Purchasing a truck for $50,000 cash with a four-year useful life and $6,000 salvage value is an example of a deferred expense.
Answer the following statement true (T) or false (F)
True
The expense will be deferred until the truck is used instead of being recognized as soon as the cash payment is made. Assuming the company uses the straight-line depreciation method, it would calculate the depreciation expense as ($50,000 ? $6,000)/4-year life = $11,000 depreciation expense. The company would recognize $11,000 depreciation expense in Year 1, Year 2, Year 3, and Year 4.
You might also like to view...
Cara's manager notices that she exhibits an internal locus of control when she speaks about her work. Her manager should
A. give Cara a lot of positive feedback. B. ensure that Cara has a highly structured job. C. give Cara a job with much social contact with coworkers and customers. D. closely supervise Cara's work. E. provide an incentive structure to pay Cara.
Describe how financial markets influence the labor relations environment.
What will be an ideal response?
Items on the balance sheet that represent amounts owed to others are termed
A) assets. B) liabilities. C) revenues. D) expenses. E) none of the above.
In order to establish the tort of false imprisonment, a person must show imprisonment for: A)any amount of time
B)at least one minute. C)at least ten minutes.? D)at least one hour.