The Method of Depreciation Was Changed from the Double-Declining-Balance Method

question 122

Multiple Choice

The method of depreciation was changed from the double-declining-balance method to the straight-line method in fiscal 2013. A machine was purchased on January 1, 2011, at a cost of $150,000. The machine has an estimated useful life of 10 years and a residual value of $9,000. What was booked as depreciation expense in fiscal 2011?

• A)$14,100
• B)$15,900
• C)$24,000
• D)$30,000

Differentiate between the gross and net methods of recording invoices.

Understand the journal entries associated with the purchase and payment cycle, including discounts and returns.

Recognize the implications of partial payments and the handling of changes in vouchered amounts.

Apply the periodic inventory system to purchase transactions.

---

Definitions:

Ambiguous Priorities

Situations where the importance or order of objectives, tasks, or goals is unclear or confusing, often leading to indecision or conflict.

Socio-Economic View

A perspective that considers both social and economic factors in the analysis of situations.

Maximize Profits

The process of increasing the financial gain a business receives from its operations to the highest possible level.

Corporate Boards

Groups of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.