Answer:
$27,400 and $59,600
Explanation:
The computation of the depreciation expense and the book value using the sum of-the-years'-digits method is shown below:
Depreciation expense is
= (Purchase cost - residual value) × useful life ÷ sum of years
= ($87,000 - $4,800) × 5 years ÷ (5 + 4 + 3 + 2 + 1)
= $27,400
And, the book value is
= Purchase cost - depreciation expense
= $87,000 - $27,400
= $59,600
Answer:
The correct answer is letter "D": are an information system that records, processes, and reports on transactions to provide financial and non-financial information for decision making and control.
Explanation:
An Accounting Information System or AIS is a way to track all of a company's accounting activities. An AIS provides easy access to the same information to different departments. An AIS collects, stores, retrieves and processes the data. The data can come from internal and external sources allowing managers to make decisions about the business operations.
Answer:
The correct answer is letter "B": direct.
Explanation:
Direct Costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. Examples of direct costs are direct labor and materials, manufacturing supplies or even commissions out of sales.
Answer:
The total liabilities amounts to $200,000
Explanation:
The total liabilities of Asmine Smith is computed as:
Total Liabilities = Owing on Condo + Owning a Car
where
Owning on Condo is $190,000
Owning a Car is $10,000
Putting the values above:
= $190,000 + $10,000
= $200,000
Note: Sum Insured under the Insurance Policy, is neither a liability nor assets. And Premium paid is an expense, will be treated as Current Assets.
