Clear Window Cleaners

question 70

Multiple Choice

Clear Window Cleaners
Clear Window Cleaners purchased new cleaning equipment at the beginning of 2011. The equipment has a cost of $53,000, an estimated life of 5 years, and an estimated residual value of $3,000. A full year's depreciation expense is to be recorded in 2011. The equipment was used 20,000 hours during 2011 and 24,000 hours during 2012. The number of expected hours over five years is 125,000.
-
Refer to the information provided for Clear Window Cleaners. Clear Window Cleaners wants to use the depreciation method that will result in the highest net income for 2011. Which method should be used?

• A) Straight-line
• B) Units-of-activity
• C) Double-declining-balance
• D) All methods create the same income in 2011.

Understand various retail merchandise strategies and their applications.

Identify the impact of retail store environment on consumer behavior.

Recognize different types of shopping centers and their characteristics.

Comprehend the importance and applications of slotting allowances in retail.

---

Definitions:

Profit and Loss Ratio

A financial metric that measures a company's profitability by comparing its profits and losses over a specific period.

Other Assets

Assets that do not fit into the standard categories of current or long-term assets, often including long-term investments, patents, or deposits.

Working Paper

Documentation created by accountants during an audit or financial analysis, containing the details and evidence supporting their conclusions.

Capital Account Balances

Represent the net assets owned by shareholders or partners in an entity, reflecting investments, profits, and losses.