings at $30,000 and $20,000, respectively, for a total assessed value of $100,000. The land would be recorded at a cost of
A)$50,000
B)$70,000
C)$60,000
D)$140,000
2.
An asset having a four-year service life and a salvage value of $5,000 was acquired for $45,000 cash on June 28. The amortization expense at the end of the first year, December 31, will be
A)$10,000, using the straight-line method
B)$22,500, using the double declining-balance method
C)$7,000, using the straight-line method
D)$11,250, using the double declining-balance method
3.
Equipment costing $12,000 with accumulated amortization of $10,000 was sold for $1,000. Which of the following is correct?
A)Debit Cash $1,000, credit Loss on Disposal of Equipment $1,000.
B)Debit Cash $1,000, and Loss on Disposal of Equipment $1,000, credit Equipment $2,000.
C)Debit Cash $1,000, Loss on Disposal of Equipment $1,000, Accumulated Amort.. Equipment $10,000, and credit Equipment $12,000.
D)Debit Cash $2,000, credit Gain on Disposal of Equipment $2,000
4.
A car costing $25,000 with accumulated amortization of $17,000 was exchanged for an SUV costing $32,000. The trade-in value was $5,000. Which of the following is correct?
A)Debit SUV $27,000 and credit Cash $27,000.
B)Debit Accumulated Amort., Car $17,000 and Loss on Asset Exchange $8,000, and credit Car $25,000.
C)Debit SUV $32,000, Accumulated Amort., Car $17,000, credit Car $25,000, Cash $21,000, and Loss on Asset Exchange $3,000.
D)Debit SUV $32,000, Accumulated Amort., Car $17,000, Loss on Asset Exchange $3,000, credit Car $25,000, Cash $27,000.
5.
Equipment costing $14,000 with accumulated amortization of $10,000 was disposed of for $5,000. Which of the following is correct.
A)Debit Cash $5,000, credit equipment $4,000, and Gain on Disposal of equipment $1,000.
B)Debit Cash $5,000, Gain on Disposal of equipment $4,000, and credit Equipment $9,000.
C)Debit Cash $4,000, Gain on Disposal of equipment $1,000, credit Equipment $5,000
D)Debit Cash $5,000, Accumulated Amortization, equipment $10,000, credit Equipment $14,000, and Gain on Disposal of equipment $1,000.





To learn more about the book this website supports, please visit its Information Center.
(c)2005 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Accounting PrinciplesOnline Learning Center with Powerweb

Home > Chapter 12 > Multiple Choice Quiz