Which of the following life spans would be used for automobiles if the MACRS method of depreciation is employed?

The matching of costs with the benefits derived from the use of an asset is ____________.

Which of the following costs is normally expensed when incurred, even though it has future benefits?

On its December 31 Balance Sheet in Year 1, XYZ Company reports Accounts Receivable of $60,000 and an Allowance for Uncollectible Accounts of $6,000. During Year 2, credit sales total $1,800,000, collections on account total $1,680,000, and write-offs total $9,600. After aging its Accounts Receivable, XYZ Company estimates that 10 percent of its Accounts Receivable at December 31 of Year 2 will be uncollectible. During year 2, a customer's account for $2,400 is written off as uncollectible. What effect will the write-off have on the company's Income Statement and Balance Sheet?

XYZ Company acquires a machine for $20,000 in 2000 and depreciates it on the straight line basis, no salvage value, for two years based on an estimated ten-year life. In 2002 it was determined that the remaining life was only four years instead of eight. According to generally accepted accounting principles, what amount of depreciation should be recorded for 2002?

Which of the accounts below would NOT be treated as a reduction in sales revenue on the income statement?

Which of the following groups assets into one of seven classes for tax depreciation?

If a reasonable estimate of the amount of cash to be received can be made, when should revenue be recognized?

XYZ Company purchases a machine with a cost of $20,000, a salvage value of $2,000, and life of five years. If the company uses the sum-of-the-years digits method, what would the depreciation charge be for the first year?

Which of the following accounts is debited if depreciation is a production cost?

In the indirect method, which of the following is included in the cash flow from investing activities?