In a Previous Period Banshee Ltd Wrote-Off Its 'Dynamic Mover

question 41

Multiple Choice

In a previous period Banshee Ltd wrote-off its 'dynamic mover' equipment,but new information has shown that it is probable that the future economic benefits exceed its cost of $40 000.What is the appropriate accounting entry?

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Definitions:

Accounts Payable

The amount of money owed by a business to its suppliers or creditors for goods and services bought on credit.

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Shares Outstanding

The total number of a company's shares that are currently held by all its shareholders, including share blocks held by institutional investors and restricted shares.