Coal oil and timber are:a. amortized.b. depleted.c. depreciated.d. expensed.Assets that cannot be seen touched or held are called:a. intangible assets.b. natural resources.c. plant assets.d. tangible assets.Which of the following would be considered part of land improvements?a. Removal of unwanted building on the landb. Title transfer feesc. Paving of the parking lotd. Surveying feesIf an asset produces more revenue in its early years the depreciation method best suited for this asset would be the:a. expense method.b. units-of-production method.c. double-declining balance method.d. straight-line method.A company purchased a van at a cost of $42000 and expects its salvage value to be $6000 after 120000 miles of service. Using the units-of-production method what is the first year s depreciation if the van is driven 24000 miles?a. $ 1200b. $ 4200c. $ 7200 d. $12000Which accounting principal dictates whether the cost of a repair should be expensed?a. Conservatismb. Entityc. Objectivityd. MatchingIf an asset is being sold or exchanged the gain or loss is always computed by comparing the:a. market value and book value.b. market value and salvage value.c. book value and salvage value.d. market value and cost.Research and development costs (R&D) are generally:a. expensed and become part of the income statement.b. listed as other intangibles on the balance sheet.c. listed as current assets on the balance sheet.d. listed as long-term assets on the balance sheet.Cost divided by the total amount of the natural resource to be removed yields:a. depletion expense for the period.b. depletion rate per unit for the period.c. accumulated rate for the period.d. depreciation rate per unit for the period.Securities that are actively managed in order to maximize profit as a result of short-term changes in price are:a. trading securities.b. available-for sale securities.c. held-to-maturity securities.d. trading and held-to-maturity securities
