Which of the Following Is an Analytical Procedure to Determine

question 1

Multiple Choice

Which of the following is an analytical procedure to determine if there is idle equipment or equipment that was disposed of but not written off?

• A)Compare depreciation expense divided by gross equipment cost with previous years.
• B)Compare gross manufacturing cost divided by some measure of production with previous years.
• C)Compare accumulated depreciation divided by gross equipment cost with previous years.
• D)Compare annual repairs and maintenance accounts with previous years.

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Definitions:

Quarterly

Pertaining to or occurring every three months.

Gross Earnings

The total income earned by an individual or organization before any deductions or taxes are subtracted.

Total Deductions

The sum of all amounts subtracted from an individual's gross income for taxes, benefits, and other expenses.

Net Earnings

The amount of income left after deducting taxes, benefits, and other expenses from gross earnings; often referred to as take-home pay.