The maturity value of a note is the A) principal amount minus interest due at ma
ID: 2577241 • Letter: T
Question
The maturity value of a note is the A) principal amount minus interest due at maturity B) face amount of the note C) principal amount times the interest rate D) principal amount plus interest due at maturity 6) s, associated with the truck Freeman, Inc. owns a delivery truck. Which of the following cost will be capitalized and depreciated? A) oil change and lubrication B) replacement of tires C) normal engine repair D) modification for new use 7) 8) Which of the following requires businesses to record depreciation? A) revenue recognition principle B) cost principle C) matching principle D) going concern principle The expected value of an asset at the end of its useful life is known as A) residual value B) book value C) carrying value D) market value 9) 10) The gain or loss on the sale of a plant asset is determined by comparing the market value of of asset sold assets received with the A) residual value B) original cost C) book value D) salvage value 11) Which of the following is an expense that results from the usage of a na A) amortization B) depletion C) depreciation D) obsolescenceExplanation / Answer
6.
Face value of the note is to be paid on maturity.
The answer is B.
7.
Capital expenditures are not normal or recurring epenses which increase the carrying value of the asset. They have benefit of more than 1 year by making the asset bigger, better and longer.
The answer is D.
8.
Depreciation allocates cost of an asset to the period benefited in line with Matching principle
The answer is C.
9.
The expected value of an asset at the end of its useful life is known as Residual value or Salvage value
The answer is A.
10.
Gain / loss on sale of asset = Market value - Book value(cost-accumulated depreciation)
The answer is C.
11.
Depletion is an expense that results from the usage of natural resource
The answer is B.
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