Accounting for managerial decisions

Which of the following be related to the purchase of production equipment incurred by BBC go with during 2013 would be considered an set down (revenue expenditure)? B. Purchase harm of the equipment less the cash discount c. regenerate and maintenance costs during the equipments first category of service d. Transportation charges to deliver the equipment to BBC familiarity 4. Clear windowpane Cleaners purchased red-hot cleaning equipment at the parentage of 2013. The equipment has a cost of $37 000, an estimated life of quintuplet years, and an estimated residual value of $7 000.A profuse years derogation expense is to be enter in 2013. The equipment was used 20 000 hours during 2013 and 24 000 hours during 2014. The number of expected hours over cinque years is 100 000. Clear Window is comparing the straight-line and reducing-balance depreciation systems. Of these two methods, which method creates the larger expense and larger task nest egg 2013? A. Straight-line d epreciation creates the larger expense, succession reducing-balance depreciation creates the larger tax savings b. Straight-line depreciation creates both the larger expense and the larger tax paving c.Reducing-balance depreciation creates both the larger expense and the larger tax d. Reducing-balance depreciation creates the larger expense, date straight-line depreciation creates the larger tax savings 5. Current accounting standard SAAB 116 indicates that the costs of intangible assets with an indefinite life, such as goodwill, should a. Not be amortized, but should be reviewed annually for impairment b. Be inform on the statement of retained hire in the year in which acquired d. Be debited to an expense account entirely in the year in which acquired 6.The equipment had cost $45 000 and its accumulated depreciation nubed to $20 000 at the time of the sale. What are the net cause on the accounting equation of exchange the equipment? A. Assets and equity increase $30 000 b. A ssets drop and equity increases $5 000 d. Assets and equity descend $5 000 8. Wong purchased equipment at the beginning of July 2012 for $21 000. Wong clear-cut to depreciate the equipment over a atomic number 23 year period apply the straight-line method. Wong estimated the equipments residual value at $1 000. The estimated fair market value at the end of June 2013 was $20 000.Which of the following statements is mitigate concerning Wings financial statements at 30 June 2013? A. The carrying inwardness of the equipment is $16 000 b. The carrying amount of the equipment is $17 000 c. The heart and soul accumulated depreciation is $4 cc d. The equipment will be reported on the statement of financial position at it fair market value of $20 000 9. grub Zero purchased equipment at the beginning of July 2013 for $200 000. sugar Zero decided to depreciate the equipment over a five year period using the reducing-balance method. Chou Zero estimated the equipments residual value at 2 0 000.Which of the following statements is correct concerning Chou Zeros financial statements at 30 June 2014? A. The carrying amount of the equipment is $120 000 b. The carrying amount of the equipment is $80 000 c. The come up accumulated depreciation is $90 000 d. dispraise expense for 2013 is $72 000 10. The effect of arranging depreciation for the year is a. A pass in assets and a decrease in radical extensive income c. An increase in assets and an increase in total comprehensive income d. A decrease in total comprehensive income and no change in assets