The use of depredation is in accordance with a. The matching principle. b. The historic cost principle. c. The full disclosure principle. d. The fair market value (FMV) principle. Depreciation from an accounting perspective is: a. The recognition of an expense that has been paid. b. The allocation of an asset's cost over its productive life. c. Obsolescence. d. Only applicable to the cash basis of accounting. All of the following arc acceptable cost allocation methods except: a. Depletion. b. Depreciation. c. Amortization. d. Forminization. The depreciation method that initially ignores residual value is a. Straight line. b. Sum of the years' digits. c. Declining balance. d. Specific identification Depiction would be computed for: a. Goodwill. b. Accounts Receivable. c. Office Equipment. d. A coal mine owned by the company. ABC purchases $10, 000 of inventory on March 5, terms 2/10, n/30, fob destination. Freight was $100. Payment was made March 12 for: a. $ 9.800. b. $ 9, 900. c. $10, 000. d. $10, 100. XYZ purchased goods for $5, 000 f.o.b. shipping point; sales tax $300 and freight $100. Under a perpetual inventory system, the journal entry is: a. Debit merchandise inventory credit accounts payable $ 5, 000. b. Debit merchandise inventory credit accounts payable $ 5, 300. c. Debit merchandise inventory credit accounts payable $ 5, 400. d. Debit Purchases credit accounts payable $ 5, 400