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1.Failure to record amounts earned for services provided to customers but NOT yet paid results in which of the following?
a. Net income being overstated
b. No effect on total assets
c. Stockholders' equity being overstated
d. Total assets being understated.
2.Williams Corporation purchased a depreciable asset for $400,000 on January 1, 2010. The estimated salvage value is $40,000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. In 2013, Williams on charged its estimates to a total useful life of 5 years with a salvage value of $60,000. What is 2013 depreciation expense?
a)$40,000
b)$60,000
c)$110,000
d)$120,000.
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