Question
1. Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 4 years or 12,000 hours. It
1. Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the diminishing value method with a constant depreciation rate of 37.5%. What is the amount of depreciation expense for the first full year, during which the equipment was used 3,300 hours?
Select one:
a. $44,000
b. $56,250
c. $60,000
d. $41,250
2. A high inventory turnover indicates:
Select one:
a. inventory consists of mostly high value products.
b. inventory consists of mostly low value products.
c. a low level of funds tied up in inventory.
d. a high level of funds tied up in inventory.
3. If a cheque was correctly written and paid by the bank for $354 but was incorrectly recorded on the company's books for $345, the appropriate treatment in performing bank reconciliation would be to:
Select one:
a. add $9 to the bank statement's balance
b. add $9 to the cash book balance.
c. deduct $9 from the bank statement's balance.
d. deduct $9 from the cash book balance
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