Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

All of the following statements accurately describe the debt ratio except.

A company purchased new furniture at a cost of $14,000 on September 30. The furniture is estimated to have a useful life of 8 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?

Red House, Inc. purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. The book value of the machine at the end of year 2 is:

Conners, Inc. purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset’s book value on December 31, Year 2 will be:

On December 1, Goodman signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Elliot Company. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

Tuscon Rentals leases office space for $7,000 per month. On January 3, Tuscon incurs $65,000 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Tuscon has 5 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:

The monetary unit assumption: