QUESTION 5 1. If accrued liabilities are underestimated in the current period, the reported income in the same period will be higher than it should be True False 4 points 1. QUESTION 6 Walgreens purchases a depreciable asset with a cost of $1,000, a four-year useful life, and the salvage value of $0. For financial reporting purposes, it depreciates the asset using the straight-line method. For tax reporting, it depreciates the asset using the double-declining-balance method. The firm's income before depreciation is $2,000, and the tax rate is 40%. Which of the following does not incur in Year 1? Choose all that apply. QUESTION 7 Unearned revenue occurs when a firm receives cash and provides any goods or services. True False QUESTION 8 1. Lowes has the following return policy: our customer "may return a purchase for a refund, merchandise credit, or exchange to any of our stores nationwide or to our returns processing center." The firm should report revenue when its customers return their purchases. True False QUESTION 9 1. Eversource purchased a new machine for $84,449. This machine is expected to operate for 10 years, after which it will be sold for $8,382. How much is the second year's depreciation expense if the company uses the double-declining-balance method? (Round your answer to zero decimal places and omit the "$" sign. For example, if your answer is $1,000.2, type in "1000") QUESTION 5 1. If accrued liabilities are underestimated in the current period, the reported income in the same period will be higher than it should be True False 4 points 1. QUESTION 6 Walgreens purchases a depreciable asset with a cost of $1,000, a four-year useful life, and the salvage value of $0. For financial reporting purposes, it depreciates the asset using the straight-line method. For tax reporting, it depreciates the asset using the double-declining-balance method. The firm's income before depreciation is $2,000, and the tax rate is 40%. Which of the following does not incur in Year 1? Choose all that apply. QUESTION 7 Unearned revenue occurs when a firm receives cash and provides any goods or services. True False QUESTION 8 1. Lowes has the following return policy: our customer "may return a purchase for a refund, merchandise credit, or exchange to any of our stores nationwide or to our returns processing center." The firm should report revenue when its customers return their purchases. True False QUESTION 9 1. Eversource purchased a new machine for $84,449. This machine is expected to operate for 10 years, after which it will be sold for $8,382. How much is the second year's depreciation expense if the company uses the double-declining-balance method? (Round your answer to zero decimal places and omit the "$" sign. For example, if your answer is $1,000.2, type in "1000")
