Accountıng Iı

Yanıt Açıklaması: Intangible assets are a unique kind of non-current assets that provide certain legal rights, privileges, and competitive advantages to the business.

Yanıt Açıklaması: Installments are not included in the cost of the land. These type of separate long-lived assets are called land improvements.

Yanıt Açıklaması: Trading securities are debt or equity securities bought and held principally for the purpose of being sold in the near term to generate income on short-term price differences. The correct answer is C.

Yanıt Açıklaması: Rights consist of patents, licenses, trademarks, franchises and copyrights. Goodwill means different things to different people. Generally, it refers to a company’s good reputation and intangible assets of a business that is created from favorable attributes that relate to a company and are not attributable to any other specific asset. These include managerial skills, desirable location, good customer relations, skilled employees, high-quality products, and good relations with labor unions. A good reputation may create goodwill, but that company cannot record goodwill for its own business.

Yanıt Açıklaması: Available for sale securities are measured with their fair values. Any change in value is reflected in balance sheets with the help of unrealized holding gain or loss accounts. The correct answer is E.

Yanıt Açıklaması: The initial cost for an intangible asset includes only the purchase price.

Yanıt Açıklaması: A capital expenditure (balance sheet expenditure) is debited to an asset account because it increases the asset’s capacity or efficiency or extends the asset’s useful life. A capital expenditure is reported on the balance sheet as an asset. The correct answer is A.

Yanıt Açıklaması: Depreciation is the allocation of long-term asset’s cost to expense over its useful life. The correct answer is C.

Yanıt Açıklaması: Property, plant and equipment assets are economic resources that have physical substance (tangible), are used in the operations of a business, and are not intended for sale to customers. Property, plant and equipment assets have the following major characteristics: They are acquired for use in operations and not for resale: Because those assets are acquired for use in operations for several years, they are recognized under non-current assets. Otherwise, they would either be reported under merchandise inventory or reported as an expense. They are in long-term in nature and usually depreciated: Property, plant and equipment assets provide economic benefit for several years. This means that within the revenue the company earned these assets have contributions. In other words, by using these assets their benefits are consumed. As you remember, the matching principle indicates that the revenues of a period must be matched with the expenses of the same period for calculating the profit/loss of the period. So the cost of the long-lived assets should be divided into their useful lives. This allocation of a long-lived asset’s cost over its useful life is called depreciation. Their whole costs must not be recognized as an expense for the year they are acquired. – They possess physical substance: Property, plant and equipment have physical existences. They are also called tangible assets because of this characteristic. As can also be understood from the information given, “They are acquired for use in operations and not for resale.”, “They possess physical substance.”,  “They are not intended for sale to customers.” and “They are economic resources that have physical substance (tangible)” are correct statements, so the correct answer is D. The statement “They are in short-term in nature and usually depreciated.” is not correct. They are in long-term in nature and usually depreciated.

Yanıt Açıklaması: Anadolu Co. sells its machine for 150,000 TL. AnadoluCo. receives 150,000 TL cash and it exceeds the book value of 140,000 TL. Thus, a gain of 10,000 TL is recorded.

Yanıt Açıklaması: The security that represents a credit relationship with another entity upon issuance is called debt security. By investing in a debt security issued by another enterprise, a company plays the creditor role in the market. Treasury bonds, corporate bonds, convertible debt instruments are some of the examples of debt securities. The correct answer is B.

Yanıt Açıklaması: The correct answer is B. In the accounting record to be made, merchandise inventories will be debited by TL 5.000 and account payable will be 5,000 TL credited.

Yanıt Açıklaması: In cases of purchases on credit or borrowings, companies may issue promissory notes as an arrangement to formalize the repayment of a certain amount of cash at a certain date to a third party. If it is expected to be paid in the following fiscal year, these promissory notes are recorded as notes payable in current liabilities section of balance sheet. The correct answer is C.

Yanıt Açıklaması: Depletion per Unit= Cost- Residual Value / Total Estimated Units Available Depletion per Unit= 6000000 - 0 /30000000 = 0,2

Yanıt Açıklaması: Rights consist of patents, licenses, trademarks, franchises and copyrights Intangibles are categorized as having either a limited life (definite life) or an indefinite life. The initial cost of a purchased intangible asset includes only the purchase price.

Yanıt Açıklaması: Purchase Price: 10,000,000 TL Double - Declining Balance Depreciation 1st Year= (10,000,000 - 0)x 2/10=2,000,000 TL Double - Declining Balance Depreciation 2nd Year= (10,000,000 - 2,000,000)x 2/10=1,600,000 TL The correct answer is B.

Yanıt Açıklaması: Goodwill is the value paid above the net worth of the company’s assets and liabilities. The correct answer is C.

Yanıt Açıklaması: The process of allocating the cost of an intangible asset to expense over its useful life is referred to amortization. The correct answer is E.

Yanıt Açıklaması: The correct answer is question E. An intangible asset is both long term and nonphysical.

Yanıt Açıklaması: When the investor company has both intention and ability to keep it until the maturity date, it is recorded as held-to-maturity.