Self Assessment Quizzes

CHAPTER 23: Section 1 Plant Assets and Equipment

	1.	Allocating the cost of a plant asset over it`s useful life is called

		a.	depreciation
		b.	allocation
		c.	estimated useful value
		d.	estimated useful life

	2.	A plant asset that should not be depreciated is

		a.	buildings
		b.	land
		c.	store equipment
		d.	delivery equipment

	3.	The equal distribution of depreciation expense over the assets useful life is called the

		a.	equality method
		b.	straight-line method
		c.	sum- of-the-years`- digits method
		d.	five year method

	4.	The estimated value of a plant asset at its replacement time is called

		a.	disposal value
		b.	replacement value
		c.	estimated value
		d.	actual value

	5.	Useful life measured in units of use rather than time is called the

		a.	useful life method
		b.	straight use method
		c.	declining balance method
		d.	units-of-production method

	6.	One of the factors used to calculate depreciation is

		a.	estimated disposal value of the asset
		b.	the cost of delivery charges
		c.	the total number of plant assets
		d.	how far the drive to work is

	7.	The number of years an asset is expected to be used before it wears out is called its

		a.	life expectancy
		b.	term
		c.	estimated useful life
		d.	estimated life expectancy

	8.	Current Assets consist of assets such as

		a.	cash, delivery equipment, and merchandise
		b.	cash, accounts receivable, and store equipment
		c.	cash, accounts receivable, and merchandise
		d.	cash, accounts payable, accounts receivable, and merchandise

	9.	Long-lived or plant assets include

		a.	land, buildings, merchandise, and equipment
		b.	land, merchandise, equipment and cash
		c.	land merchandise, accounts receivable and equipment
		d.	land, buildings, and equipment