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