Doorglam Paid $35,000 for Office Furniture

question 201

Multiple Choice

Doorglam paid $35,000 for office furniture.The furniture is depreciated using the straight-line method and has an estimated service life of 7 years and no residual value.After three years of use,the accumulated depreciation of the furniture will be:

• A)$15,000.
• B)$20,000.
• C)$30,000.
• D)$35,000.

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Definitions:

Basic Earnings Per Share (Eps)

A calculation that determines the amount of net income earned per share of common stock, excluding the effect of potentially dilutive securities.

Financial Statements

A comprehensive set of reports that provide insights into an entity's financial position, performance, and cash flows over a specific period.

Basic Accounting Equation

The fundamental formula in accounting that states that Assets = Liabilities + Equity.

Liabilities

Financial obligations or debts owed by a business to another entity, which are expected to be settled through the transfer of economic benefits like cash or goods.