Question
1) Factors contributing to a decline in the usefulness of a fixed asset may be divided into the following two categories A. salvage and functional
1) Factors contributing to a decline in the usefulness of a fixed asset may be divided into the following two categories
| A. | salvage and functional | |
| B. | physical and functional | |
| C. | residual and salvage | |
| D. | functional and residual |
2) A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?
| A. | $17,500 | |
| B. | $37,500 | |
| C. | $18,750 | |
| D. | $16,667 |
3) After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of the accounts receivable?
| A. | $51,000 | |
| B. | $289,000 | |
| C. | $340,000 | |
| D. | $391,000 |
4) Residual value is also known as all of the following except
| A. | scrap value | |
| B. | trade in value | |
| C. | salvage value | |
| D. | net book value |
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Modern Auditing And Assurance Services
Authors: Philomena Leung, Paul Coram, Barry J. Cooper, Peter Richardson
5th Edition
1742168450, 978-1742168456
