71. Which of the following is included in the cost of land? A. cost of paving a parking lotB. brokerage commissionC. outdoor parking lot lighting attached to the landD. fences on the land 72....





71. Which of the following is included in the cost of land?

A. cost of paving a parking lot
B. brokerage commission
C. outdoor parking lot lighting attached to the land
D. fences on the land



72. Accumulated Depreciation

A. is used to show the amount of cost expiration of intangibles
B. is the same as Depreciation Expense
C. is a contra asset account
D. is used to show the amount of cost expiration of natural resources



73. A building with an appraisal value of $147,000 is made available at an offer price of $152,000. The purchaser acquires the property for $35,000 in cash, a 90-day note payable for $45,000, and a mortgage amounting to $65,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is

A. $147,000
B. $152,000
C. $145,000
D. $110,000



74. A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000, would have a cost basis of

A. $93,000
B. $90,000
C. $82,000
D. $85,000



75. A new machine with a purchase price of $94,000, with transportation costs of $8,000, installation costs of $5,000, and special acquisition fees of $2,000, would have a cost basis of

A. $ 99,000
B. $107,000
C. $102,000
D. $109,000



76. Expenditures that add to the utility of fixed assets for more than one accounting period are

A. committed expenditures
B. revenue expenditures
C. current expenditures
D. capital expenditures



77. A capital expenditure results in a debit to

A. an expense account
B. a capital account
C. a liability account
D. an asset account



78. Which of the following below is an example of a capital expenditure?

A. cleaning the carpet in the front room
B. tune-up for a company truck
C. replacing an engine in a company car
D. replacing all burned-out light bulbs in the factory



79. In a lease contract, the party who legally owns the asset is the

A. lessee
B. lessor
C. operator
D. banker



80. All leases are classified as either

A. capital leases or long-term leases
B. capital leases or operating leases
C. operating leases or current leases
D. long-term leases or current leases





May 15, 2022
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