Practice More Quizzes:
Q:
Bill is so excited about opening up his BBQ joint, “Sop ‘n Mop Rib Shack”. He only has a few things left to do before opening day. One task is to sign the lease for his 3 BBQ Smokers that just arrived. He is leasing them from the best BBQ Smoker supplier in town, Smokey’s Pit Boss. The lease is a capital lease with a term of 6 years with 10% interest. In this example, Bill is considered the _________________ on the lease, and Smokey’s PitBoss is considered the ___________________.
Q:
Bill is so excited about opening up his BBQ joint, “Sop ‘n Mop Rib Shack”. He only has a few things left to do before opening day. One task is to sign the lease for his 3 BBQ Smokers that just arrived. He is leasing them from the best BBQ Smoker supplier in town, Smokey’s Pit Boss. The lease is a capital lease with a term of 6 years with 10% interest. Since Bill’s lease is a capital lease, this means at the end of the 6 years he _______________________.
Q:
Bill is so excited about opening up his BBQ joint, “Sop ‘n Mop Rib Shack”. He only has a few things left to do before opening day. One task is to sign the lease for his 3 BBQ Smokers that just arrived. He is leasing them from the best BBQ Smoker supplier in town, Smokey’s Pit Boss. The lease is a capital lease with a term of 6 years with 10% interest. Since Bill’s lease is a capital Lease, all of the following are true except:
Q:
Larry Smith purchased equipment for $50,000 on January 1, 2020. Its useful life will be 7 years. What will his yearly Depreciation Expense be assuming straight-line depreciation? (Format your answer as $x,xxx.xx)
Q:
On January 1, 2020, Marcy acquired a small bass boat for $10,000 to use as a business expansion for her fishing shop, “Bass and Brim”. Her goal is to offer charters for tourists and new anglers. The boat’s useful life is expected to be 10 years, and the salvage value is expected to be $0. After 4 years of use, it was determined that the boat would be useful for only three more years, meaning that the total useful life of the boat will be 7 years instead of 10. Marcy uses the straight-line method of depreciation.
Based on this information what amount should Marcy list as the Depreciation Expense for 2025? (Format your answer as $x,xxx)
Q:
PP&E are considered which of the following:
Q:
True or False: In order to adhere to the matching principle, depreciation expense is shown on the income statement.
Q:
Gavin is the owner of ‘Single Track’, a mountain and dirt biking park. He has decided to try and get more riders in the winter snow season and has purchased 10 fat-tire bikes. He paid $14,345 for the bikes themselves, 7% sales tax, $1,200 delivery fee, and $500 delivery insurance coverage.
When setting up his fixed asset account for these new rental bikes, what is Gavin’s original cost? (Format your answer as $xx,xxx.xx)
Q:
Under an operating lease, the monthly payments are considered a(n) ____________________.
Q:
True or False: For tax purposes, an operating lease is NOT considered a rental expense.
Q:
The following are true about operating leases except:
Q:
A lease in which the transfer of ownership is not intended at the end of the lease life is called _________.
Q:
When considering the service life of an asset, the estimate is based on all of the following considerations: (Select all that apply)
Q:
The party who owns the asset that is being rented or leased is known as ________.
Q:
True or False: Some assets return value after their service life.
Q:
Which of the following are examples of PP&E? (Select all that apply)
Q:
For a capital lease, you must include the following journal entries except:
Q:
True or False: Land is considered a noncurrent asset.
Subscribe
0 Comments
Find Questions in This Page: "CTRL+F"
