Question

Just want to double check my answers. and it its wrong, which one is the corrwcr answer.

A) $147,368 B) 552.632 $200,000 D) $140,000 6) Which of the following items should be depreciated? Tangible property, plast, and equipment other than and B) Intangible property C) Land D) Natural resources 7) Which of the following accounting principles requires depreciation? A) The revenue recognition principle B. The matching principle C) The reliability principle D) The entity concept 8) Which of the following depreciation methods does NOT use a residual value in the depreciation formula A) Units-of-production ks) Double-declining-balance C) Straight-line D) First-In, First Out 9) Which of the following is TRUE when the estimate of an asset's useful life is increased? A) The new estimate is ignored until the last year of the asset's life. B) Annual depreciation expense is increased for the remaining years of the asset's life. C) Prior years' financial statements must be restated ID) Annual depreciation expense is decreased for the remaining years of the asset's life. 10) A company purchased a computer on July 1, 2012. The computer has an estimated useful life of 5 years and will have no salvage value. It was purchased for S10,000. It is estimated that the computer can be used for 5.000 hours. The computer was used for 450 hours during 2012. If the goal is to record higher depreciation expense in the earlier years, which method should be used? A) Units-of-production B) Straight-line Double declining-balance D) First-In, First-Out 11) An asset was purchased for $12,000. The asset's estimated useful life was 5 years and its residual value was $2,000. Straight-line depreciation was used. How much gain or loss is reported in the asset is sold for $9.000 at the end of the first year? AM $1,000 gain B) $2,000 loss C) No gain or loss D) $1,000 loss (12) A plant asset is fully depreciated when the book value is: A) greater than the salvage value. B) greater than the market value. equal to the salvage value Page 2 of 6

Answer 1

6. A. Tangible property, plant and equipment, other than land.

7. B. The matching principle.

8. B. Double declining balance.

9. D. Annual depreciation expense is decreased for the remaining years of the asset's life.

10. C. Double declining balance

11. D. $ 1,000 loss.

Book value at end of first year = $ 12,000 - $ 2,000 = $ 10,000

Gain ( loss ) on disposal = $ 9,000 - $ 10,000 = $ ( 1,000) loss.

12. C. Equal to the salvage value.

13. B. No gain or loss.

14. D. $ 425,000.

15. D. $ 50,000.

16. B.

17. D. Interest payable is credited.

18. A. Unearned revenue.

26. C. A debit to estimated warranty payable for $ 24,000.

27. B. $ 1,050 credit.

28. C. $ 504. 08

29. D. Cash receipts from customers should be separated from the accounting for accounts receivable.

30. C. To separate the duties of human resources personnel and accounting personnel.