Reference no: EM132888960

Problem 1: A machine with a four-year estimated useful life and an estimated 25% residual value was acquired at the beginning of the current year. The increase in accumulated depreciation for the second year using the double declining balance method would be

a. Original cost X 50% X 50%

b. Original cost X 85%X 50% X 50%

c. Original cost X 50%

d. Original cost X 85% X 50%

Problem 2: After initial recognition, an entity shall measure a note payable at

a. Either amortized cost or fair value through other comprehensive income

b. Either amortized cost or fair value through profit or loss

c. Fair value through profit or loss

d. Amortized cost

Problem 3: All of the following are revenue accounts, except

a. Income from services provided by an accounting firm

b. Accrual of interest by a lending institution

c. Income generated from sale of goods by a candy shop

d. Accrual of interest by a maker of a note