2 points

QUESTION 28

Which of these methods allocates more depreciation near the start of an asset's life and less at the end of its useful life (depreciation is highest in the first year)?

Straight-line method

Units-of-production method

Double-declining-balance method

All of these methods

2 points

QUESTION 29

Which of these methods allocates a varying amount of depreciation to each year, based on the asset's usage?

Straight-line method

Units-of-production method

Double-declining-balance method

All of these methods

2 points

QUESTION 30

A company sells a vehicle for $5,000. As of the date of the sale, there is a $17,000 balance in the Vehicle account, and there is a $14,000 balance in the Accumulated Depreciation account. What was the gain or loss on the disposal of the vehicle?

$5,000 gain

$2,000 gain

$2,000 loss

$12,000 loss

5 points (Extra Credit)

QUESTION 31

Michael's Muffins has a fiscal period ending on December 31. On January 1, 2020, the company purchased equipment for $22,000. It is estimated that the equipment will remain useful for 5 years, or for 50,000 machine hours. After its useful life, it is expected that the equipment will still have a value of $2,000. In 2020, the equipment was used for 12,000 machine hours. Calculate depreciation expense for 2020 using the straight-line method.

$4,800

$4,400

$4,000

None of the above

5 points

QUESTION 32

Michael's Muffins has a fiscal period ending on December 31. On January 1, 2020, the company purchased equipment for $22,000. It is estimated that the equipment will remain useful for 5 years, or for 50,000 machine hours. After its useful life, it is expected that the equipment will still have a value of $2,000. In 2020, the equipment was used for 12,000 machine hours. Calculate depreciation expense for 2020 using the double-declining-balance method.

$8,800

$8,000

$4,400

None of the above

5 points

QUESTION 33

Michael's Muffins has a fiscal period ending on December 31. On January 1, 2020, the company purchased equipment for $22,000. It is estimated that the equipment will remain useful for 5 years, or for 50,000 machine hours. After its useful life, it is expected that the equipment will still have a value of $2,000. In 2020, the equipment was used for 12,000 machine hours. Calculate depreciation expense for 2020 using the unit-of-production method.

$5,280

$4,800

$4,000

None of the above

5 points

QUESTION 34

What is the journal entry to record depreciation on a piece of equipment for a fiscal period?

DEBIT Equipment

CREDIT Depreciation Expense

DEBIT Accumulated Depreciation

CREDIT Depreciation Expense

DEBIT Depreciation Expense

CREDIT Equipment

DEBIT Depreciation Expense

CREDIT Accumulated Depreciation

5 points

QUESTION 35

Which of the following is NOT a required employee withholding deduction?

Federal income tax

Health insurance premiums

Social Security (FICA) tax

All of these are required deductions

2 points

QUESTION 36

The company's taxable cash sales for May total $1,000. The company collects an additional 8% sales tax. Which of these will be included in the journal entry to record the collection of the sales revenue and tax?

DEBIT Cash for $1,000

DEBIT Sales Tax Payable for $80

CREDIT Sales Tax Payable for $80

All of these will be included

2 points

QUESTION 37

Paul works for Chick-fil-A. He earns wages of $12 per hour for straight time, and time and a half for overtime. Paul worked 30 hours this week, and he had $60 withheld from his paycheck for income taxes. What is Paul's gross pay? What is Paul's net pay?

Gross Pay = $360

Net Pay = $300

Gross Pay = $300

Net Pay = $360

Gross Pay = $360

Net Pay = $60

Gross Pay = $60

Net Pay = $360

2 points

QUESTION 38

Which of the following is an employer payroll tax, but NOT an employee withholding deduction?

Federal unemployment tax

Employee federal income tax

FICA - OASDI tax

FICA - Medicare tax

2 points

QUESTION 39

Which of the following is an example of a contingent liability?

An account payable that is due in 30 days

A mortgage that the company owes on its office building

Unearned revenue, when the company has received cash but not provided services yet

A product warranty, where the company might need to pay its customers for a faulty product