The depreciation method that estimates the number of units of service or output that can be provided by an asset and allocates the depreciable cost of the asset on the basis of the use or output during each period is called the
a. declining-balance method.
b. sum-of-the-years'-digit method.
c. units-of-production method.
d. straight-line method.
c
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Which of the following is true about a strategic market plan?
A) It is a short-term marketing strategy. B) It is referred to as tactical marketing strategy. C) It lacks specific performance objectives. D) It has a 1-year time horizon. E) It has a 3- to 5-year time horizon.
Exhibit 14-10 Hawk issued $500,000 of its ten-year 5% bonds for $463,197 on October 1, 2016 so as to yield an effective rate of 6%. Interest is paid each October 1 and April 1. ?Refer to Exhibit 14-10. Assuming Hawk uses the effective interest method and reversing entries, the entry to record the payment of interest on April 1, 2017, would include (rounded to the nearest dollar)
A) ?a credit to Discount on Bonds Payable for $1,396. B) ?a debit to Discount on Bonds Payable for $1,396. C) ?a debit to Interest Expense for $11,580. D) ?a credit to Cash for $12,500.
Which of the following current assets will not generate cash in the future?
a. Prepayments b. Accounts receivable c. Inventory d. Marketable securities e. Notes receivable
Black Hills Manufacturing has two processing departments, Department I and Department II. During the year, direct materials worth $38,000 purchased on account were assigned to Department I. At the end of the year, when the production cost report for Department I was prepared, Black Hills assigned $40,000 to the units transferred from Department I to Department II. The journal entry to record the transfer of units to Department II will ________.
A) debit Work-in-Process Inventory—Department II for $38,000 and credit Work-in-Process Inventory—Department I for $38,000 B) debit Work-in-Process Inventory—Department I for $40,000 and credit Work-in-Process Inventory—Department II for $40,000 C) debit Work-in-Process Inventory—Department I for $38,000 and credit Work-in-Process Inventory—Department II for $38,000 D) debit Work-in-Process Inventory—Department II for $40,000 and credit Work-in-Process Inventory—Department I for $40,000