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Answer the follow accounting questions:1. Expenditures that are recorded as expenses when incurred arecalled:...

Answer the follow accounting questions:

1. Expenditures that are recorded as expenses when incurred are called:

a)Capital Expenditures

B) REvenue expenditures

C)research and development costs

D)intangible expensitures

2)Expenditures for Plant Assets that will be used by a company for more than one year are termed:

a)Capital Expenditures

B) REvenue expenditures

C)research and development costs

D)intangible expensitures

3. Tangible property intended to b e used by a company for more than one year would be labeled as

a)Capital Expenditures

B) REvenue expenditures

C)research and development costs

D)intangible expensitures

4. To adjust the value of a planet asset, one must calculate and record:

a)depletion expense

b)depreciation expense

c)amortization expense

d)plant asset expense

5.Assets which have a cost and which are sueful to a company for more than on year but lack physical substance (such as a patent or copyright) are reported in the asset section of the Balance sheet as

a)Current assets

b)property, plant and equipment

c)other asstes

d)intangible assets

6.To record the cost of removing natural resources from the land, a company would calculate and report:

A)depletion expense

B)depreciation expense

C)amortization expense

D)research and developement expense

7.Research & Development costs which might lead to new products should be recorded as:

a)plant seets

b)intangible assets

C)expenses

d)liabilities

8.To reduce the value of an Intangible Asset, a company would record an adjusting entry to calculate & report:

A)depreciation expense

b)amortization expense

C)depletion expense

D) research and development expense

9)Three ways that a company may dispose of a plant asset are:

a)discard, sell, trade-in

B)hide,displse, bury

C)depreciate,amortize,deplete

D)donate,absorb,lance

10)

The initial cost of a plant asset less its' accumulated depreciation is called:

A)depreication cost

b)book value

C)net value

D)fair market value

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Answer #3

ANSWERS :


1.  B. Revenue expenditure.


(During operation period , expenditures occur and recorded as incurred.

Such expenses are revenue expenditures).


2. a. Capital expenditures.


(Expenditures on plant Assets meant for use for more than a year are termed as Capital expenditures)


3. a. Capital expenditures. 


(Expenditures on Tangible Assets meant for use for more than a year are termed as Capital expenditures)


4. b. Depreciation expense.


(This is needed to be calculated to adjust the value of the fixed assets to know the book value).


5. d. Intangible assets.


(Assets (for use for more than a year) which have no physical existence are intangible assets).


6. A. Depletion expense.


(This is applicable for mines etc. where reserves get reduced as mining is carried out and materials are extracted over a period more than a year).


7.  A. Intangible assets. 


(R&D costs for development of new products are not physical assets, hence, are considered as intangible assets)


8. b. Amortisation expense.


(Intangible assets are amortised).


9. a. Discard, sell, trade-in .


(Plant assets are disposed off by discard ( zero value) or by selling , if still useful, or using in a new  project  (trade-in) ).


10. b. book value


(Origin cost - accumulated depreciation is book value of the plant assets).




answered by: Tulsiram Garg
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Answer #2
Capital expenditures
answered by: Fatou
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