Homework Answers
Answer: True
Extraordinary repairs extend an asset's useful life beyond its original estimate.
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QUESTION 3 Repair work that generates a capital expenditure because it extends a plant asset's useful...
At the end of an asset's useful life, the balance in Accumulated Depreciation will: A. be...
At the end of an asset's useful life, the balance in Accumulated Depreciation will: A. be a greater amount under straight - line depreciation than under double declining -balance depreciation B. be greater under units - of - production depreciation than under straight - line depreciation C. be the same amount under all the depreciation methods D. be a lesser amount under double -declining -balance depreciation than under units of - production depreciation Depreciation computed under double - declining balance...
Non-current assets are any liabilities that are used in the operations of a business. TRUE:☐ FALSE:☐ 2....
Non-current assets are any liabilities that are used in the operations of a business. TRUE:☐ FALSE:☐ 2. The cost of an asset includes all normal and reasonable expenditures necessary to get it in place and ready for its intended use. TRUE:☐ FALSE:☐ 3. Depreciation is the process of allocating the cost of a tangible asset in a rational and systematic manner over the asset's estimated useful life. TRUE:☐ FALSE:☐ 4. Residual value is an estimate of an asset's value at the end of...
QUESTION 1 The following information relates to three possible capital expenditure projects. Because of capital rationing,...
QUESTION 1 The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepted. The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepted. Project A Project B Project C Initial cost R400 000 R460 000 R360 000 Expected life 5 years 5 years 4 years Expected scrap value R20 000 R30 000 R16 000 Expected net cash inflows: R R R...
Question 3 McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will...
Question 3 McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $542,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $74,500. Project B will cost $338,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $48,000. A discount rate of 7% is appropriate for both...
Question 27 To be classified as a capital expenditure the cost must do what? Not yet...
Question 27 To be classified as a capital expenditure the cost must do what? Not yet answered Marked out of 1.00 Select one: O a. involve long term repairs to an asset b. affect only a piece of machinery or equipment Flag question c. be directly related to a capital account O d. improve or better an existing plant asset Question 28 Which of the following is NOT a current asset? Not yet answered Marked out of 1.00 Select one:...
4. CAPITAL INVESTMENT DECISIONS The following information relates to three possible capital expenditure projects. Because of...
4. CAPITAL INVESTMENT DECISIONS The following information relates to three possible capital expenditure projects. Because of capital rationing only one project can be accepted. Project A Project B Project C Initial Cost $230,000 $250,000 $190,000 Expected life 5years 5 years 4 years Scrap value expected $10,000 $15,000 $10,000 Expected Cash Inflows: $ $ $ End Year 1 85,000 95,000 45,000 End Year 2 70,000 70,000 65,000 End Year 3 65,000 55,000 95,000 End Year 4 60,000 50,000 100,000 End Year...
QUESTION 1 The total area under the normal curve can never be known a. TRUE b....
QUESTION 1 The total area under the normal curve can never be known a. TRUE b. FALSE QUESTION 2 If a population is known to be normally distributed, the shape of the corresponding x-bar curve will be a. exactly normal b. approximately normal c. Non-normal d. depends on the sample size QUESTION 3 The fact that values such as sample averages and sample proportions will be different from sample to sample is an example of a. standard deviation b. population...
QUESTION 1 The following information relates to three posible capital expenditure projects. Because of capital rationing...
QUESTION 1 The following information relates to three posible capital expenditure projects. Because of capital rationing only one project can be accepted Initial Cost Expected Life Scrap Value Expected Expected Cash Inflows Ghc200,000.00 5 years Ghc 10,000.00 Ghe 80,000.00 70,000.00 65,000.00 60,000.00 55,000.00 Ghc230,000.00 Ghc180,000.00 5 years Ghc15,000.00 Ghc8,000.00 Ghc 55,000.00 65,000.00 95,000.00 100,000.00 Ghe 100,000.00 70,000.00 50,000.00 50,000.00 50,000.00 ear ear ear ear ear The company's estimated cost of capital is 18% Calculate a) b) c) d) The pay...
Question 2: (16 marks) Wastewater Ltd acquired an item of plant on 1 July 2016 for...
Question 2: (16 marks) Wastewater Ltd acquired an item of plant on 1 July 2016 for $3 660 000. When the item of plant was acquired, it was initially assessed as having a life of 10000 hours. During the reporting period ending 30 June 2017 the plant was operated for 3000 hours. At 1 July 2017 the plant had a remaining useful life of 7000 hours. On 1 July 2017 the plant underwent a major upgrade costing $234 600. Management...
QUESTION 1 An Indemnity may be satisfied by: Cash Payment Replacement of what was damaged Repair...
QUESTION 1 An Indemnity may be satisfied by: Cash Payment Replacement of what was damaged Repair of what was damaged All of the above QUESTION 2 The Financing form where a company receives funding to purchase materials to satisfy a customer order is called: Secured Loan Factoring Bank Loan Purchase Order Factoring QUESTION 3 None of the owners of a company that receives a SBA 7(a) loan are required to provide personal guarantees. True False ĚO OOO The SBA acts...
At the end of an asset's useful life, the balance in Accumulated Depreciation will: A. be a greater amount under straight - line depreciation than under double declining -balance depreciation B. be greater under units - of - production depreciation than under straight - line depreciation C. be the same amount under all the depreciation methods D. be a lesser amount under double -declining -balance depreciation than under units of - production depreciation Depreciation computed under double - declining balance...
QUESTION 1 The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepted. The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepted. Project A Project B Project C Initial cost R400 000 R460 000 R360 000 Expected life 5 years 5 years 4 years Expected scrap value R20 000 R30 000 R16 000 Expected net cash inflows: R R R...
Question 3 McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $542,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $74,500. Project B will cost $338,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $48,000. A discount rate of 7% is appropriate for both...
Question 27 To be classified as a capital expenditure the cost must do what? Not yet answered Marked out of 1.00 Select one: O a. involve long term repairs to an asset b. affect only a piece of machinery or equipment Flag question c. be directly related to a capital account O d. improve or better an existing plant asset Question 28 Which of the following is NOT a current asset? Not yet answered Marked out of 1.00 Select one:...
QUESTION 1 The following information relates to three posible capital expenditure projects. Because of capital rationing only one project can be accepted Initial Cost Expected Life Scrap Value Expected Expected Cash Inflows Ghc200,000.00 5 years Ghc 10,000.00 Ghe 80,000.00 70,000.00 65,000.00 60,000.00 55,000.00 Ghc230,000.00 Ghc180,000.00 5 years Ghc15,000.00 Ghc8,000.00 Ghc 55,000.00 65,000.00 95,000.00 100,000.00 Ghe 100,000.00 70,000.00 50,000.00 50,000.00 50,000.00 ear ear ear ear ear The company's estimated cost of capital is 18% Calculate a) b) c) d) The pay...
Question 2: (16 marks) Wastewater Ltd acquired an item of plant on 1 July 2016 for $3 660 000. When the item of plant was acquired, it was initially assessed as having a life of 10000 hours. During the reporting period ending 30 June 2017 the plant was operated for 3000 hours. At 1 July 2017 the plant had a remaining useful life of 7000 hours. On 1 July 2017 the plant underwent a major upgrade costing $234 600. Management...
QUESTION 1 An Indemnity may be satisfied by: Cash Payment Replacement of what was damaged Repair of what was damaged All of the above QUESTION 2 The Financing form where a company receives funding to purchase materials to satisfy a customer order is called: Secured Loan Factoring Bank Loan Purchase Order Factoring QUESTION 3 None of the owners of a company that receives a SBA 7(a) loan are required to provide personal guarantees. True False ĚO OOO The SBA acts...
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