Friday, March 8, 2019

Accounting for managerial decisions

Which of the following cost related to the purchase of production equipment incurred by BBC follow during 2013 would be considered an set down (revenue expenditure)? B. Purchase price of the equipment less the cash discount c. Repair and criminal maintenance costs during the equipments first socio-economic class of service d. Transportation charges to deliver the equipment to BBC Company 4. Clear Window Cleaners purchased new cleaning equipment at the kickoff of 2013. The equipment has a cost of $37 000, an estimated life of five dollar bill years, and an estimated residual rate of $7 000.A full years wear and tear expense is to be recorded in 2013. The equipment was used 20 000 hours during 2013 and 24 000 hours during 2014. The number of expected hours over five years is 100 000. Clear Window is comparing the straight-line and reducing-balance derogation methods. Of these dickens methods, which method creates the larger expense and larger tax savings 2013? A. Straight-l ine wear and tear creates the larger expense, while reducing-balance wear and tear creates the larger tax savings b. Straight-line depreciation creates both the larger expense and the larger tax paving c.Reducing-balance depreciation creates both the larger expense and the larger tax d. Reducing-balance depreciation creates the larger expense, while straight-line depreciation creates the larger tax savings 5. Current invoice standard SAAB 116 indicates that the costs of intangible assets with an indefinite life, such as goodwill, should a. non be amortized, but should be reviewed annually for impairment b. Be describe on the dictation of retained earnings in the year in which acquired d. Be debited to an expense account entirely in the year in which acquired 6.The equipment had cost $45 000 and its accumulated depreciation sumed to $20 000 at the time of the sale. What are the net effects on the accounting equation of ex dislodge the equipment? A. Assets and righteousness increase $30 000 b. Assets decrease and equity increases $5 000 d. Assets and equity decrease $5 000 8. Wong purchased equipment at the beginning of July 2012 for $21 000. Wong decided to dishonor the equipment over a five year close using the straight-line method. Wong estimated the equipments residual value at $1 000. The estimated fair market value at the end of June 2013 was $20 000.Which of the following statements is correct concerning Wings financial statements at 30 June 2013? A. The carrying amount of the equipment is $16 000 b. The carrying amount of the equipment is $17 000 c. The core accumulated depreciation is $4 200 d. The equipment will be reported on the statement of financial position at it fair market value of $20 000 9. Chou zip purchased equipment at the beginning of July 2013 for $200 000. Chou Zero decided to depreciate the equipment over a five year period using the reducing-balance method. Chou Zero estimated the equipments residual value at 20 000.Which of the following statements is correct concerning Chou Zeros financial statements at 30 June 2014? A. The carrying amount of the equipment is $120 000 b. The carrying amount of the equipment is $80 000 c. The total accumulated depreciation is $90 000 d. Depreciation expense for 2013 is $72 000 10. The effect of recording depreciation for the year is a. A decrease in assets and a decrease in total broad income c. An increase in assets and an increase in total comprehensive income d. A decrease in total comprehensive income and no change in assets

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