1. A main accounting issue for plant assets is:
A) Computing the cost of the plant assets.
B) Matching the costs of plant assets against revenues for the periods they benefit.
C) Accounting for repairs and improvements to plant assets.
D) The disposal of plant assets.
E) All of the above.
2. Nelson Company purchased equipment on July 1 for $27,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment's salvage value is $3,500, the amount of monthly depreciation expense Nelson should recognize is:
3. A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $200. This adjusting entry results in:
A) $200 less in net income.
B) $200 more in net income.
C) $200 difference between the debit and credit columns of the Unadjusted Trial Balance.
D) $200 of prepaid insurance.
E) An error in the financial statements.
4. A company borrowed $10,000 by signing a 180-day promissory note at 11%. The total interest due on the maturity date is.
Recently Asked Questions
- Please refer to the attachment to answer this question. This question was created from CON 124 PART I.docx.
- calculate the osmotic pressure for 1% solution of NaCl at 30C temperature
- Please refer to the attachment to answer this question. This question was created from QRB501_r11_Week_6_Balance_Sheets_and_Income_Statement.xls.xlsx.