1. All of the following are considered fixed assets EXCEPT building. Truck. Land. accounts receivable. 2. If a purchased item is long-lived but not used in normal operations, the asset is classified and recorded as a(n) fixed asset. Investment Expense. contra asset. 1. All of the following fixed assets are depreciated EXCEPT building. Truck. Land. equipment. 2. The difference between a fixed asset’s initial cost and residual value is known as its depreciable cost. book value. accumulated depreciation. net revenue 3. Which of the depreciation methods is called an accelerated depreciation method? Straight-line method Double-declining-balance method Units-of-activity method All of these choices are correct. 4. The journal entry to record costs related to extraordinary repairs would include a __________ to __________. credit; Accumulated Depreciation debit; Accumulated Depreciation debit; Cash credit; the respective asset account 1. Assume that equipment acquired at a cost of $10,000 is fully depreciated. On June 30, the equipment is discarded. The entry to record the discard would be to debit __________ and credit __________. Equipment; Accumulated Depreciation—Equipment Accumulated Depreciation—Equipment; Equipment Equipment; Depreciation Expense—Equipment Accumulated Depreciation—Equipment; Depreciation Expense—Equipment 2. The entry to record the sale of equipment at book value would include a __________ to __________. debit; Loss on Sale of Equipment credit; Cash debit; Accumulated Depreciation credit; Accumulated Depreciation 1. Which of the following is NOT a characteristic of natural resources? Removed for sale Exist physically Naturally occurring Removed and sold over more than one year 2. The journal entry to record depletion would include a __________ to __________. debit; Depletion Expense credit; Depletion Expense debit; Accumulated Depreciation credit; Natural Resource Expense
