QUESTION 8

1. On 31 December 2008 a new machine with a useful life of 6 years and an estimated residual value of zero was purchased by a business at a cost of $30,000. The amount of depreciation expense charged for the year ended 31st December 2010, using the reducing balance method at a rate of 30% per annum, is:

   		$6,300
   		$1,800
   		$9,000
   		$5,000

1 points

QUESTION 9

1. Which accounting principle requires the same depreciation method to be used over consecutive accounting periods?

   		consistency
   		conservatism
   		reliability
   		historical cost

QUESTION 20

1. Tom and Jerry formed a partnership trading as T & J Financial Services. In their partnership agreement it was not stated how they will split any profit or loss. At 30 June 2019 the Partners Equity is as follows: Tom: $144,000; Jerry: $176,000. At 31 December T & J made a profit of $18,000. How would this profit be shared between Tom and Jerry?

   		Tom: $9,000; Jerry: $9,000
   		Tom: $18,000; Jerry: $0
   		Tom: $9,900; Jerry: $8,100
   		Tom: $8,100; Jerry: $9,900
   		Tom: $0; Jerry: $18,000