All of the following are included in the acquistion COsT Ur a. transportation co

Question

All of the following are included in the acquistion COsT Ur a. transportation costs b. taxes on the purchase c. installation costs d. maintenance costs. 2. Which statement is true concerning operating assets? a. Operating assets have no physical properties. b. A company's operating assets are important to its short-term liquidity. c. Operating assets are used over two or more periods to generate revenues. d. All operating assets are reported on the balance sheet Which of the following accounts would not be reported in the Property, Plant, and Equipment section of a balance sheet? a. Accumulated Depreciation-Buildings b. Buildings c. Depreciation Expense-Buildings d. Land McLaren Corp. incurred the following costs to acquire and prepare land during 2017 for a new parking lot: purchase price for land, $800,000; cost of paving, $40,000; and lighting for the parking lot, $20,000. How much should McLare record in the Land Improvements account? 4. a. $30,000 b. $40,000 c. $60,000 d. $90,000 5. Darrin Brown bought a pub. The purchase price was $695,000. An appraiser provided the following appraisal valu land, $320,000; building, $370,000, and equipment, S60,000. What cost should be allocated to the building? a. $370,000 b. $695,000 c. $342,867 d. $399,281 6. Depreciation is a process by which a. replacement funds are accumulated for plant and equipment. arket value of plant and equipment is determined and recorded. c. the cost of plant and equipment is allocated to expense over the time periods which benefit from the use of asset. d. the difference between current market value and historical cost of plant and equipment is determined. Wexford Co. Wexford Co. purchased a new delivery truck at the beginning of 2017. The truck has a cost of $37,000, an estim Copyright Cengage Learning. Powered by Cognero

Explanation / Answer

2.option c is correct:

Operating assets are used over two or more periods

Explanation:

Operating assets are those assets which is acquired by a business for use in the conduct of the operations of a business. These assets are needed to generate revenue. Such as cash, account receivable, inventory , fixed assets etc.

So operating assets are used over two or more periods to generate revenue.

3. Depreciation expense-building

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