For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.

Management's statement of responsibility: Multiple Choice refers to the company's system of internal controls. emphasizes that t

Contact [7]

Answer:

A. to the company's system of internal controls.

Explanation:

The statement of responsibility is a statement that is usually in line with the laid down rules and the regulation of the governing body. It is a statement of the procedures that shows that the management is able to maintain a good and effective internal controls over financial reports. These are to show how reliable the informations are and to see that proper authorizations are given for transactions and that assets are safe.

6 0

3 years ago

Which of the following software maintenance steps erases gaps caused by deleting files from the hard drive? UPDATE SYSTEM SOFTWA

Lynna [10]

Defragging would be the correct answer

8 0

3 years ago

Read 2 more answers

Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?

VMariaS [17]

<span>The annuity payout option that allows the policyowner to choose a pre-determined number of benefit payments is known as an Annuity Certain. Which is a financial instrument that provides a stream of payments, for a predetermined number of years. If the annuitant dies before the payment term ends, an annuity certain will continue a stream of payments remitted to the annuitant's beneficiary or estate.</span>

6 0

3 years ago

True or false: economic models do not take the role of entrepreneurs into account because entrepreneurial discovery plays only a

andrey2020 [161]

The answer is false. The role of entrepreneurs is accounted by economic models. They are directly connected with the consumers and have firsthand information about the things that they would like. Entrepreneurs play a big role to ensure that businesses circulate.

4 0

4 years ago

Obj. 2Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of three year

xenn [34]

Answer and Explanation:

a. Straight line method

Annual depreciation = (Cost price - Scrap value) ÷ Useful life

= ($270,000 - $9,000) ÷ 3

= $261,000 ÷ 3

= $87,000

Year 1 Year 2 Year 3 Year 4

Depreciation $65,250 87,000 87,000 $21,750

Working note

Depreciation for year 1 = $87,000 × 9 ÷ 12

= $65,250

Depreciation for year 2 = $87,000 × 3 ÷ 12

= $21,750

b. Units-of-activity method

Depreciation per hour = (Cost - Scrap value) ÷ Number of operating hours

= ($270,000 - $9,000) ÷ 18,000

= $261,000 ÷ 18,000

= $14.5

Year 1 Year 2 Year 3 Year 4

Depreciation $108,750 $79,750 $58,000 $14,500

Working note

Depreciation for year 1 = 7,500 × $14.5

= $108,750

Depreciation for year 2 = 5,500 × $14.5

= $79,750

Depreciation for year 3 = 4,000 × $14.5

= $58,000

Depreciation for year 4 = 1,000 × 14.5

= $14,500

C. Double declining balance method

Under the double-declining balance method, depreciation on the decreased asset balance is paid at double straight line depreciation rate.

Straight line depreciation rate = Annual depreciation ÷ Depreciable base

= $87,000 ÷ $261,000

= 33.33%

So, double declining depreciation rate = 2 × 33.33%

= 66.67%

Year 1 Year 2 Year 3 Year 4

Depreciation $135,000 $90,000 $30,000 $6,000

Working Note

Depreciation for year 1 = $270,000 × 66.67% × 9 ÷ 12

= $135,000

Depreciation for year 2 = ($270,000 - $135,000) × 66.67%

= $90,000

Depreciation for year 3 = ($270,000 - $135,000 - $90,000) × 66.67%

= $30,000

Total depreciable assets = $135,000 + $90,000 + $30,000 + $6,000

= $261,000

6 0

3 years ago