Question : 111. U.S. GAAP authoritative guidance requires that financial statements report depreciation : 1245649

111. U.S. GAAP authoritative guidance requires that financial statements report depreciation charges based on _____ estimates; in practice, the _____ method is the most common. 
A. aggressive; straight-line (time)
B. reasonable; straight-line (time)
C. aggressive; straight-line (use)
D. reasonable; straight-line (use)
E. reasonable; accelerated

112. Recording periodic depreciation and amortization results in a  
A. debit to an expense account, only
B. debit to a product cost account, only.
C. debit to either an expense account or a product cost account.
D. credit to either an expense account or a product cost account.
E. credit to an expense account, only.

113. Depreciation of factory buildings and equipment used in manufacturing operations become(s)  
A. part of the cost of work-in-process inventories.
B. part of the cost of finished goods inventories.
C. product costs.
D. all of the above.
E. none of the above.

114. The amortization of a customer list are 
A. product costs.
B. period costs.
C. not required under U.S. GAAP.
D. not required under IFRS.
E. pay back costs.

115. The recording of amortization of intangibles generally results in a  
A. credit directly to the asset account that is being amortized.
B. debit directly to the asset account that is being amortized.
C. credit a contra-asset account called Accumulated Amortization.
D. debit a contra-asset account called Accumulated Amortization.
E. none of the above

116. The entry to record periodic depreciation of $4,500 on office facilities is as follows:  
A. Depreciation (or Administrative) Expense . . . . . . . . . . . . . . . .   4,500
  Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
B. Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
  Depreciation (or Administrative) Expense . . . . . . . . . . . . . . . . . . . . . . 4,500
C. Depreciation (or Administrative) Expense . . . . . . . . . . . . . . . .   4,500
  Office Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
D. Office Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
  Depreciation (or Administrative) Expense . . . . . . . . . . . . . . . . . . . . . . 4,500
E. none of the above

117. The entry to record patent amortization of $4,500 embedded in a product is as follows:  
A. Work-in-Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . .  4,500
  Patent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
B. Finished Goods Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
  Patent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500 
C. Work-in-Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . .  4,500
  Allowance for Amortization of Patent . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
D. Finished Goods Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500 
  Allowance for Amortization of Patent . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
E. none of the above

118. The entry to record amortization of a customer list in the amount of $4,500 is as follows:  
A. Amortization (or Selling) Expense . . . . . . . . . . . . . . . . . . . . . . . 4,500
  Customer List  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
B. Finished Goods Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
  Customer List  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500  
C. Work-in-Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . .  4,500
  Customer List  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500 
D. Amortization (or Selling) Expense . . . . . . . . . . . . . . . . . . . . . . . 4,500 
  Allowance for Amortization of Customer List . . . . . . . . . . . . . . .. . . . . 4,500
E. Work-in-Process Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . .  4,500 
  Allowance for Amortization of Customer List . . . . . . . . . . . . . . .. . . . . 4,500

119. The Work-in-Process Inventory account is _____. Product costs accumulate in the Work-in-Process Inventory account until the firm completes the goods and transfers them to _____.  
A. an asset; Finished Goods Inventory
B. a liability; Finished Goods Inventory
C. an asset; Cost of Goods Sold
D. a liability; Cost of Goods Sold
E. produced capital; Cost of Goods Sold

120. The original depreciation or amortization schedule for long-lived assets sometimes requires changing. Which of the following is/are not true? 
A. Each period a firm must evaluate its estimates of service life and assess if these estimates require changing in light of new information.
B. Each period a firm must evaluate its estimates of salvage value and assess if these estimates require changing in light of new information.
C. The firm makes no adjustment for the inaccurate estimates but spreads the remaining carrying value less the new estimate of salvage value over the new estimate of the remaining service life of the asset.
D. If changing from the old estimates to the new estimates would have a material impact, the firm must change the depreciation or amortization schedule retroactively.
E. none of the above