A Machine with a Four-Year Estimated Useful Life and an Estimated

question 16

Multiple Choice

A machine with a four-year estimated useful life and an estimated 15 percent salvage value was acquired on January 1,2012.On December 31,2014,the accumulated depreciation using the sum-of-year's digits method would be

• A)Original cost less salvage value)multiplied by 9/10
• B)Original cost multiplied by 9/10
• C)Original cost multiplied by 9/10 less total salvage value
• D)Original cost less salvage value)multiplied by 1/10

---

Definitions:

Purchases

Transactions involving the acquisition of goods or services for personal use, resale, or business operations.

Voucher Register

A record or log of vouchers that have been prepared, detailing the authorization of transactions and payments.

Liability

An obligation of the company arising from past transactions or events, the settlement of which may result in the transfer of assets, provision of services, or other yielding of economic benefits in the future.

Accounts Payable

Liabilities representing amounts the company owes to suppliers or creditors for goods and services received but not yet paid for.