A tickler file is a manual or computer file of documents that contain completed business data.
Indicate whether the statement is true or false
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Q. 2) In a period of rising inventory costs, the LIFO method would result in the highest net income.
Indicate whether the statement is true or false
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Q. 3) Able Company bought a machine on January 1, 2008 for 80,000. At the time the machine was purchased it was estimated to have an 8-year useful life and a 4,000 salvage value. Able uses straight-line depreciation.
During 2014, before the adjusting entry for depreciation was made, Able revised the estimated useful life of the machine to a total of ten years, with an estimated salvage value of 0. How much depreciation expense should the company report for the year ended December 31, 2014?
A) 5,000
B) 5,750
C) 4,400
D) 9,500
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Q. 4) If the terms of an invoice dated April 10 are 3/10, n/30, the invoice must be paid on or before April 20 in order to be entitled to a discount.
a. True
b. False
Indicate whether the statement is true or false
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Q. 5) Which financial statement shows Bad debts expense?
A) Income statement
B) Balance sheet
C) Statement of cash flows
D) both the Income statement and the Balance sheet
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Q. 6) A disadvantage of factoring is that the company selling its receivables immediately receives cash.
a. True
b. False
Indicate whether the statement is true or false
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