The primary qualities of accounting information that

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20. The primary qualities of accounting information that increase the usefulness to decision makers are A) relevance and cost-benefit. B) reliability and comparability. C) reliability and relevance. D) materiality and relevance. E) None of these is correct. 21. Expresso Company purchased a machine that cost $28,000 and had an estimated useful life of 7 years (no residual value) on January 1, 20A. The company uses the straight- line method of amortization. The net book value at the end of 20B , would be 22. During 20B, Blue Corporation incurred operating expenses amounting to $100,000 of which $75,000 were paid in cash; the balance will be paid in January 20C. Transaction analysis of operating expenses for 20B, should reflect only the following 14
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23. The primary difference between revenues and gains is 24. On April 1, 20A, Allen Company signed a $12,000, one-year, 10 percent note payable. At due date, April 1, 20B, the principal and interest will be paid. Interest expense should be reported on the income statement (for the year ended December 31, 20A) as A) $ 1,200. B) $ 900. C) $ 800. D) $ 700. E) None of the amounts is correct. 25. Which of the following items about the statement of cash flows is correct? 15
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Answer Key to Multiple Choice 16
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