16.

You are the owner of a small portrait photography business. You have recently purchased a new camera for $5,000. It has a useful life of 5 years and a residual value of $1,500. Using the Double-Declining Balance Depreciation method, calculate the depreciation expense you may record for the first year.

• $1,400
• $2,500
• $2,000
• $3,000

17.

In Becky's store, she has a clerical person make up the bank deposit. Becky never handles cash but makes the nightly deposit herself. Which internal control is she using?

Bank reconciliation

Separation of duties

External control

Checks and balances

18.

Which of the following would NOT be considered a carrying cost?

• Risking losing money on inventory that might not sell.
• Paying a higher wholesale cost on an item to quickly replenish inventory.
• Paying interest fees on financing activities used to purchase inventory.
• Paying rent on warehouses and business locations, and the real estate taxes associated with each.

19.

This is the return that you would expect to get on an item after the item has been sold and the cost of selling that item has been subtracted.

• net realizable value
• net income
• net profit
• profit

20.

Which of the following is the most common type of external user?

• investors
• suppliers
• the government
• banks