Asset Retirement Obligations - CPA Financial Accounting and Reporting (FAR)
Card 1 of 24
Of the following assets, which is an intangible that is subject to a recoverability test when testing for impairment?
Of the following assets, which is an intangible that is subject to a recoverability test when testing for impairment?
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The recoverability test is only performed on intangible assets with a limited life. A patent generally has a limited life.
The recoverability test is only performed on intangible assets with a limited life. A patent generally has a limited life.
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Goodwill should be tested for value impairment at which of the following levels under US GAAP?
Goodwill should be tested for value impairment at which of the following levels under US GAAP?
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US GAAP requires that goodwill be tested for impairment at the reporting unit level.
US GAAP requires that goodwill be tested for impairment at the reporting unit level.
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Which situation would likely dictate use of units of production depreciation?
Which situation would likely dictate use of units of production depreciation?
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Land is not depreciated, and a machine which produces products would incur damage, wear and tear, and usage only as it produces goods. Buildings and trucks would be depreciated throughout their lives.
Land is not depreciated, and a machine which produces products would incur damage, wear and tear, and usage only as it produces goods. Buildings and trucks would be depreciated throughout their lives.
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Which of the following is untrue regarding asset retirement obligations?
Which of the following is untrue regarding asset retirement obligations?
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Companies do not need to discount cash flows when estimated asset retirement obligations.
Companies do not need to discount cash flows when estimated asset retirement obligations.
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Which of the following would be included in the journal entry to retire a fixed asset?
Which of the following would be included in the journal entry to retire a fixed asset?
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When an asset is retired, the asset value and its related accumulated depreciation are reverse. This means a debit will be booked to accumulated depreciation to clear the account.
When an asset is retired, the asset value and its related accumulated depreciation are reverse. This means a debit will be booked to accumulated depreciation to clear the account.
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Which of the following is not a common method of asset disposal?
Which of the following is not a common method of asset disposal?
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The most common methods of asset disposal are sale, scrap, and exchange.
The most common methods of asset disposal are sale, scrap, and exchange.
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Which of the following is untrue regarding asset retirement obligations?
Which of the following is untrue regarding asset retirement obligations?
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Companies do not need to discount cash flows when estimated asset retirement obligations.
Companies do not need to discount cash flows when estimated asset retirement obligations.
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Which of the following would be included in the journal entry to retire a fixed asset?
Which of the following would be included in the journal entry to retire a fixed asset?
Tap to reveal answer
When an asset is retired, the asset value and its related accumulated depreciation are reverse. This means a debit will be booked to accumulated depreciation to clear the account.
When an asset is retired, the asset value and its related accumulated depreciation are reverse. This means a debit will be booked to accumulated depreciation to clear the account.
← Didn't Know|Knew It →
Which of the following is not a common method of asset disposal?
Which of the following is not a common method of asset disposal?
Tap to reveal answer
The most common methods of asset disposal are sale, scrap, and exchange.
The most common methods of asset disposal are sale, scrap, and exchange.
← Didn't Know|Knew It →
Of the following assets, which is an intangible that is subject to a recoverability test when testing for impairment?
Of the following assets, which is an intangible that is subject to a recoverability test when testing for impairment?
Tap to reveal answer
The recoverability test is only performed on intangible assets with a limited life. A patent generally has a limited life.
The recoverability test is only performed on intangible assets with a limited life. A patent generally has a limited life.
← Didn't Know|Knew It →
Goodwill should be tested for value impairment at which of the following levels under US GAAP?
Goodwill should be tested for value impairment at which of the following levels under US GAAP?
Tap to reveal answer
US GAAP requires that goodwill be tested for impairment at the reporting unit level.
US GAAP requires that goodwill be tested for impairment at the reporting unit level.
← Didn't Know|Knew It →
Which situation would likely dictate use of units of production depreciation?
Which situation would likely dictate use of units of production depreciation?
Tap to reveal answer
Land is not depreciated, and a machine which produces products would incur damage, wear and tear, and usage only as it produces goods. Buildings and trucks would be depreciated throughout their lives.
Land is not depreciated, and a machine which produces products would incur damage, wear and tear, and usage only as it produces goods. Buildings and trucks would be depreciated throughout their lives.
← Didn't Know|Knew It →
Which of the following is untrue regarding asset retirement obligations?
Which of the following is untrue regarding asset retirement obligations?
Tap to reveal answer
Companies do not need to discount cash flows when estimated asset retirement obligations.
Companies do not need to discount cash flows when estimated asset retirement obligations.
← Didn't Know|Knew It →
Which of the following would be included in the journal entry to retire a fixed asset?
Which of the following would be included in the journal entry to retire a fixed asset?
Tap to reveal answer
When an asset is retired, the asset value and its related accumulated depreciation are reverse. This means a debit will be booked to accumulated depreciation to clear the account.
When an asset is retired, the asset value and its related accumulated depreciation are reverse. This means a debit will be booked to accumulated depreciation to clear the account.
← Didn't Know|Knew It →
Which of the following is not a common method of asset disposal?
Which of the following is not a common method of asset disposal?
Tap to reveal answer
The most common methods of asset disposal are sale, scrap, and exchange.
The most common methods of asset disposal are sale, scrap, and exchange.
← Didn't Know|Knew It →
Of the following assets, which is an intangible that is subject to a recoverability test when testing for impairment?
Of the following assets, which is an intangible that is subject to a recoverability test when testing for impairment?
Tap to reveal answer
The recoverability test is only performed on intangible assets with a limited life. A patent generally has a limited life.
The recoverability test is only performed on intangible assets with a limited life. A patent generally has a limited life.
← Didn't Know|Knew It →
Goodwill should be tested for value impairment at which of the following levels under US GAAP?
Goodwill should be tested for value impairment at which of the following levels under US GAAP?
Tap to reveal answer
US GAAP requires that goodwill be tested for impairment at the reporting unit level.
US GAAP requires that goodwill be tested for impairment at the reporting unit level.
← Didn't Know|Knew It →
Which situation would likely dictate use of units of production depreciation?
Which situation would likely dictate use of units of production depreciation?
Tap to reveal answer
Land is not depreciated, and a machine which produces products would incur damage, wear and tear, and usage only as it produces goods. Buildings and trucks would be depreciated throughout their lives.
Land is not depreciated, and a machine which produces products would incur damage, wear and tear, and usage only as it produces goods. Buildings and trucks would be depreciated throughout their lives.
← Didn't Know|Knew It →
Which of the following is untrue regarding asset retirement obligations?
Which of the following is untrue regarding asset retirement obligations?
Tap to reveal answer
Companies do not need to discount cash flows when estimated asset retirement obligations.
Companies do not need to discount cash flows when estimated asset retirement obligations.
← Didn't Know|Knew It →
Which of the following would be included in the journal entry to retire a fixed asset?
Which of the following would be included in the journal entry to retire a fixed asset?
Tap to reveal answer
When an asset is retired, the asset value and its related accumulated depreciation are reverse. This means a debit will be booked to accumulated depreciation to clear the account.
When an asset is retired, the asset value and its related accumulated depreciation are reverse. This means a debit will be booked to accumulated depreciation to clear the account.
← Didn't Know|Knew It →