Test Bank For Intermediate Accounting Volume 1, 7th Edition By Spiceland

Test Bank For Intermediate Accounting Volume 1, 7th Edition By Spiceland

1. Amortization accounting is not a matter of valuation.

True False

2. Amortization retains funds by reducing income and thereby impacting the dividend payment decision.

True False

3. Impairment losses on intangible assets are to be amortized over the asset’s remaining useful life.

True False

4. Accumulated amortization represents the cash set aside for the replacement of assets.

True False

5. Held-for-sale capital assets are not depreciated.

True False

6. Component accounting requires the same amortization method to be applied for all of an asset’s major components.

True False

7. The declining balance method records higher amortization expenses in the earlier years of an asset’s useful life.

True False

8. If an industrial firm uses the units-of-output method for computing amortization on its only plant asset, factory machinery, the credit to accumulated amortization from period to period during the life of the firm will vary with sales revenue.

True False

9. The half-year convention is applied to CCA calculations.

True False

10. Goodwill impairment losses are reversible under IFRS but not under ASPE.

True False