The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the

straight-line method

double-declining-balance method

units-of-production method

time-valuation method

On June 1, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours, which ends on December 31.

Using straight-line depreciation, calculate depreciation expense for the final (partial) year of service.

$12,500

$30,000

$17,500

$40,000

The amount of the promissory note plus the interest earned on the due date is called the

a.face value.

b.interest value.

c.maturity value.

d.issuance value.

"To maintain public confidence and trust in the financial reporting of companies" is the purpose of

the FASB

the IRS

Sarbanes-Oxley

GAAP

The cash account in the company's ledger is a(n)

liability with a normal debit balance

asset with a normal debit balance

liability with a normal credit balance

asset with a normal credit balance

Credit memos from the bank

show the bank has collected a note receivable for the customer

show that a company has deposited a customer's NSF check

decrease a bank customer's account

are used to show a bank service charge

A debit or credit memo describing entries in the company's bank account may be enclosed with the bank statement. An example of a credit memo is

a promissory note left for collection

notification that a customer's check for $375 was recorded by the company as $735 on the deposit ticket

deposited checks returned for insufficient funds

a service charge