Numbers 21 and 25

20 The depreciation method that does not use residual value in calculating the first year's depreciation expense is a. straight-line b. units-of-production c, declining-balance d. none of the above 21. The costs incurred for property, plant and equipment can be classified into four stages. Which item below is not one of these stages a. in-service stage b. preliminary stage c. preacquisition stage use stage 22. Expenditures that added to the utility of fixed assets for more than one accounting period are a. committed expenditures b. revenue expenditures c. current expenditures d. capital expenditures 23 A capital expenditure results in a debit to a. an expense account b. a capital account c. a liability account d. an asset account 24 Which of the following below is an example of a capital expenditure? a. cleaning the carpet in the front room b. tune-up for a company truck c. replacing an engine in a company car d. replacing all burned-ut light bulbs in the factory