Examlex

Solved

A Company Purchased a Computer on August 1, 2016

question 93

True/False

A company purchased a computer on August 1, 2016. Using straight-line depreciation, the company would report four (4)months depreciation on December 31, 2016.


Definitions:

Laptop Computers

Portable personal computers designed for mobile use, characterized by a screen and a keyboard.

Average Cost Method

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during a period.

Ending Inventory

The total value of all the inventory that a company has in stock at the end of an accounting period.

LIFO Cost Flow

A method of stock valuation where the latest items added to the inventory are the first ones to be sold.

Related Questions