Quiz AC-2 - 11. Depreciation (Points: 1) is a reduction of...

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11. Depreciation (Points: 1) is a reduction of cost to fair value for fixed assets. can increase or decrease the book value of fixed assets. is a systematic and rational allocation of cost of fixed assets to each period in which they are used. is not required for assets with useful lives over ten years. 12. Straight-line depreciation for a $20,000 vehicle that is expected to be used for 5 years with a residual value of $5,000 is (Points: 1) $5,000 $4,000 $3,000 $2,000 13. If a company forgets to count the merchandise that is stored off site, (Points: 1) Ending inventory is too low and Net Income is too low. Ending inventory is too low and Net Income is too high. Ending Inventory is too high and Net Income is too low. Ending Inventory is too high and Net Income is too low. 14. When an asset is fully depreciated, the book value of the asset is (Points: 1) at its fair value. at its residual (salvage) value. at its expected selling price.
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This note was uploaded on 06/20/2010 for the course FINA 6266 taught by Professor Burt during the Spring '10 term at University of Arkansas for Medical Sciences.

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Quiz AC-2 - 11. Depreciation (Points: 1) is a reduction of...

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