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
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)
Reminder:
Original price: $12,000
$2,000 annual depreciation
$8,000
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
