Question : Multiple Choice Questions 61.Which method of depreciation not acceptable for financial : 1169044

 

Multiple Choice Questions 

61.Which method of depreciation is not acceptable for financial accounting purposes?   

A. the modified accelerated cost recovery system (MACRS)

 

B. the sum-of-the-years’-digits method

 

C. the declining-balance method

 

D. the straight-line method

 

 

 

 

62.Which method of depreciation is often used to depreciate the cost of cars, trucks and other motor vehicles?   

A. the straight-line method

 

B. the sum-of-the-years’-digits method

 

C. the declining-balance method

 

D. the units-of-output method

 

 

 

 

63.A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000. Under the double-declining-balance method, the depreciation expense for the first year of the asset’s useful life is   

A. $9,000.

 

B. $12,000.

 

C. $18,000.

 

D. $20,000.

 

 

 

64.A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000. Under the double-declining-balance method, the depreciation expense for the second year of the asset’s useful life is   

A. $9,000.

 

B. $12,000.

 

C. $18,000.

 

D. $20,000.

 

 

 

65.A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000. Under the straight-line method, the depreciation expense for the first year of the asset’s useful life is   

A. $9,000.

 

B. $18,000.

 

C. $10,000.

 

D. $20,000.

 

 

 

66.A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000. Under the straight-line method, the balance in the accumulated depreciation account, after the second year, will be   

A. $9,000.

 

B. $18,000.

 

C. $10,000.

 

D. $20,000.

 

 

 

67.The entry to record the sale of equipment used in a business may include a debit to   

A. the Equipment account.

 

B. the Gain on Sale of Equipment account.

 

C. the Accumulated Depreciation—Equipment account.

 

D. the Depreciation Expense account.

 

 

 

 

68.The method of depreciation that results in the same amount of depreciation expense each year is the   

A. units-of-output method.

 

B. straight-line method.

 

C. sum-of-the-years’-digits method.

 

D. declining-balance method.

 

 

 

 

69.The book value of an asset is   

A. the market value of the asset.

 

B. the portion of the asset’s cost that has not yet been charged to expense.

 

C. the acquisition cost shown in the asset account less the estimated salvage value.

 

D. the replacement cost of the asset.

 

 

 

 

70.An asset that cost $14,000 was sold for $9,000 cash. Accumulated depreciation on the asset was $7,000. The entry to record this transaction includes the recognition of   

A. a gain of $2,000.

 

B. a loss of $5,000.

 

C. neither a gain nor a loss.

 

D. a loss of $2,000.