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Name: 15) The formula to compute anqual straight-line depreciation is: A) Depreciable cost divided by useful life in units B) (Cost plus salvage value) divided

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Name: 15) The formula to compute anqual straight-line depreciation is: A) Depreciable cost divided by useful life in units B) (Cost plus salvage value) divided by the useful life in years. C) (Cost minus salvage value) divided by the useful life in years D) Cost multiplied by useful life in years E) Cost divided by useful life in units 16) The total cost of an asset less its accumulated depreciation is called A) Historical cost. B) Book value. C) Present value. D) Current (market) value The depreciation method that charges the same amount of expense to each period of the asset's useful life is depreciation. eclining-balance depreciation D) Units-of-prodaction depreciation Straight-line depreciation. E) Modified accelerated cost recovery system (MACRS) depreciation. 18) If a company has advance ticket sales totaling $2,000,000 for the upcoming foothall season, the would be journalized as: A) Debit Sales, credit Usearned Revenue. B) Debit Uncarned Revenue, credit Sales C) Debit Cash, credit Unearned Revenue. D) Debit Unearned Revenue, credit Cash. E) Debit Cash, credit Ticket sales payable. 19) A contingent liability is: A) Always of a specific amount 8) A potential obligation that depends on a future event arising from a past transaction or event C) An obligation not requiring future payment D) An obligation arising from the purchase of goods or services on credit. E) An obligation arising from a future event. 20) Contingent liabilities are recorded or disclosed unless they are A) Probable and estimable. B) Remote. C) Reasonably possible. D) Probable and not estimable. E) Possible and estimable. 21) Contingent liabilities must be recorded if A) The future event is probable and the amount owed can be reasonably estimated. B) The future event is remote. C) The future event is reasonably possible but not estimable D) The amount owed cannot be reasonably estimated. E) The future event is probable but not estimable

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