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

question 5

Multiple Choice

A machine with a four-year estimated useful life and an estimated 15 percent salvage value was acquired on January 1,2010.On December 31,2012,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:

Aging Schedule

A method used in accounting to display the breakdown of receivables or payables by their due dates, helping businesses manage their cash flow.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used but not yet paid for.

Credit Report

A document that contains a detailed history of an individual's or company's credit activities and current credit situation.

Risk Assessment

The identification, evaluation, and estimation of the levels of risks involved in a situation, followed by the coordination of resources to minimize, monitor, and control the probability or impact of unfortunate events.