Question
*just the answers are fine* 12)A company purchased a computer for $5,400 with a salvage value of $400. It has an estimated life of 10
*just the answers are fine*
12)A company purchased a computer for $5,400 with a salvage value of $400. It has an estimated life of 10 years. What would be the depreciation expense for the second year of its useful life using the double-declining balance method?
$1,080 | ||
$800 | ||
$864 | ||
$500 |
13)
A company sold $20,000 of equipment, accepting a 30-day note bearing interest at 12% per year (assume a 360 day year) for the $20,000. The entry to record the receipt of the amount collected at maturity will include which of the following, assuming $120 of interest had previously been accrued?
a debit to notes receivable | ||
a credit to interest receivable | ||
a debit to interest receivable | ||
a debit to interest revenue |
14)
Which of the following is not true?
Handling cash should be separate from recordkeeping of cash. | ||
Cash receipts should be promptly deposited in a bank | ||
Cash does not need any security if it is counted by a manager. | ||
Cash is the most liquid of all assets |
15)
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A company's current inventory consists of 250 units purchased at $15 per unit. Replacement cost has now fallen to $12 per unit. Calculate the value of this company's inventory at the lower of cost or market.
$3,000
$2,700
$2,550
$2,600
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