learning objective 8 6 questions 1 which of the following statements is considered i 4306504

learning objective 8 6 questions 1 which of the following statements is considered i 4306504

Learning Objective 8.6 Questions

1) Which of the following statements is considered incorrect?

A) Depreciation methods provide a systematic way to expense the cost of an asset, although this expense is not a negative cash flow.

B) Depreciation is an allocation of the original cost of an asset to the periods in which the asset is used.

C) Accumulated depreciation is the summation of the amount of the original cost of an asset already written off to expense in prior periods.

D) Accumulated depreciation is not a pile of cash waiting to be used.

E) Depreciation expense provides a means of setting aside cash for the replacement of an asset.

2) Useful Organizing began operations on January 1, 20X3, when the owners invested $80,000 cash in the company. Also on January 1, the company paid for a $30,000 machine. The machine has a useful life of 4 years and a $2,000 residual value. During its first year of operations, the company had sales of $96,000 and operating expenses except depreciation of $67,000. All sales were cash sales and all non-depreciation operating expenses were paid in cash. Useful Organizing has a 30% tax rate and pays all taxes on December 31. What is the cash balance before taxes on December 31, 20X3, if Useful Organizing uses straight-line depreciation?

A) $72,000

B) $76,900

C) $79,000

D) $81,100

E) $86,000

3) Useful Organizing began operations on January 1, 20X3, when the owners invested $80,000 cash in the company. Also on January 1, the company paid for a $30,000 machine. The machine has a useful life of 4 years and a $2,000 residual value. During its first year of operations, the company had sales of $96,000 and operating expenses except depreciation of $67,000. All sales were cash sales and all non-depreciation operating expenses were paid in cash. Useful Organizing has a 30% tax rate and pays all taxes on December 31. What is the cash balance before taxes on December 31, 20X3, if Useful Organizing uses double-declining- balance depreciation?

A) $64,000

B) $74,500

C) $79,000

D) $83,500

E) $94,000

4) Useful Organizing began operations on January 1, 20X3, when the owners invested $80,000 cash in the company. Also on January 1, the company paid for a $30,000 machine. The machine has a useful life of 4 years and a $2,000 residual value. During its first year of operations, the company had sales of $96,000 and operating expenses except depreciation of $67,000. All sales were cash sales and all non-depreciation operating expenses were paid in cash. Useful Organizing has a 30% tax rate and pays all taxes on December 31. What is the net cash provided by operating activities before taxes for 20X3, if Useful Organizing uses straight-line depreciation?

A) $(74,000)

B) $(67,000)

C) $ 22,000

D) $ 25,000

E) $ 29,000

5) Useful Organizing began operations on January 1, 20X3, when the owners invested $80,000 cash in the company. Also on January 1, the company paid for a $30,000 machine. The machine has a useful life of 4 years and a $2,000 residual value. During its first year of operations, the company had sales of $96,000 and operating expenses except depreciation of $67,000. All sales were cash sales and all non-depreciation operating expenses were paid in cash. Useful Organizing has a 30% tax rate and pays all taxes on December 31. What is the net cash provided by operating activities before taxes for 20X3, if Useful Organizing uses double-declining-balance depreciation?

A) $(81,000)

B) $(67,000)

C) $ 14,000

D) $ 25,000

E) $ 29,000

6) Useful Organizing began operations on January 1, 20X3, when the owners invested $80,000 cash in the company. Also on January 1, the company paid for a $30,000 machine. The machine has a useful life of 4 years and a $2,000 residual value. During its first year of operations, the company had sales of $96,000 and operating expenses except depreciation of $67,000. All sales were cash sales and all non-depreciation operating expenses were paid in cash. Useful Organizing has a 30% tax rate and pays all taxes on December 31. What is the cash balance after taxes on December 31, 20X3, if Useful Organizing uses straight-line depreciation?

A) $55,300

B) $72,400

C) $72,550

D) $94,050

E) $94,400

7) Useful Organizing began operations on January 1, 20X3, when the owners invested $80,000 cash in the company. Also on January 1, the company paid for a $30,000 machine. The machine has a useful life of 4 years and a $2,000 residual value. During its first year of operations, the company had sales of $96,000 and operating expenses except depreciation of $67,000. All sales were cash sales and all non-depreciation operating expenses were paid in cash. Useful Organizing has a 30% tax rate and pays all taxes on December 31. What is the cash balance after taxes on December 31, 20X3, if Useful Organizing uses double-declining-balance depreciation?

A) $59,800

B) $74,500

C) $74,800

D) $88,800

E) $89,500

8) Useful Organizing began operations on January 1, 20X3, when the owners invested $80,000 cash in the company. Also on January 1, the company paid for a $30,000 machine. The machine has a useful life of 4 years and a $2,000 residual value. During its first year of operations, the company had sales of $96,000 and operating expenses except depreciation of $67,000. All sales were cash sales and all non-depreciation operating expenses were paid in cash. Useful Organizing has a 30% tax rate and pays all taxes on December 31. What is the net cash provided by operating activities after taxes for 20X3, if Useful Organizing uses straight-line depreciation?

A) $ 6,600

B) $15,050

C) $15,400

D) $22,400

E) $22,550

9) Useful Organizing began operations on January 1, 20X3, when the owners invested $80,000 cash in the company. Also on January 1, the company paid for a $30,000 machine. The machine has a useful life of 4 years and a $2,000 residual value. During its first year of operations, the company had sales of $96,000 and operating expenses except depreciation of $67,000. All sales were cash sales and all non-depreciation operating expenses were paid in cash. Useful Organizing has a 30% tax rate and pays all taxes on December 31. What is the net cash provided by operating activities after taxes for 20X3, if Useful Organizing uses double-declining-balance depreciation?

A) $ 6,860

B) $ 9,800

C) $10,500

D) $24,500

E) $24,800

10) Depreciation expense generates cash.

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