Question: All of the following are needed to compute straight-line depreciation except _____.
Answer Options:
a. cost
b. units produced
c. residual value
d. estimated life
Answer: B. units produced 38
Question: Which depreciation method does not use residual value when computing first-year depreciation?
Answer Options:
a. units-of-activity
b. sum-of-the-years-digits
c. double-declining-balance
d. straight-line
Answer: C. double-declining-balance 39
Question: Accumulated Depreciation _____.
Answer Options:
a. is a contra asset account
b. is the same as Depreciation Expense
c. records cost expiration of intangible assets
d. records cost expiration of natural resources
Answer: A. is a contra asset account 40
Question: Expected useful life is _____.
Answer Options:
a. computed when the asset is sold
b. estimated when the asset is placed in service
c. determined again each year
d. irrelevant to depreciation
Answer: B. estimated when the asset is placed in service 41
Question: What is the formula for depreciable cost?
Answer Options:
a. Initial Cost − Accumulated Depreciation
b. Initial Cost + Residual Value
c. Initial Cost − Residual Value
d. Depreciable Cost = Initial Cost
Answer: C. Initial Cost − Residual Value 42
Question: The accumulated depletion account is _____.
Answer Options:
a. an expense account
b. reported as another expense on the income statement
c. a contra asset account
d. an intangible asset account
Answer: C. a contra asset account 43
Question: Which intangible asset is amortized over its useful life?
Answer Options:
a. trademarks
b. patents
c. goodwill
d. All of these choices
Answer: B. patents 44
Question: The numerator in the current-ratio formula is _____.
Answer Options:
a. Current Assets
b. Intangible Assets
c. Current Liabilities
d. None of these choices are correct
Answer: A. Current Assets 45
Question: Which tax would be deducted when determining an employee’s net pay?
Answer Options:
a. SUTA taxes
b. FUTA taxes
c. FICA taxes
d. All of these choices
Answer: C. FICA taxes 46
Question: Inputs into a computerized payroll system can include all of the following except _____.
Answer Options:
a. variables
b. Social Security numbers
c. constants
d. payroll checks
Answer: D. payroll checks 47
Question: Employees are not subject to which tax?
Answer Options:
a. Medicare tax
b. Social Security tax
c. Federal withholding tax
d. State unemployment tax
Answer: D. State unemployment tax 48
Question: If a product is repaired under warranty, the seller records an entry that includes a _____.
Answer Options:
a. debit to Product Warranty Payable
b. debit to Cash
c. credit to Product Warranty Payable
d. debit to Supplies
Answer: A. debit to Product Warranty Payable 49