ame: - 15. Which of the following is included in the cost of constructing a building?...

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ame: - 15. Which of the following is included in the cost of constructing a building? a. cost of paving parking lot b. cost of repairing vandalism damage during construction c. insurance costs during construction d. cost of removing the demolished building existing on the land when it was purchased 16. Which one of the following below reflects a weak internal control system? a. all employees are well supervised b. all employees must take their vacations C. a single employee is responsible for comparing a receiving report to an invoice d. a single employee is responsible for collecting and recording of cash 17. The formula for net book value is depreciable cost = initial cost initial cost-residual value a. b. initial cost-accumulated depreciation initial cost + residual value d. 18. When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is a. declining-balance b. straight-line c. units-of-production d. MACRS 19. One of the weaknesses of the direct write-off method is that it a. is based on estimates b. is too difficult to use for many companies C. violates the matching principle d. understates accounts receivable on the balance sheet 20. Allowance for Doubtful Accounts is listed on the balance sheet under the caption a. fixed assets b. current assets C. investments d. stockholders' equity ID: A 21. A fixed asset with a cost of $30,000 and accumulated depreciation of $26,500 is sold for $5,000. What is the amount of the gain or loss on disposal of the fixed asset? $1,500 loss a. b. $2,000 gain C. $1,500 gain d. $2,000 loss ame: - 15. Which of the following is included in the cost of constructing a building? a. cost of paving parking lot b. cost of repairing vandalism damage during construction c. insurance costs during construction d. cost of removing the demolished building existing on the land when it was purchased 16. Which one of the following below reflects a weak internal control system? a. all employees are well supervised b. all employees must take their vacations C. a single employee is responsible for comparing a receiving report to an invoice d. a single employee is responsible for collecting and recording of cash 17. The formula for net book value is depreciable cost = initial cost initial cost-residual value a. b. initial cost-accumulated depreciation initial cost + residual value d. 18. When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is a. declining-balance b. straight-line c. units-of-production d. MACRS 19. One of the weaknesses of the direct write-off method is that it a. is based on estimates b. is too difficult to use for many companies C. violates the matching principle d. understates accounts receivable on the balance sheet 20. Allowance for Doubtful Accounts is listed on the balance sheet under the caption a. fixed assets b. current assets C. investments d. stockholders' equity ID: A 21. A fixed asset with a cost of $30,000 and accumulated depreciation of $26,500 is sold for $5,000. What is the amount of the gain or loss on disposal of the fixed asset? $1,500 loss a. b. $2,000 gain C. $1,500 gain d. $2,000 loss

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