17. Generally accepted accounting principles a. are accounting rules formulated

Question

17. Generally accepted accounting principles a. are accounting rules formulated by the are accounting rules that are recognized as Internal Revenue Service are sound in theory but rarely used in real life b. a general guide for financial reporting have eliminated all errors in accounting d. 18. Equipment with a cost of $160,000, purchased on May 1, has an estimated residual (salvage) value of s10.0 and an estimated life of 4 years. It is to be depreciated by the straight-line method. What is the amount of depreciation for the year ended December 31? a. $37,500 b. $25,000 c. $40,000 d. $26,667 The Allowance For Doubtful Accounts ledger account balance represents the a. b. 9. Amount of Bad Debt Expense recorded for the current year amount of the total Accounts Receivable balance that are estimated to be uncollectible amount of Accounts Receivable that arose from the current year that are estimated to be uncollectible net accounts receivable balance which appears on the balance sheet c. d. ). Which of the following statements about the statement of cash flows is true? a. It shows important line items as net income and gross profit b. c. d It shows financing activities including interest expense payments It shows investing activities including the cash received for the sale of equipment It shows four types of cash activity categories I halance of the Accumulated Depreciation account?

Explanation / Answer

Ans: a.$37500

Explanation:

Depreciation amount = [(Cost - sal. val.) ÷ 4 yrs]

($160000 - $10000) /4 =$37500

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