11 which of the following asset categories would include fencing a machinery and equ 4311512

11) Which of the following asset categories would include fencing?

A) Machinery and equipment

B) Land improvements

C) Buildings

D) Land

12) Which of the following asset categories would include the cost of clearing land and removing unwanted buildings?

A) Land

B) Buildings

C) Land improvements

D) Machinery and equipment

13) Which of the following is NOT a characteristic of a plant asset?

A) The asset is used in the production of income for the business.

B) The asset is available for sale to customers in the ordinary course of business.

C) The asset has physical form.

D) The asset has future usefulness and value.

14) Hastings Company has purchased a group of assets for $350,000.  The assets and their market values are listed as follows:

Land	$125,000
Equipment	75,000
Building	200,000

Which of the following amounts would be debited to the Land account?

A) $125,000

B) $109,375

C) $65,625

D) $175,000

15) Which of the following would be capitalized and depreciated, rather than expensed?

A) Modification for new use

B) Paint job

C) Replacement of tires

D) Normal repair of engine

16) Which of the following would be expensed, rather than capitalized?

A) Oil change and lubrication

B) Major engine overhaul

C) Modification for new use

D) Addition to storage capacity

17) A company's accountant capitalizes a payment that should be recorded as an expense.  Which of the following is TRUE?

A) Revenue is overstated.

B) Expenses are overstated.

C) Assets are overstated.

D) Liabilities are overstated.

18) A company's accountant capitalizes a payment that should be recorded as an expense.  Which of the following is TRUE?

A) Net income is overstated.

B) Revenues are understated

C) Assets are understated.

D) Liabilities are overstated.

19) A company's accountant expenses a payment that should be capitalized.  Which of the following is TRUE?

A) Net income is understated.

B) Liabilities are overstated.

C) Revenue is overstated.

D) Assets are overstated.

20) Which of the following costs related to a company car would NOT be expensed?

A) The cost to install an engine with higher horsepower

B) The cost to change car's oil

C) The cost to replace a broken windshield

D) The cost of new tires

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