Homework Answers
Answer is False
Revenue expenditure is the expenditure which is incurred for regular operating and routine purpose. They do not provide material benefit beyond current year. They are charged to Income statement in the period in which they are incurred. For example: lubricants used in maintenance, spare parts used in repairing, etc. Only Capital expenditure provides material benefit extending beyond the current period and hence they are capitalized. For example expenditure which increases the life of the asset is capitalised. So answer is False.
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Revenue expenditures are additional costs of property, plant and equipment that provide material benefits extending beyond...
Which of the following statements about material errors involving property, plant, and equipment and intangible assets...
Which of the following statements about material errors involving property, plant, and equipment and intangible assets are true? (Select all that apply.) Check All That Apply A disclosure note is needed All related account balances must be corrected retained ning requires correction the correction is reported during Current period Previous years financial statements must be retrospectively restated A disclosure note is needed. All related account balances must be corrected. ロロロロロ If retained earnings requires correction, the correction is reported during...
1. Chapter 10: Revenue Expenditures vs Capital Expenditures gali A) DETERMINING COST OF PLANT ASSETS 1-...
1. Chapter 10: Revenue Expenditures vs Capital Expenditures gali A) DETERMINING COST OF PLANT ASSETS 1- Land Ex Assume that Hayes Company acquires real estate at a cash cost of $100,000. The property contains an old warehouse that is razed at a net cost of $6,000 ($7,500 in costs less $1,500 proceeds from salvaged materials). Additional expenditures are the attorney's fee, $1,000, and the real estate broker's commission, $8,000. 14 1235/42:37
5&6) Question 5 2 pts The acquisition costs of property, plant, and equipment should include all...
5&6)
Question 5 2 pts The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs to get the asset in place and ready for use. True False Question 6 2 pts The cost of replacing an engine in a truck is an example of ordinary maintenance. True False
Solve for the missing numbers. Total Liabilities And Equity ________, Revenue ________ , Gross Property, Plant...
Solve for the missing numbers. Total Liabilities And Equity
________, Revenue ________ , Gross Property, Plant & Equipment
________, Depreciation ________ , Inventory ________ , Net Income
________ , Interest Expense ________ , Goodwill ________ , Income
Taxes Payable ________ , Deferred Tax Liability, Non-Current
________ , Selling & Admin Expense 3,754, Retained Earnings
111, R & D Expense 31, Total Current Assets 4,967, Total
Liabilities 33,618, Other Operating Expense 74, Operating Income
2,403, Other Non-Current Liabilities 1,086, Other Current...
All property, plant, and equipment assets are depreciated over time. True False
All property, plant, and equipment assets are depreciated over time. True False
The main difference between intangible assets and property, plant, and equipment is the length of the...
The main difference between intangible assets and property, plant, and equipment is the length of the asset's life. O True O False
Long-term Investments Prepaid advertising Property, Plant, and Equipment Equipment Trademarks Intangible Assets Salaries and wages payable...
Long-term Investments Prepaid advertising Property, Plant, and Equipment Equipment Trademarks Intangible Assets Salaries and wages payable Current Liabilities Income taxes payable Current Liabilities Retained earnings Stockholders' Equity Current Assets Accounts receivable Property, Plant, and Equipment ÷ Land (held for future use) Patents Intangible Assets Bonds payable Current Liabilities Stockholders' Equity Common stock Accumulated depreciation-equipment Property, Plant, and Equipment Unearned sales revenue Long-term Investments Property, Plant, and Equipment Inventory
What costs are included in the initial cost of property, plant and equipment when they are...
What costs are included in the initial cost of property, plant and equipment when they are purchased? What is the rationale for including costs in addition to the purchase price of the asset?
Costs incurred by Mills Company that relate to its property, plant, and equipment assets might be...
Costs incurred by Mills Company that relate to its property, plant, and equipment assets might be recorded in one of the five following accounts: a. an expense account b. Accumulated Depreciation c. Land d. Building e. Equipment Required: For each of the costs identified below, indicate the type of account in which the cost should be recorded by placing the appropriate letter in the space provided. ____ 25. The legal fees associated with the acquisition of land. ____ 26....
Q1/ The transactions that follow are expenditures related to property, plant, and equipment: For each of...
Q1/ The transactions that follow are expenditures related to property, plant, and equipment: For each of the transactions, indicate the title of the account that you think should be debited in recording the transaction. 1. Operator controls on equipment were replaced for $7,370, because the original control devices were not adequate. Land ImprovementsVehiclesBuildingsEquipmentRepair and Maintenance Expense 2. A total of $5,013 was spent for decorative landscaping (planting flowers and shrubs, etc.). BuildingsLand ImprovementsRepair and Maintenance ExpenseEquipmentVehicles 3. A new air...
Which of the following statements about material errors involving property, plant, and equipment and intangible assets are true? (Select all that apply.) Check All That Apply A disclosure note is needed All related account balances must be corrected retained ning requires correction the correction is reported during Current period Previous years financial statements must be retrospectively restated A disclosure note is needed. All related account balances must be corrected. ロロロロロ If retained earnings requires correction, the correction is reported during...
1. Chapter 10: Revenue Expenditures vs Capital Expenditures gali A) DETERMINING COST OF PLANT ASSETS 1- Land Ex Assume that Hayes Company acquires real estate at a cash cost of $100,000. The property contains an old warehouse that is razed at a net cost of $6,000 ($7,500 in costs less $1,500 proceeds from salvaged materials). Additional expenditures are the attorney's fee, $1,000, and the real estate broker's commission, $8,000. 14 1235/42:37
5&6)
Question 5 2 pts The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs to get the asset in place and ready for use. True False Question 6 2 pts The cost of replacing an engine in a truck is an example of ordinary maintenance. True False
Solve for the missing numbers. Total Liabilities And Equity
________, Revenue ________ , Gross Property, Plant & Equipment
________, Depreciation ________ , Inventory ________ , Net Income
________ , Interest Expense ________ , Goodwill ________ , Income
Taxes Payable ________ , Deferred Tax Liability, Non-Current
________ , Selling & Admin Expense 3,754, Retained Earnings
111, R & D Expense 31, Total Current Assets 4,967, Total
Liabilities 33,618, Other Operating Expense 74, Operating Income
2,403, Other Non-Current Liabilities 1,086, Other Current...
The main difference between intangible assets and property, plant, and equipment is the length of the asset's life. O True O False
Long-term Investments Prepaid advertising Property, Plant, and Equipment Equipment Trademarks Intangible Assets Salaries and wages payable Current Liabilities Income taxes payable Current Liabilities Retained earnings Stockholders' Equity Current Assets Accounts receivable Property, Plant, and Equipment ÷ Land (held for future use) Patents Intangible Assets Bonds payable Current Liabilities Stockholders' Equity Common stock Accumulated depreciation-equipment Property, Plant, and Equipment Unearned sales revenue Long-term Investments Property, Plant, and Equipment Inventory
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