Compute the initial purchase price for an asset with book value of $34,800 and total accumulated depreciation of $85,200
What will be an ideal response?
Initial purchase price = Book value + Accumulated depreciation = $34,800 + $85,200 = $120,000
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The units-of-output depreciation method provides a good match of expenses against revenue
a. True b. False Indicate whether the statement is true or false
Which of the following is not an inherent risk associated with inventory?
a. Inventory accounts typically have a high volume of activity. b. Inventory is easily transportable c. Inventory may become obsolete. d. Inventory costing methods frequently change from one year to the next.
Answer the following statements true (T) or false (F)
1. Gross pay is the total amount of compensation earned by an employee after the deductions are made. 2. Net pay is the total amount of compensation that an employee takes home after the deductions are made. 3. The employer is required to directly deposit the employee's take-home pay into the employee's bank account. 4. The old age, survivors, and disability insurance component of FICA tax is imposed on the entire amount of an individual employee's earnings. 5. All earnings are subject to Medicare tax.
After initially recording an asset at cost, fair value is
A) the price at which an asset could be sold in a current transaction between independent parties. B) the actual, or historical, price at which the asset was acquired. C) the easiest value used to measure and record assets. D) verifiable at all future dates by referring to the invoice price paid for the asset.