Ursula Tax Planning Service Has the Following Plant Assets: Communications

question 144

Multiple Choice

Ursula Tax Planning Service has the following plant assets: Communications equipment: Cost, $6,720 with useful life of 8 years; Furniture: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $12,000 with useful life of 4 years. Assume the salvage value of all the assets is zero and the straight-line method is used. Ursula's monthly depreciation journal entry will include a:

• A)debit to Depreciation Expense of $5,340.
• B)credit to Depreciation Expense of $5,340.
• C)debit to Accumulated Depreciation of $445.
• D)credit to Accumulated Depreciation of $445.

Calculate sales generation efficiency from asset values and liabilities.

Understand the concept of net fixed assets and their impact on sales efficiency.

Calculate total equity from given financial ratios and assets.

Derive sales value from total asset turnover and given financial data.

---

Definitions:

New Slide

A fresh, blank slide added to a presentation in slide-based software like PowerPoint.

Undo

A command in many software applications that reverses the most recent action or command made by the user.

Increase Font Size

Increasing font size refers to making the text larger in a digital document or web page for better readability.

Remove Text

The action of deleting written content from a document.