1.In accounting, depreciation is the:

Select one:a.

sale of an asset.

b.

method of spreading the cost of an asset over its useful life.

c.

decline in market value of an asset.

d.

estimation of an asset's current value.

2.

The profit of All goods, a department store decreased sharply during 2016. Matt Southern, manager of the store, anticipates the need for a bank loan in 2017. Late in 2016, Matt instructs the store's accountant to record a $2000 sales of furniture to the southern family, even though the goods won't be shipped from the manufacturer until January 2017. He also tells the accountant not to make the following 31 Dec 2016 adjusting entries:

Salaries owed to employees				$900
prepaid insurance that has expired				400
The overall effects of these transactions on the store's assets are: assets are overstated by: