For Proposal 3, the incremental depreciation expense for year 3 is ________. (See Table 11.2)

A) $21,000
B) $42,000
C) $47,850
D) $50,850


C

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_____ are the two kinds of spans of control.

A. Tall and short B. Flat and broad C. Tall and hollow D. Hierarchy and nonhierarchy E. Narrow and wide

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The account to which an expense account is closed is called

a. Drawing; b. Closing Account; c. Income Summary; d. Net Income; e. Cash Expense.

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Which of the following is the best description for the purpose of an estate created for divorce or bankruptcy?

a. To pay for the all of the legal fees in filing a chapter 7, 11, or 13 bankruptcy or to pay the legal fees of a divorce b. To protect the assets of the party filing bankruptcy so that no further losses are realized c. To settle the debts of the debtor or divorce partner of which the Bankruptcy or Divorce Court has control d. To hold only the physical assets of the divorce partner or debtor for the period of the bankruptcy or divorce

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In calculating cash flows from operating activities using the indirect method, an increase in inventories is:

a. added to net income. b. deducted from net income. c. ignored because it does not affect cash. d. not reported on a statement of cash flows.

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