7.

How are tangible and intangible assets respectively presented on the balance sheet?

a.Both are presented as property, plant, and equipment.

b.They are listed separately as tangible assets and intangible assets.

c.Neither are presented on the balance sheet.

d.They are listed separately as property, plant, and equipment and intangible assets.

8.

In regard to discarding fixed assets, which of the following is not true?

a.Recorded depreciation should be brought up to date before removing the asset from the accounting records.

b.If a fixed asset is no longer used and has no residual value, it should be written off.

c.Full depreciation should be recorded and no loss recognized with an asset that is discarded rather than sold.

d.If a fixed asset is no longer used and has no residual value, it is discarded.

17.

Which of the following statements is true regarding goodwill?

a.Goodwill is amortized based on a 10-year period.

b.If the purchase price of a business exceeds the fair value of its net assets, the excess is recorded as goodwill.

c.Goodwill is the exclusive use of a name, term, or symbol used to identify a business or its product.

d.Goodwill is amortized based on the lesser of the useful life or the legal life.

18.

The denominator in the fixed asset turnover ratio is the

a.Average Book Value of Fixed Assets.

b.Dollar Amount of Fixed Assets at the Beginning of the Year.

c.Average Net Realizable Value of Fixed Assets.

d.Dollar Amount of Fixed Assets at the End of the Year.

19.

All except which of the following will be included in the cost of a fixed asset?

a.Freight costs

b.Cost of installing equipment

c.Mistakes in installation

d.Direct costs of new construction