Slim CoIs Ordering a New Computer for Its Corporate Office

question 31

Multiple Choice

Slim Co.is ordering a new computer for its corporate office.Which of the following events would trigger the recognition of the computer and related liability on Slim's books?

• A)The company generates a purchase order.
• B)The purchasing department sends a purchase order to the supplier.
• C)The company receives the computer.
• D)The company receives the bill from the supplier.

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Definitions:

Depreciable Cost

The total amount of an asset's cost that can be depreciated over its useful life, excluding salvage value.

Double-declining-balance

A method of accelerated depreciation that doubles the normal depreciation rate.

Depreciation Expense

The allocated cost of an asset over its useful life, used to account for declines in value due to use and wear and tear.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life, reflecting what the asset can be sold for once it is no longer needed.