assets in accounting coursera week 3 quiz answers

PP&E Practice Quiz

1. Select all of the current assets:

  • Accounts Receivable
  • Cash
  • Bottles of Everlasting Summer massage oil for resale
  • Massage table

2. Select all of the non-current assets:

  • Two acres of land owned for a future office site
  • Product patent
  • Cost of Goods Sold
  • Office space rental

3. Which assets would be considered PP&E?

  • Land, buildings, cash
  • Salaries, rent, snacks
  • Land, buildings, equipment
  • Inventory, office supplies, accounts receivables

4. True or false. PP&E and expenses are treated the same when it comes to taxes.

  • True
  • False

5. If PP&E is miscalculated or entered incorrectly, it mostly impacts:

  • Potential investor perception
  • Balance sheet
  • Analysis of fixed asset spending
  • All of the above

Depreciation Quiz

6. True or false: Depreciation is spreading out the expense of an asset over time.

  • True
  • False

7. True or false: Depreciation expense is recorded on the balance sheet below PP&E.

  • True
  • False

8. What will the accumulated depreciation of the Float Tank be after 4 years? (Format your answer as $x,xxx, no parenthesis)


Original price: $12,000

$2,000 annual depreciation


Shuffle Q/A 1

9. If an asset has a salvage value of $300, that means:

  • Its accumulated depreciation is $300.
  • It could be sold for $300 at the end of its useful life.
  • Its book value is $300.
  • It was purchased for $300.

10. When using QBO software, depreciation expense must be entered as a:

  • Fixed asset
  • Revenue account
  • Journal entry
  • Check

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