In 2013, Internal Auditors Discovered That Fay, Inc

question 59

Multiple Choice

In 2013, internal auditors discovered that Fay, Inc., had debited an expense account for the $700,000 cost of a machine purchased on January 1, 2010. 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:

Neale and Northcraft

Neale and Northcraft are researchers known for their contributions to the field of organizational behavior, particularly in the context of negotiations and decision-making.

Internal Locus of Control

The belief that one's actions and decisions directly affect the outcomes and events in their life, as opposed to external forces beyond their control.

Compromising Style

A conflict resolution approach where parties find a mutually acceptable solution that partially satisfies both sides, often involving concessions.

Assertiveness

The quality of being self-assured and confident without being aggressive, allowing for the expression of one's views and needs directly and respectfully.