<u>Answer</u>:
D) For MACRS-GDS an estimate of the salvage value is required.
This statement is not true about depreciation
<u>Explanation</u>:
The term Depreciation refers to the decrease in the value of an asset over time. It is not a part of cash flow and does not involve any cash. To calculate the depreciation of an asset, it must have a life of more than one year.
According to this system, the depreciation occurs one year higher than the classified period, for example, a 5-year property will depreciate in 6 years. The aspect which is not considered while calculating the depreciation under MACRS-GDS is the salvage value of the property because it depreciates to zero and the rates sum-up to 100%.
Therefore, alternative D is not true about depreciation in MACRS-GDS.
Answer:
A business or firm is an organization that uses resources to produce a product which it then sells.
Answer:
If I'm right it is risk prioritization
Explanation:
if I am correct about this
Answer:
a. HORIZONTAL METHOD
INCOME STATEMENT
date Income $ - Expenses $ = net income
1 Nov - - - - -
b. adjusting
31 each rent 5,300 - - 5,300
month
c. BALANCE SHEET AS AT 31 DEC
Assets = Equity + Liabilities
+ bank $84,800 - prepaid expense +$84,800
Explanation:
on 1 Nov there is no entry for the amount in the income statement because it is not yet earned only the balance sheet is affected + bank $31800 and + income received in advance ( liability) $31800
each month's rent = $31800/ 6month =$5300
18 months rent = 95400
unearned at december = 18 months - 2 months earned
= 95400- 10600
=$84,800
Answer:
D
Explanation:
Direct finance is when a company or individual borrows money directly from the financial market without the aid of a financial intermediary.
Examples include :
- issuing bonds
- issuing shares
Indirect finance is when a company or individual borrows money through a financial intermediary. for example, borrowing from a bank