Which One of These Statements Related to MACRS Depreciation Is

question 4

Multiple Choice

Which one of these statements related to MACRS depreciation is correct?

• A)The MACRS percentages in the IRS tables are applied annually to the then current book value of an asset.
• B)The MACRS system of depreciation was eliminated by the IRS in 2012.
• C)An asset will be depreciated faster using MACRS rather than the straight-line method.
• D)An asset classified as 3-year MACRS property will be fully depreciated at the end of Year 3.
• E)All newly acquired property is considered to be placed in service at the start of the year for MACRS purposes.

Evaluate and interpret the significance of medical conditions affecting females of childbearing age.

Understand how to compute the average collection period for accounts receivable.

Recognize and record transactions involving sales on account, and understand the impact on financial statements.

Identify the correct treatment of dishonored notes receivable.

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Definitions:

Three Inventory Accounts

Refers to the three main types of inventory accounts on the balance sheet: raw materials, work-in-progress, and finished goods.

Direct Materials

Raw materials directly used in the manufacturing of a product, directly traceable to the finished product.

Office Supplies

Items like pens, paper, calculators, and computers that are used on a daily basis within an office setting.

Permanent/Temporary

Refers to accounts in accounting: permanent accounts are balance sheet accounts that carry over into the next accounting period, while temporary accounts are income statement accounts closed at the end of the accounting period.