Key - Quiz_2 - ACC 5110 QUIZ 2 Name: KEY Winter 2010 Part...

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ACC 5110 Winter 2010 QUIZ 2 Name : KEY Part I. Choose the best answer. 1. Depreciation of noncurrent operating assets is an accounting process for the purpose of a. reporting declining asset values on the balance sheet. b. allocating asset costs over the periods benefitted by use of the assets. c. accounting for costs to reflect the change in general price levels. d. setting aside funds to replace assets when their economic usefulness expires. 2.   On January 1 Stockton Company acquired a machine with a four-year useful life. Stockton estimates the salvage value of the machine will be equal to ten percent of the acquisition cost. The company is debating between using either the double-declining-balance method or the sum-of-the-years'-digits method of depreciation. Comparing the depreciation expense for the first two years computed using these methods, the depreciation expense for the double- declining-balance method (compared to the sum-of-the-years'-digits method) will match which of the patterns shown below? First Year
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This note was uploaded on 01/18/2011 for the course ACC 5110 taught by Professor Lee during the Winter '10 term at Wayne State University.

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Key - Quiz_2 - ACC 5110 QUIZ 2 Name: KEY Winter 2010 Part...

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