answers for 17 , 18, 21

17. A company purchases a machine with an estimated useful life of 10 years. Six years after the purchase, the company revises the total estimated useful life to 12 years. As a result: a. The company must restate financial results for the first 6 years to show lower annual depreciation expense. b. The company's annual depreciation expense for the remaining years will decrease but the total depreciation expense over the life of the machine will not change. c. The company's annual depreciation expense for the remaining years will decrease and so will the total depreciation expense over the life of the machine. d. No adjustment is necessary. The company will simply recognize a different amount of gain or loss when it eventually sells the machine. 18. A company sells $600,000 of accounts receivable to a factor for cash. The factor retains a 3% service charge. The journal entry for this transaction will result in: a. An increase of $18,000 to the company's operating expenses. b. A decrease of $582,000 to the company's accounts receivable. c. An increase of $600,000 to the company's cash. d. A decrease of $18,000 to the company's allowance for doubtful accounts. 19. On Dec. 2, 2020 a company declares a cash dividend to be paid on Jan. 15, 2021. The Dec. 2 journal entry will: a. Decrease assets. b. Increase liabilities. c. Both a and b. d. Neither a nor b. 20. All of the following are normally found in the owners' equity section of a balance sheet except: a. Common stock. b. Additional paid-in capital. c. Net income. d. Retained earnings. 21. A transaction that increases a liability account may also: a. Increase an asset account. b. Increase owners' equity. c. Decrease an asset account. d. Increase a different liability account