salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-linemethod will beA)$15,400.B)$13,800.C)$13,000.D)$11,400.10.The term "receivables" refers toA)amounts due from individuals or companies.B)merchandise to be collected from individuals or companies.C)cash to be paid to creditors.D)cash to be paid to debtors.11.Which of the following assets does
decline in service potential over the course of its useful life?A)Equipment.B)Furnishings.C)Land.D)Fixtures.12.The financial statements of the Phelps Manufacturing Company reports net sales of $400,000 and accountsreceivable of $80,000 and $40,000 at the beginning of the year and end of year, respectively. What is thereceivables turnover ratio for Phelps?A)6.7 timesB)10 timesC)5 timesD)8 times13.The financial statements of the Belfry Manufacturing Company reports net sales of $400,000 and accountsreceivable of $80,000 and $40,000 at the beginning of the year and end of year, respectively. What is theaverage collection period for accounts receivable in days?A)40 timesB)80 timesC)54.7 timesD)50 times14.On January 1, a machine with a useful life of four years and a residual value of $3,000 was purchased for$19,000. What is the depreciation expense for year 2 under straight-line depreciation?A)$2,000.B)$4,000.C)$8,000.D)$4,750.15.Young Company lends Dobson industries $30,000 on August 1, 2010, accepting a 9-month, 12% interestnote. If Young accrued interest at its December 31, 2010 year-end, what entry must it make to record thecollection of the note and interest at its maturity date?A)Cash 32,700Notes Receivable 30,000Interest Revenue 2,700B)Cash 32,700Notes Receivable 32,700C)Notes Receivable 30,000Interest Receivable 1,500Interest Revenue 1,200Cash 32,700D)Cash 32,700Notes Receivable 30,000Interest Receivable 1,500Interest Revenue 1,20016.Wesley Hospital installs a new parking lot. The paving cost $30,000 and the lights to illuminate the newparking area cost $12,000. Which of the following statements is true with respect to these additions?A)$30,000 should be debited to the Land account.B)$12,000 should be debited to Land Improvements.