Answer
The answer and procedures of the exercise are attached in the following images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 3 sheets with the formulas indications.
Answer:
$4,900
Explanation:
Cost of refrigerator = $64,000
Estimated residual value = $5,200
Useful life = 12 years
Using the straight line method,
Annual depreciation = ($64,000 - $5,200)/12
= $58,800/12
= $4,900
The difference between the cost and estimated residual value of the asset is the depreciation base of the asset over its useful life.
A) it is more accurate than accrual accounting.
Answer:
True
Explanation:
The reason why every business exists is to make a profit. Hopefully businesses will be able to make a profit by selling products or services that satisfy the needs of their customers. The problem with higher profits is that they are always associated with higher risks, and business owners and investors are risk averse.
Business owners and managers will continually search for ways to increase their profits while keeping the risks as low as possible. This includes choosing organizational layouts and forms that might help them increase their profits while reducing risks or at least keeping them under a certain level.
True.Inventory management means the right stock, at the right levels, in the right place, at the right time, and at the right cost as well as price.