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UARK ACCT Exam 3 With Complete Solutions 100% Verified!!, Exams of Accounting

UARK ACCT Exam 3 With Complete Solutions 100% Verified!!

Typology: Exams

2024/2025

Available from 02/04/2025

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UARK ACCT Exam 3 With Complete
Solutions 100% Verified!!
Tangible Assets - ANSWER>>land, buildings, equipment, natural resources
Intangible Assets - ANSWER>>patents, trademarks, copyrights, franchises, and
goodwill
The initial cost of a long-term asset will include - ANSWER>>any additional amounts
the company paid to bring the asset to desired condition and location.
To capatalize an expedinture means to - ANSWER>>record the expenditure of an asset
An capitalized expedinture will be expensed. - ANSWER>>over time as the asset is
used in company operations
To expense a expedinture means to record. - ANSWER>>the dull expenditure as an
expense IMMEDIATLY
Costs to get land ready for use include: - ANSWER>>-Real estate commissions and
fees
-Back property taxes or other obligations
-Clearing, filling, and leveling the land
-Cash received from selling salvaged building materials reduces the cost of land
Land improvements have limited useful lives and are recorded. - ANSWER>>seperatly
from the land accounts
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Tangible Assets - ANSWER>>land, buildings, equipment, natural resources

Intangible Assets - ANSWER>>patents, trademarks, copyrights, franchises, and goodwill

The initial cost of a long-term asset will include - ANSWER>>any additional amounts the company paid to bring the asset to desired condition and location.

To capatalize an expedinture means to - ANSWER>>record the expenditure of an asset

An capitalized expedinture will be expensed. - ANSWER>>over time as the asset is used in company operations

To expense a expedinture means to record. - ANSWER>>the dull expenditure as an expense IMMEDIATLY

Costs to get land ready for use include: - ANSWER>>-Real estate commissions and fees

-Back property taxes or other obligations

-Clearing, filling, and leveling the land

-Cash received from selling salvaged building materials reduces the cost of land

Land improvements have limited useful lives and are recorded. - ANSWER>>seperatly from the land accounts

Costs of getting a building ready for use include: - ANSWER>>-Realtor commissions and fees

-Remodeling costs

The costs of equipment might include: - ANSWER>>-sales tax

-shipping

-assembly and any other costs to prepare the asset for use

Recurring costs such as annual property tax and annual property insurance on vehicles are. - ANSWER>>expensed as incurred

Basket Purchases are - ANSWER>>the purchases of more than one asset at the same time for one purchase price

Basket Purchases are recorded in. - ANSWER>>Accounts of each of the assets acquired

We allocate the total purchase brice of basket purchases as - ANSWER>>the total purchase price based on the relative fair values of individual assets (each asset's estimated fair value will be divided by the total estimated fair value to obtain an allocation percentage. Then the amount of the basket purchase is multiplied by the allocated percentage.)

The fair-value of an asset is - ANSWER>>its estimated stand-alone selling price

Natural resocurces include: - ANSWER>>oil, natural gas, timber and salt

Natural resources are distinguished from other assets by the fact that. - ANSWER>>They are physically used up or deleted (Record as cost + all other costs necessary to get asset ready for use)

All costs subsequent to acquisition - ANSWER>>Capitalise if: it enhances the FUTURE period

Expense if: it benefits ONLY the current period

Repairs and Maintenance - ANSWER>>We write off maintenance and repairs that affect productivity only in the current period in which they occur. The more major repairs that enhance the future benefits of productivity are added to the asset and capitalised. These include major repairs unlikely to recur in each period.

Additions - ANSWER>>An addition is made when we add a new major component to an existing asset. We should capitalize the cost of the additions if they increase, rather than maintain, the future benefits from the expenditure.

Improvements - ANSWER>>An improvement is the cost of replacing major components with the same characteristics as the old component, or a new component with enhanced operating abilities. The cost of the improvement usually increases future benefits, and we should capitalize it.

Legal defense and intangible assets ANSWER>>Intangible assets may also require costs subsequent to their acquisition, such as the cost of legally defending the right that gives the asset its value. The costs of successfully defending an intangible asset are added to the asset account. If the defense of the intangible is unsuccessful we expense the litigation costs as incurred,

Depreciation - ANSWER>>charge the cost of an asset to an expense over its service life. We recognize a portion of the assets cost of depreciation expense in each year the asset provides benefit

Recording depreciation- Service Value - ANSWER>>The estimated use the company expects to receive from the asset before disposing of it.