The most widely used depreciation method for tax and financial reporting is

a.

SL

b.

SOYD

c.

DDB

d.

MACRS

True of false. For independent projects use of equal life service is not required.

Select one:

True

False

When assessing mutually exclusive alternatives using Present Worth Analysis, which alternative/alternatives should be selected?

a.

Select all with positive PW

b.

Select the alternative with the most positive PW

c.

Select none unless all PW are positive

d.

Discard the negative PW and select all with positive PW

An asset has been in service for 10 years and has been depreciated on the company books using the MACRS method. This asset is to be sold at the end of year 12 to make way for new technology. This asset will be sold at a price determined by its.

a.

Book value

b.

Depreciation

c.

Basis

d.

Market value

Which financial accounting tool is used to record all financial transactions

a.

ledger

b.

income statement

c.

trial balance

d.

journal