When You Ask Mrs

question 92

Multiple Choice

When you ask Mrs. Redding how she would like to pay the $48 she owes for today's services, she hands you a credit card. When you look at the card, you realize that the card expired two months ago. Which of the following would be your best response to Mrs. Redding?

• A) "I'm sorry, Mrs. Redding, but this card has expired. Do you have another card we might use?"
• B) "Mrs. Redding, I can't use this card because it expired two months ago."
• C) "Why are you trying to pay us with an expired credit card?"
• D) "Mrs. Redding, this card has expired; would you like me to bill you instead?"
• E) "If I put the charge through on this expired card, the credit card company will be furious."

Understand the concept of residual value in asset valuation.

Determine the factors involved in computing depreciation.

Assess and compare asset productivity through calculations like total asset turnover.

Know the modifications in estimates affecting the useful life or residual value of assets and their accounting treatment.

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Definitions:

Interest Rate

The amount charged on top of the principal by lenders to borrowers, usually expressed as an annual percentage of the loan.

Interest Rate

The interest rate is the percentage of the principal charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.

Years From Now

A temporal reference indicating a certain amount of time in the future from the current point.

Real Wages

Nominal wages corrected for inflation.