On January $1,2007,$ Franz Company purchased a truck that cost $$22,000.$ The truck had an expected useful life of $5$ years and a $$4,000$ salvage value. The amount of depreciation expense recognized in $2007$ assuming that Franz uses the double declining balance method is:

A$.$ $$4,320.$

B$.$ $$5,280.$

C$.$ $$7,200.$

D$.$ $$8,800.$

On January $1,2007,$ Franz Company purchased a truck that cost $$22,000.$ The truck had an expected useful life of $5$ years and a $$4,000$ salvage value. The amount of depreciation expense recognized in $2008$ assuming that Franz uses the double declining balance method is:

A$.$ $$4,320.$

B$.$ $$5,280.$

C$.$ $$7,200.$

D$.$ $$8,800.$

Which of the following statements concerning internal controls is true?

A$.$ Internal administrative controls are designed to limit the amount of funds spent on investments.

B$.$ The control procedure, separation of duties, prohibits the employment of a husband and wife or other closely related parties within the same company.

C$.$ Internal accounting controls are limited to the policies and procedures used to protect the company from embezzlement.

D$.$ Strong internal controls provide reasonable assurance that the objectives of a company will be accomplished.

Which of the following statements accurately describes a fidelity bond?

A$.$ Insurance that the company buys to protect itself from loss due to employee dishonesty.

B$.$ Proper procedures for processing transactions.

C$.$ Procedures to provide reasonable assurance that the objectives of a company are accomplished.

D$.$ Guidelines or policies that limit the actions of different levels of management.

What documentation issued by a bank increases a company's checking account balance at the bank?

A$.$ balance sheet

B$.$ debit memo

C$.$ credit memo

D$.$ certified check

At March $31,$ Carrie Co$.$ had a balance in its cash account of $$5,500.$ At the end of March the company determined that it had outstanding checks of $$900,$ deposits in transit of $$600,$ a bank service charge of $$20,$ and an NSF check from a customer for $$200.$ The true cash balance at March $31$ is:

A$.$ $$5,200$

B$.$ $$5,280$