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Question
An increase in accumulated depreciation:
a. increases total assets.
b. decreases total assets.
c. decreases the current ratio.
d. increases the quick ratio.
Answer
This answer is hidden. It contains 54 characters.
Related questions
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A machine was purchased on January 1 for $100,000. The machine has an estimated useful life of 5 years with a salvage value of $20,000. Under the straight-line method, the book value and the accumulated depreciation of the machine at the end of year two is respectively,
a. $60,000 and $40,000
b. $68,000 and $32,000
c. $40,000 and $60,000
d. $48,000 and $32,000
Q:
A machine was purchased on January 1 for $50,000. The machine has an estimated useful life of 10 years with a salvage value of $2,000. Under the double-declining-balance, depreciation expense for each of the first two years is, respectively,
a. $12,000 and $12,000.
b. $10,000 and $8,000.
c. $12,000 and $9,500.
d. $12,500 and $12,500.
Solution: $50,000 x 2/10 and ($50,000 - $10,000) x 2/10
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Sandeep Inc. uses double-declining-balance depreciation for an asset with a 4-year life expectancy and no salvage value. Depreciation expense for the second year of the asset's life is calculated by:
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b. [2 x (Cost Salvage Value]/4
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d. [2 x Cost]/4
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Which one of the following depreciation methods will typically result in the smallest earnings per share during the early periods of an asset's life?
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Accumulated depreciation is an account which:
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b. is a long-term liability.
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A significant difference in depreciation accounting between US GAAP and IFRS accounting is that in IFRS:
a. Management has the option of periodically revaluing property, plant and equipment to market value
b. Management is mandated to revaluing property, plant and equipment to market value
c. Management may use hypothetical future value in depreciating assets
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The shareholders' equity section of Maven Corporation's balance sheet as of December 31, 2014 is as follows: Common stock, $1 par; authorized, 6,000 shares; 2,000 shares issued
$ 2,000 Additional paid-in capital
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On January 1, 2014, Enron Corporation issued a 4-year, 7%, $9,000 bond payable. Beginning in 2015, interest is payable annually every January 1. The market rate of interest at issuance is 9%. How much are the interest payments by Enron? Why is the amount of interest expense different than the cash payments?
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On January 1, 2014, Mango Corporation issued a 3-year, 4%, $3,000 bond payable. Beginning in 2015, interest is payable every year on January 1 over the life of the bond. The market rate of interest on January 1, 2014 is 6%. What are the proceeds received by Mercer from the issue of this bond on January 1, 2014?