Answered: Exterior and interior painting would be…

Exterior and interior painting would be classified as O a. asset improvements O b. ordinary maintenance and repairs O c. extraordinary repairs O d. none of these choices

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 8CYBK

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Question

Exterior and interior painting would be classified as
O a. asset improvements
O b. ordinary maintenance and repairs
O c. extraordinary repairs
O d. none of these choices

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The salvage value of equipment should not be considered when replacing it with new equipment Select one: True O False
Which of the following expenditures would be included in the cost of a fixed asset? Oa. Sales taxes Ob. Vandalism Oc. Uninsured theft Od. Mistakes in installation
All of the following factors are considered in determining the useful life of an asset except: residual value b.expected usage of the asset technical obsolescence expected physical wear and tear
The Journal entry to record the disposal of the equipment would NOT include?
Which of the following expenditures cannot be included in R&D costs? a. indirect costsb. intangibles purchased from othersc. personnel costsd. contract services performed for others
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True or False Replacement analysis should be done at the end of the useful life of the property.
Remodeling and rehabilitation: Can usually be undertaken by the property manager without consulting the owner or asset manager Are most likely categorized as operating expenses Are preventative measures undertaken to prevent a loss in value Are expected to add value to the property if undertaken
The loss in value from all causes within a property except those due to physical deterioration is known as which of the following? A. functional obsolescence B. obsolescence C. true obsolescence D. deterioration
Which of the following items shall not be capitalized into the cost of property, plant, and equipment? Cost of excess materials resulting from a purchasing error. Cost of testing whether the asset works correctly. Initial delivery and handling costs. Cost of preparing the site for installation.
(Appendix 11A) Which of the following would be classified as an external failure cost on a quality cost report? Multiple Choice Repairs and replacements beyond the warranty period. Quality engineering. Systems development. Quality training.
Distinguish among spoilage, rework and scrap.