14) When the direct method is used to record inventory at market
15) Designated market value
16) The retail inventory method is based on the assumption that the
17) In 2006, Lucas Manufacturing signed a contract with a supplier to
purchase raw materials in 2007 for $700,000. Before the December
31, 2006 balance sheet date, the market price for these materials
dropped to $510,000. The journal entry to record this situation at
December 31, 2006 will result in a credit that should be reported
18) The gross profit method of inventory valuation is invalid when
19) Which of the following is NOT a major characteristic of a plant
asset?
20) The cost of land does NOT include
21) If a corporation purchases a lot and building and subsequently
tears down the building and uses the property as a parking lot, the
proper accounting treatment of the cost of the building would depend
on
22) To be consistent with the historical cost principle, overhead costs
incurred by an enterprise constructing its own building should be
23) When computing the amount of interest cost to be capitalized, the
concept of "avoidable interest" refers to
24) The period of time during which interest must be capitalized ends
when
25) Construction of a qualifying asset is started on April 1 and
finished on December 1. The fraction used to multiply an expenditure
made on April 1 to find weighted-average accumulated expenditures
is
26) When funds are borrowed to pay for construction of assets that
qualify for capitalization of interest, the excess funds NOT needed to
pay for construction may be temporarily invested in interest-bearing
securities. Interest earned on these temporary investments should be
27) When a plant asset is acquired by issuance of common stock, the
cost of the plant asset is properly measured by the
28) If an industrial firm uses the units-of-production method for
computing depreciation on its only plant asset, factory machinery, the
credit to accumulated depreciation from