Chapter 09 – Long-Term Assets: Fixed and Intangible
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Page 90
POINTS:
1
DIFFICULTY:
Bloom’s: Applying
Moderate
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.09–01 – LO: 09–01
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.13 – Long-term Assets Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG – Analytic
DATE CREATED:
10/4/2017 12:47 PM
DATE MODIFIED:
10/16/2017 5:33 PM
228. On April 15, Compton Co. paid $2,800 to upgrade a delivery truck and $125 for an oil change. What account(s)
would be debited for the upgrade to delivery truck and oil change?
a.
Delivery Truck
b.
Repairs and Maintenance Expense
c.
Delivery Truck and Repairs and Maintenance Expense
d.
Repairs and Maintenance Expense and Truck Repairs Expense
ANSWER:
c
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.09–02 – LO: 09–02
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.13 – Long-term Assets Reporting
ACCT.AICPA.FN.03 – Measurement
BUSPROG – Analytic
DATE CREATED:
10/4/2017 12:50 PM
DATE MODIFIED:
10/16/2017 5:33 PM
229. XYZ Co. incurred the following costs related to the office building used in operating its sports supply company:
(1)
Replaced a broken window.
(2)
Replaced the roof that had been on the building 23 years.
(3)
Serviced all the air conditioners before summer started.
(4)
Replaced the air conditioners in the customer service areas.
(5)
Added a warehouse to the back of the building.
(6)
Repainted the interior walls.
(7)
Installed window shutters on all windows.
Which expenditures would be classified as capital expenditures?
a.
1, 3, 6, and 7
b.
2, 4, 5, and 7
c.
1, 4, 5, and 6
d.
2, 3, 5, and 6
ANSWER:
b
