A company used straight-line depreciation for an item of equipment that cost RM12,000, had a residual value
Question:
A company used straight-line depreciation for an item of equipment that cost RM12,000, had a residual value of RM2,000, and had a five-year useful life. After depreciating the asset for three complete years, the residual value was reduced to RM1,200 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:
| RM1,000. |
| RM1,800. |
| RM1,600. |
| RM1,467. |
Mutual agency implies that each partner in a partnership is a fully authorized agent of the partnership. Which of the following statements is correct regarding the authority of a partner to bind the partnership in dealings with third parties?
Gourmet Cookware makes all sales on credit with 60% of the payment being received in the month of sale, 30% in the month following sale and the remaining 10% in the subsequent month. Budgeted sales are as follows: January RM100,000, February RM140,000, March RM120,000. The budgeted balance of debtors at 31 March is:
| RM120,000. |
| RM48,000. |
| RM74,000. |
| RM62,000. |
| A partner may be able to legally bind the partnership to actions even if the other partners are unaware of his actions. |
| Only a partner with a majority interest in a partnership has the authority to represent the partnership to third parties. |
| The partner's authority may be effectively limited by a formal resolution of the other partners, even if third parties are not aware of that limitation. |
| The partner's authority must be derived from the partnership agreement. |
Financial and Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson