Accepted Answer

6. Moped Inc. purchased machinery at a cost of $22,000 on Jan 1st, 2004. The expected useful life is 10 years and the asset is expected to have salvage value of $2,000. Moped depreciates its assets via the double-declining balance method.
What is the firm's depreciation expense for year ended Dec 31,2004?
a. $2,000 b. $4,400 c. $6,000 d. $8,800 e. $10,000

7.Under most circumstances, in order to recognize revenue:
a. cash must have been received
b. the entity must expect to receive cash in the future
c. the entity must have paid for all expenses incurred in generating the revenue
d. the revenue must be realized or realizable and earned

8. The concept of matching revenue and expense refers to the fact that:
a. expenses for a period equal the revenues for the period
b. all costs incurred in the process of earning revenue during a period are recorded as expense in that period
c. all cash disbursements during a period are subtracted from all cash receipts during the period

Expert:	RD
Pos. Feedback:	99.3 %
Accepts:
Answered:	12/8/2006

Certified Public Accountant (CPA)

MBA, CPA