1. The book value of a depreciable asset is defined as the asset's:

a. cost.

b. current market value.

c. cost less accumulated depreciation.

d. replacement cost.

2. Morton Co. recorded a payment of cash on account to a creditor by debiting Accounts Receivable and crediting Cash. The correcting entry is:

a. debit Accounts Payable and credit Cash.

b. debit Cash and credit Accounts Receivable.

c. Some other correcting entry is necessary.

d. debit Accounts Payable and credit Accounts Receivable.

3. Abrams Company signed an $18,000 six-month note payable on September 1 that bears interest at a rate of 5%. The total interest to be accrued on this note at December 31 is:

$900.

$75.

c. $300.

d. $450.