A Business Acquires Equipment for $140,000 on January 1,2011

question 51

Essay

A business acquires equipment for $140,000 on January 1,2011.The equipment depreciation will be $20,000 each year for the seven years of the asset's expected life.The business records depreciation once a year on December 31.Which of the following is the adjusting entry required on December 31,2011?
A) A debit $140,000 to Equipment and a credit $140,000 to Cash.
B) A debit $140,000 to Depreciation expense and a credit $140,000 to Accumulated depreciation.
C) A debit $20,000 to Depreciation expense and a credit $20,000 to Accumulated depreciation.
D) A debit $20,000 to Depreciation expense and a credit $20,000 to Equipment.

• A) A debit $140,000 to Equipment and a credit $140,000 to Cash.
• B) A debit $140,000 to Depreciation expense and a credit $140,000 to Accumulated depreciation.
• C) A debit $20,000 to Depreciation expense and a credit $20,000 to Accumulated depreciation.
• D) A debit $20,000 to Depreciation expense and a credit $20,000 to Equipment.

Understand the impact of risk aversion on decision making.

Differentiate between various social decision schemes and their effects on group decisions.

Recognize the role and assumptions of intuition in the decision-making process.

Identify strategies to develop different cognitive abilities related to decision making.

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Definitions:

Guthrie

Refers to Edwin Ray Guthrie, a psychologist known for his "one trial learning" theory, emphasizing the importance of contiguity in learning.

Guthrie

Refers to Edwin Ray Guthrie, a psychologist known for his theory that learning is based on a stimulus-response association.

Learning Theory

A set of theories that describe how behaviors are acquired, processed, and retained through interaction with the environment.

Single Trial

A learning or experimental situation where an organism is exposed to a stimulus or condition only once, used to assess immediate and initial responses.