Questions from Financial Accounting

Q: Maks, Inc., uses straight-line depreciation for all of

Maks, Inc., uses straight-line depreciation for all of its depreciable assets. Maks sold a used piece of machinery on December 31, 2017, that it purchased on January 1, 2016, for $10,000. The asset ha...

Q: Under what method(s) of depreciation is an asset’s net

Under what method(s) of depreciation is an asset’s net book value the depreciable base (the amount to be depreciated)? a. Straight-line method b. Declining-balance method c. Units-of-production meth...

Q: For each of the following transactions, determine whether cash flows from

For each of the following transactions, determine whether cash flows from operating activities will increase, decrease, or remain the same: a. Purchased merchandise for cash. b. Paid salaries and wage...

Q: A company wishes to report the highest earnings possible for financial reporting

A company wishes to report the highest earnings possible for financial reporting purposes. Therefore, when calculating depreciation, a. It will follow the MACRS depreciation tables prescribed by the I...

Q: How many of the following statements regarding goodwill are true?

How many of the following statements regarding goodwill are true? ∙ Goodwill is not reported unless purchased in an exchange. ∙ Goodwill must be reviewed annually for possible impairment. ∙ Impairment...

Q: Company X is going to retire equipment that is fully depreciated with

Company X is going to retire equipment that is fully depreciated with no residual value. The equipment will simply be disposed of, not sold. Which of the following statements is false? a. Total assets...

Q: Assume you work as a staff member in a large accounting department

Assume you work as a staff member in a large accounting department for a multinational public company. Your job requires you to review documents relating to the company’s equipment purchases....

Q: When recording depreciation, which of the following statements is true?

When recording depreciation, which of the following statements is true? a. Total assets increase and stockholders’ equity increases. b. Total assets decrease and total liabilities increase. c. Total a...

Q: Irish Industries purchased a machine for $65,000 and is

Irish Industries purchased a machine for $65,000 and is depreciating it with the straight-line method over a life of 10 years, using a residual value of $3,000. At the beginning of the sixth year, a m...

Q: What is the present value factor for an annuity of five periods

What is the present value factor for an annuity of five periods and an interest rate of 10%? a. 0.62092 b. 4.32948 c. 3.79079 d. 7.72173