A Company Purchased a Computer on July 1, 2015 for $50,000

question 11

Multiple Choice

A company purchased a computer on July 1, 2015 for $50,000. Estimated useful life of the computer was 5 years and it has no residual value. Which of the following methods should be used to best match its expense against the revenue it produces?

• A)the units-of-production method
• B)the straight-line method
• C)the double-declining-balance method
• D)the first-in, first-out method

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Definitions:

Life on Earth

The collective existence of all organisms, both past and present, that inhabit our planet, adapting and evolving over billions of years.

Gravity

A fundamental force of nature that causes all things with mass or energy to be attracted to one another, keeping planets in orbit around stars and forming the structure of the universe.

One-Way Flow

A system or process in which resources or materials move in a single direction without recirculation or return to the starting point.

Limiting Factor

An environmental condition that restricts the growth, abundance, or distribution of an organism or a population within an ecosystem.