What Is the BEST Strategy to Use When You Can't

question 7

Multiple Choice

What is the BEST strategy to use when you can't answer a multiple-choice question?

• A) Go with your first impulse and move on.
• B) Mark it and return to it at the end of the test.
• C) Mark out the wrong answers until only one answer is left standing.
• D) Don't ever change an answer once it is marked.

Understand and calculate the depreciation expense using different methods such as straight-line, double-declining-balance, and units-of-production.

Prepare adjusting journal entries for recording depreciation and asset disposals.

Understand the impact of changes in depreciation estimates and how to account for them.

Recognize and explain the accounting procedures for asset disposals including the calculation of gain or loss on disposals.

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Definitions:

Dividend Policy

A company’s strategy or guidelines set for allocating a portion of its earnings back to its shareholders in the form of dividends.

Automatic Reinvestment

A plan that allows investors to automatically reinvest dividends or capital gains back into the security that generated them.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Corporate Investor

An entity that invests its own funds in various financial instruments, often with the aim of owning a significant stake in another company.