1 Depreciation

question 80

Multiple Choice

1. depreciation. On January 1, 2013, Fall River's management revises the total estimated life to be 10 years, with estimated residual value of $2,000. The balance in Accumulated Depreciation on December 31, 2013, is:

• A)$16,358.
• B)$21,429.
• C)$10,000.
• D)$19,000.

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Definitions:

Prepaid Expenses

Costs paid in advance for goods or services to be received in the future.

Total Assets

The sum of all assets owned by a company, both current and non-current, used to calculate the company's financial health.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Sales Revenues

Income received from selling goods or services over a period of time.