1. Double declining balance depreciation calculates depreciation expense by multiplying the cost less residual value by a depreciation rate. True or False?

2. The choice of inventory costing method (e.g. FIFO, LIFO, average cost) does not depend on the actual physical flow of the product. True or False?

3. What is the correct journal entry to record the cash sale of goods under a perpetual inventory system?

a. Debit cash, credit sales revenue

b. Debit cost of goods sold, credit cash

c. Debit cash, credit inventory

d. Debit cost of goods sold, credit inventory

e. Debit cash, credit sales revenue, debit cost of goods sold, credit cash

f. Debit cash, credit sales revenue, debit cost of goods sold, credit inventory

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1 False Explanation In calculating the Double Declining B... View the full answer