Many companies that use the declining-balance method of depreciation switch to the straight-line method at some point in the life of a depreciable asset. When does that switch normally occur?
A. never, since one method must be applied consistently throughout the life of an asset
B. in the last quarter of the life of the asset
C. when the depreciation cost under the accelerated method exceeds the depreciation cost under the straight-line method
D. midpoint in the life of the asset
Answer: D
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Board members of a nonprofit organization are calculating the salary offer for a new chief executive officer (CEO). The board wants to ensure that the salary paid to the new CEO is fair for the knowledge and skills needed to perform the job well. The board members are practicing ______.
A. open compensation B. closed competition C. nonprofit distributing D. noncompulsory distributions
____________ is the creation and development of a new product or service.
a. Creativity b. Innovation c. Prescient d. Vision
On September 1, Year 1, West Company borrowed $24,000 from Valley Bank. West agreed to pay interest annually at the rate of 8% per year. The note issued by West carried an 18-month term. West Company has a calendar year-end. What is the amount of interest expense that will be reported on West's income statement for Year 1?
A. $480 B. $0 C. $192 D. $640
Use the following information to calculate the net cash provided or used by financing activities for the Streams Corporation:(a) Net income, $10,000(b) Sold common stock for $40,000 cash(c) Paid cash dividend of $13,000(d) Paid bond payable, $28,000(e) Purchased equipment for $12,000 cash
What will be an ideal response?