_______________ spreads the depreciable cost evenly over the estimated useful life of the asset.

a. Straight-line method

b. None of the given options

c. Units of production method

d. Declining-balance method

______________ is defined as increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases in liabilities that result in increases in equity, other than those relating to contributions from equity participants.

a. Income

b. Liabilities

c. Expenses

d. None of these answers

From the following given options recognize the accounting concept which comes under the scope of Conceptual framework of financial reporting.

a. Business entity assumption

b. Going concern assumption

c. Revenue recognition assumption

d. None

Moosa LLC purchased a machinery for OMR 4500 and spent OMR 1500 for its transportation, assembling and installation. The company is expecting the salvage value of the machine after its useful life is OMR 500. The company decided to charge OMR 1100 depreciation in each year by following straight-line depreciation method. From the following given options, identify the expected useful life of the asset.

a. 5 Years

b. 3.63 Years

c. 5.4 Years

d. None of the given options

Assume that the total assets, liabilities, Equity of the firm are OMR 40000, OMR 10000 and OMR 30000 respectively.The company sold OMR 3000 furniture for its customer and received notes receivables for OMR 4500. What is the effect of the above transaction on different elements of financial position of the company?

a. None of the given options

b. Assets of the company increase by OMR 1500 and capital of the company increase by OMR 1500

c. Assets of the company decrease by OMR 3000 and capital of the company decrease by OMR 3000

d. Assets of the company increase by OMR 4500 and capital of the company increase by OMR 4500