purposes of capitalizing borrowing cost, a qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Which of the following is not a qualifying asset?

Allocating the cost of a natural resource to the units removed is called amortization. True False 2.Costs incurred to acquire long-lived assets are capital expenditures. True False 3.Accumulated depreciation, as used in accounting, may be defined as: o An expense of doing business. o Funds (or cash) set aside to replace the asset being depreciated. o portion of the cost of plant asset recognized as expense since asset was acquired. o Earnings retained in the business.4.  On January 1, 1999, Ubot Inc. purchased a piece of equipment for $60,000. It is estimated to have an economic life of 5 years and a salvage value of $10,000. The 200% declining-balance method for depreciation is used. What is the book value of the asset at the end of year 2000 ? A. o $24,000 B. o $40,000 C. o $36,000 D. o $21,600 5.It is not necessary to disclose the maturity dates of long-term obligations on the financial statements. True False   6.The…

TRUE OR FALSE The term used to describe the mechanical process of allocating the cost of an intangible asset to expense over the shorter of the legal life or estimated useful life is called amortization.

Property, plant and equipment (fixed assets) assets are depreciated because:   a. The accrual basis of accounting requires matching of costs to revenues.   b. Cash basis of accounting requires depreciation.   c. The book values equal market values.   d. The replacement cost of plant assets may fluctuate over time.

Which of the following is not a capital expenditure decision Select one: a. Improvement in fixed asset b. Purchase of goodwill c. None of the options d. Replacement in fixed asset e. R&D Expenditure

One factor that is not considered in determining the useful life of an intangible asset is * Residual value Provision for renewal or extension Expected action of competitors Legal life When a patent is amortized, the credit is usually made to * The patent account As accumulated amortization account An expense account An accumulated depreciation account A trademark is an example of which category of intangible asset? Artistic-related Contract-based Customer-related Market-related Which is a research and development cost? * Research and development performed under contract for others Development or improvement of technique and process Offshore oil exploration that is the primary activity of an entity Market research related to a major product for the entity O O O O O O O O

The adjusted cost base (or capital cost) of an asset includes a number of costs. Indicate which cost would NOT be considered part of the capital cost. A) Legal fees incurred to acquire the asset. B) Duties paid on the asset. C) Fire and theft insurance paid on the asset. D) Non-refundable provincial sales taxes paid on the asset. E) An appropriate allocation of overhead.

A long-term asset that is retired from operations and held for disposal or sale is valued at ________. Group of answer choices value in use replacement cost lower of cost or market lower of carrying value or net realizable value