CM 2113 CHAO WANG TEST 1 NEWEST
2025/2026 QUESTIONS and CORRECT
ANSWERS ALREADY GRADED A+
Which one of the following statements is not true? - CORRECT ANSWER-
Interest paid to finance the cost of the equipment is an operating cost.
A grader has an initial cost of $220,000 and an estimated life of 20 years. The
salvage value after 20 years is estimated to be $25,000. What is the annual
depreciation amount if the straight line method of depreciation accounting is
used? - CORRECT ANSWER-$9,750
A grader has an initial cost of $220,000 and an estimated useful life of 10 years.
The salvage value after 10 years of use is estimated to be $25,000. What is the
annual depreciation amount in the fourth year if the sum-of-the-years method of
depreciation accounting is used? - CORRECT ANSWER-$24,818.18
A grader has an initial cost of $220,000 and an estimated useful life of 10 years.
The salvage value after 10 years of use is estimated to be $25,000. What is the
, book value at the end of the second year if the double declining-balance method
of depreciation accounting is used? - CORRECT ANSWER-$140,800
A grader has an initial cost of @220,000 and an estimated useful life of 10 years.
The salvage value after 10 years of use is estimated to be $25,000. What is the
book value at the end of the eleventh year if the MACRS method of depreciation
accounting is used? - CORRECT ANSWER-$0
The difference between accounting and engineering economy is that accounting
evaluates and predicts future events, and engineering economy evaluates past
performance. TRUE/FALSE - CORRECT ANSWER-False
Payments that differ in amount may be equal if made at different points in time.
TRUE/FALSE - CORRECT ANSWER-True
(P/F, i, N) stands for finding future value given a present value at interest rate i for
N years. TRUE/FALSE - CORRECT ANSWER-False
Uniform Series of Payments is a series of payments or receipts that occurs at the
beginning of each period for N periods. TRUE/FALSE - CORRECT ANSWER-False
2025/2026 QUESTIONS and CORRECT
ANSWERS ALREADY GRADED A+
Which one of the following statements is not true? - CORRECT ANSWER-
Interest paid to finance the cost of the equipment is an operating cost.
A grader has an initial cost of $220,000 and an estimated life of 20 years. The
salvage value after 20 years is estimated to be $25,000. What is the annual
depreciation amount if the straight line method of depreciation accounting is
used? - CORRECT ANSWER-$9,750
A grader has an initial cost of $220,000 and an estimated useful life of 10 years.
The salvage value after 10 years of use is estimated to be $25,000. What is the
annual depreciation amount in the fourth year if the sum-of-the-years method of
depreciation accounting is used? - CORRECT ANSWER-$24,818.18
A grader has an initial cost of $220,000 and an estimated useful life of 10 years.
The salvage value after 10 years of use is estimated to be $25,000. What is the
, book value at the end of the second year if the double declining-balance method
of depreciation accounting is used? - CORRECT ANSWER-$140,800
A grader has an initial cost of @220,000 and an estimated useful life of 10 years.
The salvage value after 10 years of use is estimated to be $25,000. What is the
book value at the end of the eleventh year if the MACRS method of depreciation
accounting is used? - CORRECT ANSWER-$0
The difference between accounting and engineering economy is that accounting
evaluates and predicts future events, and engineering economy evaluates past
performance. TRUE/FALSE - CORRECT ANSWER-False
Payments that differ in amount may be equal if made at different points in time.
TRUE/FALSE - CORRECT ANSWER-True
(P/F, i, N) stands for finding future value given a present value at interest rate i for
N years. TRUE/FALSE - CORRECT ANSWER-False
Uniform Series of Payments is a series of payments or receipts that occurs at the
beginning of each period for N periods. TRUE/FALSE - CORRECT ANSWER-False
