Which of the Following Transactions Does Not Affect the Total

question 34

Multiple Choice

Which of the following transactions does not affect the total assets of Dusty Knoll Inc.?

• A) The bills are received for last month's utilities
• B) Dividends are paid to stockholders
• C) Customers are billed for services provided on credit
• D) A new automobile is purchased on credit

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Definitions:

Salvage Value

An asset's predicted market price upon exhausting its useful life.

Depreciation Expense

A financial accounting method used to allocate the cost of a tangible asset over its useful life.

Double-Declining-Balance

An accelerated method of depreciation that doubles the rate at which an asset's book value declines compared to the straight-line method.

Salvage Value

The calculated resale worth of an asset at the close of its efficient lifespan.