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Intermediate Accounting 15th Edition By Donald E. Kieso – Test Bank
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Intermediate Accounting 15th Edition By Donald E.-Kieso – Test Bank

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Edition: 15th Edition

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Intermediate Accounting 15th Edition By Donald E.-Kieso – Test Bank

CHAPTER 11

 

DEPRECIATION, IMPAIRMENTS, AND DEPLETION

 

IFRS questions are available at the end of this chapter.

 

TRUe-FALSe—Conceptual

Answer      No.    Description

T              1.     Nature of depreciation.

F              2.     Nature of depreciation.

T              3.     Depreciation, depletion, and amortization.

T              4.     Definition of depreciation base.

F              5.     Factors involved in depreciation process.

F              6.     Definition of inadequacy.

T              7.     Objection to straight-line method.

F              8.     Units-of-production approach.

F              9.     Accelerated depreciation method.

T            10.     Declining-balance method.

T            11.     Group or composite approach.

F            12.     Use of the composite approach.

T            13.     Accounting for changes in estimates.

F            14.     Computation of impairment loss amount.

T            15.     First step in determining an impairment.

T            16.     Reporting impaired assets held for disposal.

F            17.     Method used to compute depletion.

T            18.     Costs included in depletion base.

F            19.     Computing asset turnover ratio.

T            20      Profit margin on sales ratio.

 

 

Multiple Choice—Conceptual

Answer      No.    Description

d            21.     Knowledge of depreciation accounting.

b            22.     Conceptual rationale for depreciation accounting.

c            23.     Depreciation and retaining funds.

b          S24.     Definition of depreciation.

a          S25.     Service life vs. physical life.

a          P26.     Definition of depreciable cost.

d            27.     Economic factors affecting useful service life.

d            28.     Factors involved in computing depreciation.

d            29.     Straight-line method assumption.

a            30.     Activity method of depreciation.

a            31.     Units-of-production method of depreciation.

d            32.     Units-of-production method of depreciation.

d            33.     Knowledge of double-declining balance method.

c            34.     Components of sum-of-the-years’-digits method.

c            35.     Graphic depiction of straight-line and sum-of-the-years’-digits methods.

b            36.     Disadvantage of using straight-line method.

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