method of d in the first year will always A) The depreciation expense in the first in the first s. Whan comparing the units-ofoutput t method yoar will abways be tes 8) The depreciation expense in tho first Year C) The depreciation expense in the fire o greater tha D) The depreciation expense in the or less under the units-of-output method, may baas be which of the following is a capital expenditure? 6. of office A) Sales tax paid in conjunction with the costs lived assets, such as $12 to B) Monthly rent of a delivery truckpurchase C) Research and development cos D) Smal expenditures to purchase a wastebasket A) The undepreciated cost of the asset uipment B) The current replacement cost of the as C) The original cost of the asset D) The accumulated depreciation on the 7. The book value of an asset in the plant and set asset to date. 8. The term net identifiable assets means A) All assets minus all liabilities. assets except goodwill, minus all liabilities. B) All Al assets except intangibles, minus all liabilities. D) All fixed assets less liabilities. 9. Wth respect to depreciation policies, the principle of consist A) A company should use the same depreciation me methods in its statements that it uses in its income tax returns. companies in the same industry. year for a given plant asset. depreciation expense on all its assets. B) A company should use the same depreciation method as C) A company should use the same depreciation method from D)A company should use the same depreciation method in comp 10. Expenditures for research and development intended to lead to naw o of commercial value: A) Should be recorded as intangible assets and amo years in which benefits are expected. B) Should be charged to expense when incurres C) Should be capitalized only if patents are expected to D) Should be classified as deferred charges tized duig t