A New Accountant Working for Metcalf Company Records $800 Depreciation

question 42

Multiple Choice

A new accountant working for Metcalf Company records $800 Depreciation Expense on store equipment as follows: The effect of this entry is to:

• A) adjust the accounts to their proper amounts on December 31.
• B) understate total assets on the balance sheet as of December 31.
• C) overstate the book value of the depreciable assets at December 31.
• D) understate the book value of the depreciable assets as of December 31.

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Definitions:

Interstate Highway

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The closing price of a stock on a stock exchange at the end of a trading session.

Mode

The most commonly occurring value in a set of data.

Coefficient Of Variation

A standardized measure of dispersion of a probability distribution or frequency distribution, calculated as the ratio of the standard deviation to the mean.