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4. A company purchases and installs a piece of equipment on ( 1 / 1 / X X ) for ( $ 800,000 ). The
4. A company purchases and installs a piece of equipment on ( 1 / 1 / X X ) for ( $ 800,000 ). The equipment has a physical life of 10 years but will only provide revenue for 6 years. The salvage value at the end of 10 years is ( $ 60,000 ) and at the end of 6 years is ( $ 80,000 ). What is the yearly depreciation rate if the company uses straight-line depreciation? A. ( $ 72,000 ) B. ( $ 80,000 ) C. ( $ 120,000 ) D ( $ 133,333 ) 5. There are two methods to amortize bond discounts and premiums. They are: A. Direct and indirect. B. Indenture and Debenture Bonds. C. Straight-line and Effective interest rate. D. Par and no par. 6. Investment banksis are companies that: A Advise pre-IPO companies on how to go public. B. Often buy the entire stock issue and the resell it. C. Will provide legal and accounting advise to the company going public. D. All of the above. 7. The first step in preparing a Statement of Cash flows is to: A. Prepare a comparative income statement. B. Prepare a balance sheet. C. Complete the adjusting entries. D. Preparing comparative balance sheet. 8. The major sections of a Statement of Cash Flows are: A. Assets, Liabilities, and Owners Equity B. Financial activities, investing activities, and owner activities. C. Operating activities, investing activities, and financing activities D. None of the above.
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