Questions I to 10 are each worth one mark. 1. Which of the depreciation methods

Question

Questions I to 10 are each worth one mark. 1. Which of the depreciation methods is correct? following statements regarding a) A company can't (b) A company should use the method that is easiest. (c) A company must use the method that results in highest profit. (d) For each asset, which the benefits of the asset are expected to be (e) None of the above use more than one depreciation method l company must use the method that best matches the estimated pattern in 2. The Allowance for Doubtful Accounts is shown under (a) Expenses on the income statement. (b) Revenue on the income statement. (c) Current Liabilities on the statement of financial position. (d) Current Assets on the statement of financial position. (e) None of the above. 3. Depreciation is a process of (a) determining the asset's fair value. (b) asset valuation. (c) cost allocation. (d) determining the asset's residual value. (e) None of the above. 4. The carrying amount of an asset is equal to the (a) asset's fair value less its original cost. (b) "blue-book" amount relied on by secondary markets. (c) replacement cost of the asset. (d) asset's cost less accumulated depreciation. (e) None of the above. 5. Interest rates on notes and loans are usually stated as a(n) (a) monthly rate. (b) daily rate. (c) semi-annual rate. (d) annual rate. (e) None of the above 6. Marlboro Corporation had cash sales, prior to HST, of $90,000 for the month of June. Sales are subject to 13% harmonized sales tax (HST). Prepare the entry to record the sales. (a) Cash 101,700 90,000 Sales Tax Payable 11,700 90,000 90,000 (b) Cash 90,000 (c) Cash 101,700 Sales Revenue HST Tax Paid 11,700 (d) Cash 90,000 79,646 Sales Tax Payable 10,354 (e) None of the above.

Explanation / Answer

1) Option [d] 2) Option [d] 3) Option [c] 4) Option [d] 5) Option [d] 6) Option [a]

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.