For the Past Several Years,Bill Reynolds Has Retained Accountant Chelsea

question 5

Multiple Choice

For the past several years,Bill Reynolds has retained accountant Chelsea Jones for help in preparing his personal income tax forms.Bill's boss recommended Chelsea because she had done a good job setting-up the company's new accounting system.Bill is very satisfied with Chelsea's work and feels that the fees she charges are quite reasonable.Chelsea would be classified as an) :

• A)Independent auditor.
• B)Private accountant.
• C)Public accountant.
• D)Accounting broker.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life, providing a consistent annual depreciation expense.

Residual Value

The anticipated salvage value an asset will have after its period of use has ended.

Depreciation Expense

Spreading out the expense of a solid asset over the period it's expected to be used.

Units-Of-Production Method

An accounting method of depreciation that allocates cost based on the actual usage or production levels of the asset.