Fundamental Accounting Principles Volume 2 17th Edition By Kermit D. Larson test bank

      
       A) The length of time it is productively used in a company's operations    
       B) Another term for its residual value
       C) Measured by its potential inadequacy
       D) Is impossible to estimate
       E) All of the choices are correct
      






52)  Property, plant and equipment are

      
       A) Current assets
       B) Used in business operations
       C) Natural resources
       D) Long-term investments
       E) Never depreciated
      






53)  The original cost of an asset minus accumulated depreciation is called

      
       A) Historical cost     
       B) Book value
       C) Present value
       D) Current value
       E) Replacement cost
      






54)  Obsolescence

      
       A) Occurs when an asset is at the end of its useful life   
       B) Refers to a condition where a property, plant and equipment asset is no longer useful in producing goods and services
       C) Refers to a condition where the capacity of a property, plant and equipment asset is too small to meet the company's productive demands
       D) Is the same as inadequacy
       E) None of the choices are correct
      






55)  A leasehold

      
       A) Is a short-term rental agreement     
       B) Is not an intangible asset
       C) Refers to the rights granted to the lessee by the lessor in a lease
       D) Is initially recorded as rent expense
       E) Is an investment
      






56)  A method that allocates an equal portion of the total depreciation for a property, plant and equipment asset to each accounting period during its useful life is called

      
       A) Accelerated depreciation  
       B) Double-declining-balance depreciation
       C) Straight-line depreciation
       D) Units-of-production depreciation
       E) Capital cost allowance
      






57)  A method that allocates an equal portion of the total depreciation for a property, plant and equipment asset to each unit produced is called

      
       A) Accelerated depreciation  
       B) Double-declining-balance depreciation
       C) Straight-line depreciation
       D) Units-of-production depreciation
       E) Capital cost allowance
      






58)  A depreciation method in which a property, plant and equipment asset's depreciation expense for the period is determined by applying a constant depreciation rate each year to the asset's beginning book value is called

      
       A) Book value depreciation   
       B) Double-declining-balance depreciation
       C) Straight-line depreciation
       D) Units-of-production depreciation
       E) Capital cost allowance