For which of the following ratios does "the higher, the better" apply?

Both Asset Turnover & Return on Assets

In terms of amortization, franchises are ___.

not amortized, as they have an indefinite life.

When depreciation is revised, the:

Book Value should be written off over the remaining life.

Which of the following would not be included when calculating the value of Homer's new truck?

The cost of repairing it when Homer damaged it blowing snow

Which of the following would be a capital expenditure?

Homer gets the engine in his truck overhauled.

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BAT CH 9 TEST REVIEW

14 termsStudBud Administration117 plays

Capital Assets

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Questions 14

Answers

1
For which of the following ratios does "the higher, the better" apply?
Both Asset Turnover & Return on Assets
Neither Asset Turnover nor Return on Assets
Asset Turnover
Return on Assets
2
The most commonly used depreciation method is:
double-declining balance
units of output
straight-line
declining balance
3
Which of the following is not a capital asset?
Truck
Merchandise Inventory
Land
Land Improvements
4
In terms of amortization, franchises are ___.
amortized over their legal life.
amortized over the shorter of their legal or useful lives.
not amortized, as they have an indefinite life.
amortized over their useful life.
5
Cost - Estimated Salvage Value = ____
Accumulated Depreciation
Depreciation Expense
Net Book Value
Depreciable Amount
6
A machine for making Squishie Drinks at the Kwik-E-Mart would be protected by a:
copyright
none of these
patent
trademark
7
Ned buys land and a building for one price. This is called a __ purchase.
Single
Group
Basket
Combination
8
Which depreciation method must be used for tax purposes in Canada?
Straight line
Units of Activity
Diminishing Value
Double-Diminishing Value
9
Which of the following methods is used to account for the depletion of natural resources?
Diminishing balance
Units of activity
Straight-line
Double-declining balance
10
When depreciation is revised, the:
Original cost should be written off over the remaining life.
Book Value should be written off over the total useful life.
Cost should be written off over the total useful life.
Book Value should be written off over the remaining life.
11
Which of the following would not be included when calculating the value of Homer's new truck?
The "sticker price" of the truck
The cost of repairing it when Homer damaged it blowing snow
The cost of delivery
The cost of painting "Mr. Plow" on the doors
12
Which of the following would be a capital expenditure?
Homer gets his truck detailed.
Homer gets the oil in his truck changed.
Homer gasses up his truck.
Homer gets the engine in his truck overhauled.
13
Goodwill can only be recognized when a business:
is purchased.
has a stellar reputation for customer service.
consistently reports above-average profits.
has a favourable location.
14
Homer wrote a song to record with the B-Sharps. Homer should ensure it is protected by a(n):
copyright
patent
none of the above
trademark

BAT CH 9 TEST REVIEW Flashcards | StudBud