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# Depreciation calculated on the straight-line basis: spreads the depreciable cost evenly over the asset's life. results in high expense in early...

Another accounting quiz that I need help with tonight.

Depreciaton calculaTed on The sTraighT-line basis: A. spreads The depreciable cosT evenly over The asseT's life. B. resulTs in high expense in early years, lower expense in laTer years. C. ignores The estmaTed salvage value. D. ignores The estmaTed useful life of The asseT. 2 poinTs Queston 2 ±he depreciaton of oFce equipmenT should be crediTed direcTly To The OFce EquipmenT accounT. ±rue ²alse 2 poinTs Queston 3 In July 2011, Wexler Company received \$50,000 as advance paymenT from subscribers for a series of ³ve concerTs. IT was crediTed To Unearned ±ickeT ²ees. ²our of The concerTs were held during 2011, and The ³nal one was held in ²ebruary 2012. If The company's ³scal year ends December 31, whaT adjustng enTry would be required aT The end of 2011? A. DebiT ±ickeT Revenue and crediT Unearned ±ickeT ²ees for \$10,000. B. DebiT ±ickeT Revenue and crediT Unearned ±ickeT ²ees for \$40,000. C. DebiT Unearned ±ickeT ²ees and crediT ±ickeT Revenue for \$40,000.
D. Debit Unearned Ticket Fees and credit Ticket Revenue for \$10,000. 2 points Ques±on 4 All the following are examples of prepaid expenses except: A. Prepaid Rent. B. Accounts Receivable. C. Supplies on Hand. D. Prepaid Insurance. 2 points Ques±on 5 When the accrual basis of accoun±ng is properly applied, adjus±ng entries are not necessary. True False 2 points Ques±on 6 Prepaid insurance is an asset, primarily because the policy can be surrendered and cash received in exchange.
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• ka_moderator
• Jul 20, 2016 at 1:46pm

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