51. A company’s annual accounting period ends on December 31. During the current year, a depreciable asset thatcost $24,000 was purchased on October 1. The asset has a $1,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a six-year life. What is the total depreciation expense for the current year?
A. $3,833.33
B. $958.33
C. $4,000.00
D. $1,000.00
E. $1,041.67
52. A company’s annual accounting period ends on September 30. During the current year, a depreciable asset thatcost $16,000 was purchased on January 1. The asset has a $2,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a four-year life. What is the total depreciation expense for the current year?
A. $4,000
B. $3,000
C. $3,500
D. $2,625
E. $875
53. Many companies use accelerated depreciation in computing taxable income because:
A. It is required by the tax rules.
B. It is required by financial reporting rules.
C. It postpones tax payments until later years and the company can use the resources now to earn additional income before payment is due.
D. Using it causes a company to use higher income in the early years of the asset’s useful life.
E. The results are identical to straight-line depreciation.
54. Both the straight-line depreciation method and the double-declining-balance depreciation method:
A. Produce the same total depreciation over an asset’s useful life.
B. Produce the same depreciation expense each year.
C. Produce the same book value each year.
D. Are acceptable for tax purposes only.
E. Are the only acceptable methods of depreciation for financial reporting.
55. Total asset turnover is used to evaluate:
A. The efficiency of management’s use of assets to generate sales.
B. The need for asset replacement.
C. The number of times operating assets were sold during the year.
D. The cash flows used to acquire assets.
E. The relation between asset cost and book value.
56. Total asset turnover is calculated by dividing:
A. Gross profit by average total assets.
B. Average total assets by gross profit.
C. Net sales by average total assets.
D. Average total assets by net sales.
E. Net assets by total assets.
57. A company had average total assets of $897,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company’s total asset turnover is equal to:
A. 0.82
B. 0.90
C. 1.09
D. 1.11
E. 1.26
58. Dell had net sales of $35,404 million. Its average total assets for the period were $14,502 million. Dell’s total asset turnover is equal to:
A. 0.40
B. 0.35
C. 1.45
D. 2.44
E. 3.50
59. Acme Company has a total asset turnover of 1.25 for the current period. What are net sales given that average total assets are $40,000?
A. Net sales cannot be computed from the given information
B. $50,000
C. $32,000
D. $1.25 million
E. $90,000
60. Land improvements are:
A. Assets that increase the usefulness of land and, like land, are not depreciated.
B. Assets that increase the usefulness of land but that have a limited useful life and are subject to depreciation.
C. Included in the cost of the land account.
D. Expensed in the period incurred.
E. Also called basket purchases.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more