Question $6($Mandatory$)(2$ points$)$

$$

Expenditures that add to the utility of fixed assets for more than one accounting period are

Question $6$ options:

a$)$

committed expenditures

b$)$

revenue expenditures

c$)$

utility expenditures

d$)$

capital expenditures

Question $7($Mandatory$)(2$ points$)$

$$

A fixed asset's estimated value at the time it is to be retired from service is called

Question $7$ options:

a$)$

book value

b$)$

residual value

c$)$

market value

d$)$

carrying value

Question $8($Mandatory$)(2$ points$)$

$$

All of the following are needed for the calculation of straight$-$line depreciation except

Question $8$ options:

a$)$

cost

b$)$

residual value

c$)$

estimated life

d$)$

units produced

Question $9($Mandatory$)(2$ points$)$

$$

The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the

Question $9$ options:

a$)$

units$-$of$-$production method

b$)$

double$-$declining$-$balance method

c$)$

straight$-$line method

d$)$

time$-$valuation method

Question $10($Mandatory$)(2$ points$)$

$$

A machine with a cost of $$120,000$ has an estimated residual value of $$15,000$ and an estimated life of five years or $15,000$ hours. It is to be depreciated by the units$-$of$-$activity method.$$What is the amount of depreciation for the second full year, during which the machine was used $5,000$ hours?

Question $10$ options:

a$)$

$$5,000$

b$)$

$$35,000$

c$)$

$$21,000$

d$)$

$$45,000$