Kostner Financial Services Inc

question 41

Multiple Choice

Kostner Financial Services Inc.purchased computers that are to be used in its consultancy services.As per the matching principle,the related account that should appear on the balance sheet as of December 31,2014 is ________.

• A)Depreciation Expense
• B)Service Revenue
• C)Accumulated Depreciation
• D)Equipment Expense

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Definitions:

Equity Method

An accounting technique used to record an investor's proportional share of an associate company's net income or loss on its financial statements.

Purchase Price

The total cost that is paid to acquire an asset or service, often including additional fees and taxes beyond the sticker price.

Equity Method

An accounting technique used to record investments where the investor has significant influence but does not control the investee.

Net Income

The remaining earnings of a company after subtracting total expenses and taxes from its gross revenue.