Accountıng Iı Ara 6. Deneme Sınavı
Toplam 8 Soru1.Soru
Which of the following is not included in intangible assets?
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Plant |
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Copyrights |
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Licences |
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Patents |
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Trademarks |
Intangible assets don’t have a physical substance or form unlike property, plant and equipment assets. Instead, intangible assets convey special rights from patents, copyrights, licenses, trademarks, etc. and other inventive works. Besides these, intangible assets also include pre-operating costs, research and development costs and leasehold improvements.
2.Soru
On 31 April 2017, A company purchased equipment for 200.000 TL. The company issued a note for the amount. The note has 8 months maturity and 10% interest rate, and total interest and principal amount is due on maturity.
Which of the following is true about the first journal entry to be made according to this information?
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Equipment credited 100.000 |
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Account Receivable debited 100.000 |
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Notes Payable credited 100.000 |
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Short term loan bank credited 100.000 |
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Interest Expense credited 100.000 |
When the first journal entry to record the purchase of equipment, equipment 100 will be debited, account payable 100 will be credited.
3.Soru
Which of the following is not accurate information about why companies invest?
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A company can invest to earn interest revenue. |
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A company may also invest cash in the debt or equity securities of another company. |
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A company can invest to receive dividends. |
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Companies use their idle or excess money only by depositing them in debt securities. |
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A company can invest to realize gains from increases in the market price of the securities. |
The correct answer is B. Companies may direct their idle or excess cash into either debt securities or equity securities, as the two main groups of investment alternatives. Debt securities are not a single investment alternative.
4.Soru
A company removes the engines of 5 of its vehicles to extend their useful life. Then, it changes the oil in the engines of another 5 vehicles. In this case, which of the following is true?
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Both expenditures will be debited to an asset account. |
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Both expenditures will be recorded as period expenses. |
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Both expenditures will be added to the cost of the asset. |
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The first expenditure is added to the cost of the asset. |
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The second expenditure is debited to an asset account. |
The cost of the vehicles include the purchase price and other necessary expenditures made to bring them to their intended uses. If the expenditure made for vehicles extends the useful life of the vehicle and/ or increases the capacity, like modification or engine renewal, then these expenditures will be capitalized. But the regular maintenance expenditures such as oil change or minor engine repairs will be recorded as period expenses. The correct answer is D.
5.Soru
A company makes an expenditure for a building it owns, and this extends the useful life of the building. How will this company record this expenditure in the journal?
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Debits to Repairs and Maintenance Expense account. |
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Records as an asset. |
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Records as a period expense. |
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Records as an inventory. |
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Records as a depreciation. |
There are also some expenditures made for building and these expenditures yielded as extending the useful life of the asset and/or increasing the capacity of the asset. These kinds of expenditures must be capitalized. Capitalization means recording as an asset. In this context, if an expenditure extends the useful life and/or increases the capacity of an asset, it must be added to the cost of the related asset. The correct answer is B.
6.Soru
How are the long-term liability installments that are due within the coming year classified?
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Account payable |
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Current Portion of Long Term Loan |
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Installments |
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Periodic Payments |
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Notes Payable |
funds to borrow. In case of borrowings with high amounts, companies prefer longer maturities, so that it is expected to be easier to pay the loan back and protect the liquidity of company at the same time. Companies pay these loans in installments, which include some part of principal and accrued interest together. Therefore, even long-term borrowings have repayment obligations in short term. In other words, some part of the long-term loan matures within one year (or operating cycle length) as of balance sheet date. This part to be paid in the next financial statement term is classified as Current Portion of Long Term Loan. The correct answer is B.
7.Soru
- They are long-lived assets
- They are reported under current assets section of balance sheet.
- Their values fluctuate highly because their benefits are based on competition.
Which of the statements above is true for intangible assets?
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Only I |
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I and II |
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I and III |
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II and III |
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I, II and III |
They are reported under non-current assets section of balance sheet. Other statements are true for intangible assets.
8.Soru
Which statement is false?
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The cost of a plant asset minus accumulated depreciation equals the asset’s book value. |
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Depreciation is a process of allocating the cost of a plant asset over its useful life. |
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Depreciation creates a fund to replace the asset at the end of its useful life. |
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Depreciation is based on the expense recognition principle. |
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Property, plant and equipment assets are economic resources that have physical substance (tangible), are used in the operations of a business, and are not intended for sale to customers. |
Depreciation does not create funds. It provides the cost of the asset to be distributed by distributing it to periods.