A Company Purchased a Computer on July 1,2019 for $50,000

question 25

Multiple Choice

A company purchased a computer on July 1,2019 for $50,000.The estimated useful life of the computer was five 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:

Commercial Letter

A commercial letter is a document used in international trade that provides specific instructions or information regarding the shipment of goods.

Secure Form

A digital form that implements security measures to protect the data being transmitted from unauthorized access or alterations.

Importer's Bank

A financial institution that facilitates transactions, including payment, for a company importing goods from another country.

Small Scale Industry

A sector comprising of businesses that operate on a small scale, typically characterized by low investment, fewer employees, and less revenue compared to large-scale industries.