题目内容

Atthebeginningoflastyear,BettyCorporationpurchasedapieceofheavyequipmentfor$34,000.Theequipmenthasalifeoffiveyears.Theestimatedresidualvalueis$4,000.Depreciationexpenseforyear2usingdouble-declining-balancewouldbe:

A. $7,200
B. $7,520
C. $8,060
D. $8,160

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Whichofthefollowingcostswillnotbeexpensedonacompany’sincomestatement?

A. Thecostofthecompany’sland.
B. Thecostofthecompany’sofficebuilding.
C. Thecostofthecompany’sdesk.
D. Thecostofthecompany’scomputer.

Thedepreciationprocessfollowsthe________principle.

A. revenuerecognition
B. expenserecognition
C. disclosure
D. consistency

Anassetis________whenanotherassetcandothejobmoreefficiently.

A. fullydepreciated
B. old
C. physicallyworn
D. obsolete

Whichofthefollowingdepreciationmethodsbestappliestothoseassetsthatgenerategreaterrevenueearlierintheirusefullives?

A. Straight-linemethod
B. Depletionmethod
C. Double-declining-balancemethod
D. Units-of-productionmethod

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