SWIC ACCT211 Chapter 11 Quiz Latest 2022 March

ACCT211 Intermediate Accounting

CH 11 Quiz

Question 1Normally, companies compute depletion on a straight-line basis.

True

False

Question 2The units-of-production approach to depreciation is appropriate when depreciation is a function of time instead of activity.

True

False

Question 3Intangible development costs and restoration costs are part of the depletion base.

True

False

Question 4Impaired assets held for disposal should be reported at the lower of cost or net realizable value.

True

False

Question 5Companies frequently use the composite approach when the assets are similar in nature and have approximately the same useful lives.

True

False

Question 6Changes in estimates are handled prospectively by dividing the asset’s book value less any salvage value by the remaining estimated life.

True

False

Question 7Depreciation is based on the decline in the fair market value of the asset.

True

False

Question 8Depreciation, depletion, and amortization all involve the allocation of the cost of a long-lived asset to expense.

True

False

Question 9The major objection to the straight-line method is that it assumes the asset’s economic usefulness and maintenance repair expense are the same each year.

True

False

Question 10The declining-balance method does not deduct the salvage value in computing the depreciation base.

True

False