In 2016,internal Auditors Discovered That Fay,Inc

question 12

Multiple Choice

In 2016,internal auditors discovered that Fay,Inc. ,had debited an expense account for the $700,000 cost of a machine purchased on January 1,2013.The machine's useful life was expected to be five years with no residual value.Straight-line depreciation is used by Fay.The journal entry to correct the error will include a credit to accumulated depreciation of:

• A)$140,000.
• B)$280,000.
• C)$420,000.
• D)$700,000.

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Definitions:

Democracy

A political system characterized by citizen participation in the political process.

Anarchy

A state of society without government or law, where there is no centralized authority, often implying disorder due to the absence of government control.

Autocracy

A form of government where power is concentrated in the hands of a single individual or a small group, without significant input from citizens.

Monarchy

A form of government in which a single person, the monarch, rules until death or abdication, and the position is usually inherited.