财务会计英语 习及答案ch10.docVIP

CHAPTER 10 FIXED ASSETS AND INTANGIBLE ASSETS Chapter 10—Fixed Assets and Intangible Assets TRUE/FALSE 1. Long-lived assets that are intangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets. ANS: F DIF: 1 OBJ: 01 2. The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs to get the asset in place and ready for use. ANS: T DIF: 1 OBJ: 01 3. When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account. ANS: F DIF: 2 OBJ: 01 4. Land acquired as a speculation is reported under Investments on the balance sheet. ANS: T DIF: 1 OBJ: 01 5. To a major resort, timeshare properties would be classified as property, plant and equipment. ANS: T DIF: 2 OBJ: 01 6. Standby equipment held for use in the event of a breakdown of regular equipment is reported as property, plant, and equipment on the balance sheet. ANS: T DIF: 2 OBJ: 01 7. The cost of repairing damage to a machine during installation is debited to a fixed asset account. ANS: F DIF: 1 OBJ: 01 8. During construction of a building, the cost of interest on a construction loan should be charged to an expense account. ANS: F DIF: 2 OBJ: 01 9. The cost of computer equipment does not include the consultants fee to supervise installation of the equipment. ANS: F DIF: 1 OBJ: 01 10. Functional depreciation occurs when a fixed asset is no longer able to provide services at the level for which it was intended. ANS: T DIF: 1 OBJ: 01 11. The normal balance of the accumulated depreciation account is debit. ANS: F DIF: 1 OBJ: 01 12. As a company depreciates a piece of equipment, it cash flow goes up. ANS: F DIF: 3 OBJ: 01 13. When cities give land or buildings to a company to locate in the community, no entry is made since there is no cost to the company. ANS: F DIF: 2 OBJ: 01 14. All property, plant, an