Devry ACCT305 week 3 quiz

| June 14, 2018

Question 1. 1. (TCO 4) Which depreciation method multiplies
a constant base by a declining fraction? (Points : 4)
declining balance

Sum-of-the-years’ digits
Composite or

Question 2. 2. (TCO 4) Amortization refers to the cost
allocation for (Points : 4)
a patent.
a building.
a silver mine.

Question 3. 3. (TCO 4) The factors that need to be
determined to compute depreciation are an asset’s (Points : 4)
cost, residual
value, and physical life.
replacement value, and service life.
fair value,
residual value, and economic life.
cost, residual
value, and service life.

Question 4. 4. (TCO 4) Cutter Enterprises purchased
equipment for $72,000 on January 1, 2011. The equipment is expected to have a
5-year life and a residual value of $6,000. Using the straight-line method, the
book value at December 31, 2011 would be (Points : 4)

Question 5. 5. (TCO 4) Accounting for a change in the
estimated service life of equipment (Points : 4)
is handled
retroactive restatement of the prior year’s financial statements.
requires a prior period adjustment.
is a
cumulative adjustment to income in the current year for the difference in
depreciation under the new versus old estimates.

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