18. The calculation of depreciation using the diminishing-balance method: a) ignores residual value in determining the amount to which a constant rate is applied. b) multiplies a constant percentage times the previous year's depreciation expense. c) yields an increasing depreciation expense each period. d. multiplies a diminishing percentage times a constant carrying amount. 19. Which of the following methods of depreciation results in the highest cash flow? a) straight-line. b) diminishing-balance. c) units-of-production. d) all of these result in the same cash flow. 20. It is appropriate to stop recording depreciation expense when the asset's: a) depreciable cost is less than its fair value. b) carrying amount exceeds its fair value. c) carrying amount equals its residual value. d) residual value equals total accumulated depreciation. 21. A current liability is a debt that can reasonably be expected to be paid: a) within one year. b) between 6 months and 18 months. c) out of currently recognized revenues. d) out of cash currently on hand. 22. Cutes National Bank agrees to lend Sunny Screen Company $ 80,000 on January 1. Sunny Screen Company signs an $ 80,000, 9-month, 5% note. What is the adjusting entry required if Sunny Screen Company prepares financial statements on June 30? 2,000 ........................................... .............. 2,000 2,000 2,000 a) Interest Expense...... Interest Payable................. b) Interest Expense... Cash ...................... c) Interest Payable ...... Cash d) Interest Payable Interest Expense............ 2,000 2,000 2,000 2,000