.IMULIIPLE CHUICE (5 points) Instructions -please read each question closely and circle the best answer. 1. All of the following are intangible assets except a. patents. oil deposits. goodwill franchises. C. d. 2. A company purchased land for $120,000 cash. Real estate brokers' commission was $13.00 was spent for demolishing an old building on the land before construction of a new building c the historical cost principle, the cost of land would be recorded at: a. $140,000. $153,000. c. $120,000. d. $133,000. 3. The receivable that is usually evidenced by a formal instrument of credit is a(n) a. b. ote receivable. c. accounts receivable. trade receivable. d. income tax receivable. 4. The term "receivables" refers to a. amounts due from individuals or companies. b. merchandise to be collected from individuals or companies. cash to be paid to creditors. cash to be paid to debtors. c. d. 5. Which of the following assets does not decline in service poter a. Equipment b. Furnishings Land Fixtures c. d. 6. Costs incurred to increase the operating efficiency or useful life of a plant asset are referred a. capital expenditures. b. expense expenditures. c. ordinary repairs. d. revenue expenditures