Generally accepted accounting principles require that the cost of the plant asset be expensed over ....
the asset's useful life
100
Depreciation Expense has a normal balance or...
Debit
100
If a plant asset costs $1200, has accumulated depreciation of $1,000 and is sold for $200, the gain or loss on disposal is...
0, there is no gain or loss because it was disposed of for the Book Value
200
Recording a plant asset for the amount paid for the asset is an application of what Accounting Concept
Historical Cost
200
The original cost of the plant asset minus accumulated depreciation is known as the ...
book value
200
Accumulated Depreciation has a normal balance of ...
Credit
200
If a plant asset costs $5000, has accumulated depreciation of $4200 and is sold for $600, the gain or loss on the disposal is...
Loss of $200
300
Land and anything attached to the land
Real Property
300
An accounting form on which a business records information about each plant asset is called a ....
plant asset record
300
What is the smallest unit of time used to calculate depreciation?
Month
300
The annual depreciation for a plant asset with original cost of $1000, estimated salvage value of $100, useful life of 10 years using the straight line method
$90
400
The Value of real property determined by tax authorities for the purpose of calculating taxes is called the ....
assessed value
400
Describe how to calculate the annual depreciation expense using the straight line method of depreciation
Original Cost - Estimated Salvage Value / Years of Useful Life = Annual Depreciation Expense
400
How do you figure the gain or loss on the sale of a plant asset?
Cash Received minus the Book value at the time of the sale
400
The first year depreciation for a plant asset with original cost of $1000, estimated salvage value of $100, useful life of 10 years using the Double declining balance method-the
$200
500
A business that records its equipment in accounts such as Office Equipment and Store Equipment is applying which accounting concept?
Adequate Disclosure
500
Transferring a portion of a plant asset's cost to an expense in each fiscal period that a plant asset is used is an application of what concept?
Matching Expenses with Revenue
500
When a plant asset is sold, entries are made into the Cash Receipts Journal. Describe the entries for a gain on a plant asset
Debit Accumulated Depreciation to remove it from the records, Debit Cash for the Amount Received, Credit the Asset account to remove the original cost from the records, credit Gain on Plant Assets.
500
Name 4 examples of plant assets that depreciate
Computers, cars, trucks, office furniture, store equipment, machines, lawn mowers