91Ó°ÊÓ

A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as: (a) property, plant, and equipment. (b) land expense. (c) a long-term investment. (d) an intangible asset.

In a classified balance sheet, assets are usually classified using the following categories: (a) current assets; long-term assets; property, plant, and equipment; and intangible assets. (b) current assets; long-term investments; property, plant, and equipment; and tangible assets. (c) current assets; long-term investments; tangible assets; and intangible assets. (d) current assets; long-term investments; property, plant, and equipment; and intangible assets.

Current assets are listed: (a) by expected conversion to cash. (b) by importance. (c) by longevity. (d) alphabetically.

16\. On December 31, Kevin Hartman Company correctly made an adjusting entry to recognize \(\$ 2,000\) of accrued salaries payable. On January 8 of the next year, total salaries of \(\$ 3,400\) were paid. Assuming the correct reversing entry was made on January 1, the entry on January 8 will result in a credit to Cash \(\$ 3,400\) and the following \(\operatorname{debit}(\mathrm{s})\) : (a) Salaries and Wages Payable \(\$ 1,400\) and Salaries and Wages Expense \(\$ 2,000\). (b) Salaries and Wages Payable \(\$ 2,000\) and Salaries and Wages Expense \(\$ 1,400\). (c) Salaries and Wages Expense \(\$ 3,400\). (d) Salaries and Wages Payable \(\$ 3,400\).