Assuming the firm uses straight line depreciation, the average age and the average depreciable life of Bao’s fixed assets are closest to:
A.7 years for average age and 20 years for average depreciable life.
B.6 years for average age and 14 years for average depreciable life.
C.6 years for average age and 20 years for average depreciable life.
第1题
A company that prepares its financial statements in accordance with IFRS standards is in the process of developing a more efficient production process for one of its primary products.The most appropriate accounting treatment for the costs incurred in the project is to:
A.expense all cost as incurred.
B.capitalize costs directly related to the development.
C.expense costs until technical feasibility has been established.
第2题
On January 1, 2009, Bao limited bought a piece of manufacturing equipment for $250,000.At that time they estimated its useful life to be 10 years and its salvage value to be $10,000.During 2011, it became apparent that the equipment was wearing our more quickly than they had originally estimated.It now appeared that its useful life would only be 6 years in total.If Bao Limited uses the straight-line method for depreciation and has a policy of only taking one-half year’s depreciation in the year of acquisition, the depreciation expense on this piece of equipment for 2011 will be closest to:
A.$48,000.
B.$51,000.
C.$53,125.
第3题
The capitalization of interest (versus expensing) will have which of the following effects on a company’s financial ratios?
A.Lower interest coverage ratio.
B.Lower debt-to-equity ratio.
C.Higher asset turnover ratio.
第4题
For which type of long-lived asset is it most appropriate to test for impairment at least annually:
A.Property, plant and equipment.
B.Intangible assets with finite live.
C.Intangible assets with indefinite lives.
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