Chapter 13

Question 1

A _____ is defined as a long-term tangible property or equipment a company uses to operate its business.

Answer 1

Fixed Asset

Question 2

This includes buildings, computer equipment, software, furniture, land, machinery, and vehicles.

Answer 2

Fixed Asset

Question 3

____ commonly appear on a company balance sheet as property, plant, and equipment

Answer 3

Fixed asset

Question 4

T or F.
The A/P invoice automatically generates the Capitalization document

Answer 4

True

Question 5

T or F.
The user can choose whether to generate the Capitalization document directly, or to automatically generate it from the A/P invoice,

Answer 5

True

Question 6

If a vendor is _____, the the user can generate a Capilization document directly.

Answer 6

Not involved

Question 7

Remember that the accounts are derived from the definition in the _____

Answer 7

Asset Master Data

Question 8

Note that the Asset value date is set by default to be the same as the _____

Answer 8

A/P invoice posting date

Question 9

_____ is used to write off the cost of an asset over its useful lifetime.

Answer 9

Depreciation

Question 10

It represents the reduction in the book value of an asset for both tax and accounting purposes

Answer 10

Depreciation

Question 11

T or F.
The system predicts yearly expected deprecation rate according to A/P invoice

Answer 11

False. Asset Master Data definition

Question 12

The user can view this infomration in the Asset Master Data and in the _____

Answer 12

Aset Depreciation Forecast report

Question 13

THe user can execute the _____ option to update the asset’s value with the actual depreciation

Answer 13

Depreciation run

Question 14

_____ is the removal of an asset or part of an asset from the asset portfolio

Answer 14

Retirement

Question 15

After the asset is fully retired, its value in the aset balance sheet account, in the _____, will be registered as zero

Answer 15

Fixed Assets Sub Ledger

Question 16

The A/R invoice automatically generates a ____ document.

Answer 16

Retirement

Question 17

A _____ can be issued directly in case a customer is not involved and the user needs to write off the fixed asset.

Answer 17

Retitement

Question 18

T or F.
There is an option of a partial retirement

Answer 18

True

Question 19

The asset will hold the remaining value until the end of the item useful life

Answer 19

Partial Retirement

Question 20

The ____ is the most important supplement of the balance sheet from the fixed assets point of view.

Answer 20

Asset History Sheet

Question 21

It displays all posted asset transactions in a fiscal year and presents the assets for each Balance Sheet account

Answer 21

Asset History Sheet