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const2013 [10]
3 years ago
9

Which of the following estimates are required when calculating depreciation expense? 1. Depreciation rate 2. Useful life 3. Expe

cted maintenance costs 4. Salvage value
Business
1 answer:
boyakko [2]3 years ago
8 0

Answer:

These are required to calculate a depreciation expense on an asset:

1. Depreciation rate - the speed at which an asset becomes obsolete. Some assets depreciate faster than others, for example cars lose value more rapidly than houses.

2. Useful life - is the amount of time that the asset is expected to provide economic benefits for the firm. In the case of a computer, for example, average useful life is around 3 to 5 years depending on the company.

4. Salvage value - this is the residual value that the asset will have once its useful life has run out. A company needs this value to calculate the depreciable amount (which equals initial value - salvage value).

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The balance sheet identifies the productive resources (assets) that a firm uses to generate income, as well as the sources of fu
docker41 [41]

Answer:

A) True

Explanation:

The Balance Sheet is a snapshot of the financial situation of a company at the end of the accountable period. It shows which productive resources (assets) the company has for the development of its activities and how they are financed. Assets can be financed by external (Obligation with creditors – Liabilities) or internal sources (Issuing equity shares - Shareholders' equity). As every Asset must be financed either or both with Liabilities or Shareholders' equity, in the Balance Sheet, the accountable equation is represented.

5 0
3 years ago
Suppose Latasha comes into a large sum of money and decides to lend it out to earn interest on it. She realizes, however, that e
qwelly [4]

Answer:

moral hazard

Explanation:

Banks reduce the risk of moral hazard when they monitor and supervise how their clients are using the loans and credits made to them.

Some types of credits do not require any type of monitoring or control, e.g. a credit card which a client can use basically however he/she wants to. But other types of credit that are taken for purchasing assets, e.g. a mortgage, must be used by the bank's client to specifically carryout the intended activity.

In economics, moral hazard refers to the tendency that an economic party can engage in unusually risky activities because the capital (money) that they are investing is not theirs and the negative effects of a potential loss will be suffered most by other parties.

5 0
3 years ago
A candidate may apply to multiple jobs at the company Universal Containers by submitting a single application per job posting. O
adoni [48]

Answer:

Create a master-detail relationship in the Application Custom object to the Job Postings custom object.

Explanation: Job Posting is a channel through which the human resource management of an organization posts all its available vacancies internally in the organization to give an opportunity for its existing employees who wish to change their fields and work in different departments.

7 0
3 years ago
Why is interest typically paid on a loan? A. to compensate the borrower for borrowing from a specific lender B. to ensure that p
Svet_ta [14]

Answer:

The correct answer is option D.

Explanation:

An interest rate is an amount charged by a lender on the use of assets. It is expressed as a percentage of the principal. The interest rate is the return on lending for a lender and the cost of borrowing for the borrower.  

Interest is typically paid on a loan to compensate for the opportunity cost of lending money. A lender could invest the money instead of lending and get a higher return from it.  

To compensate for not using the money for an alternative purpose or for temporarily making do without the money that was lent, the borrower pays a certain percentage of principal to the lender.

4 0
3 years ago
Consider the following year-end information for a company: Cost of goods sold $ 420,000 Sales revenue 800,000 Non Operating expe
Bad White [126]

Answer:

$210,000.

Explanation:

Given:

Cost of goods sold = $420,000

Sales revenue = $800,000

Operating expenses = $170,000

Question asked:

What amount will the company report for operating income ?

Solution:

As we know, Operating Income = Gross Profit- Operating Expenses

First of all we will find gross profit,

Gross Profit = Net Sales – Cost of goods sold

                    = $800,000 -  $420,000

                    = $380,000

Now, Operating Income = Gross Profit- Operating Expenses

                                        = $380,000 -  $170,000

                                        = $210,000

Therefore, consider the following year-end information for a company, its Operating Income is  $210,000.

4 0
3 years ago
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