On January 1, 2016, Lefty, Inc purchased a machine for $6,000. The estimated life and residual value were five years and $150, respectively. The machine will produce approximately 80,000 units over its life. In 2016 and 2017, the machine produced 10,000 and 15,000 units, respectively. In 2017, Lefty recorded $1,440 of depreciation expense. The depreciation method in use was the
A) activity method
B) sum-of-the-years'-digits method
C) double-declining-balance method
D) straight-line method
C
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One reason that a common-size statement is a useful tool in financial performance evaluation is that it enables the user to
a. make better comparisons of two companies of different sizes in the same industry. b. determine which companies in a single industry are of the same size. c. judge the relative potential of two companies of similar size in different industries. d. determine which companies in a single industry are of the same value.
In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities
Indicate whether the statement is true or false
Holding too much idle cash can reduce a firm's profitability
Indicate whether the statement is true or false
The purpose of statistical inference is to provide information about the
A. sample based upon information contained in the population. B. population based upon information contained in the sample. C. population based upon information contained in the population. D. mean of the sample based upon the mean of the population.