1.All of the following are needed for the calculation of straight-line depreciation except

a.units produced

b.residual value

c.estimated life

d.cost

2.The calculation for annual depreciation using the units-of-activity method is

a.(Depreciable Cost/Yearly Output) Estimated Output

b.(Initial Cost/Estimated Output) Actual Yearly Output

c.Depreciable Cost/Yearly Output

d.(Depreciable Cost/Estimated Output) Actual Yearly Output

3.The formula for depreciable cost is

a.Initial Cost - Accumulated Depreciation

b.Initial Cost - Residual Value

c.Initial Cost + Residual Value

d.Depreciable Cost = Initial Cost

4.Which of the following is an example of a capital expenditure?

a.cleaning the carpet in the front room

b.replacing an engine in a company car

c.replacing all burned-out light bulbs in the factory

d.tune-up for a company truck