Author: Anonymous

Short-term notes payable:

A leasehold refers to the rights the lessor grants to the lessee under the terms of the lease.

A company discarded a computer system originally purchased for $18,000. The accumulated depreciation was $17,200. The company should recognize a(an):

All of the following statements regarding FICA taxes are true except:

All of the following are true of known liabilities except:

Carson Company faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. The journal entry to recognize the potential loss is:

Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 4 years with a $5,000 salvage value. Depreciation expense in year 4 is:

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines’ first year depreciation under the straight-line method.

Mortgage bonds are backed only by the good faith and credit of the issuing company.

A plant asset’s useful life is the length of time it is productively used in a company’s operations.