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Which one of the following will increase the present value of a finite stream of even cash flows? Assume a positive rate of return.A) Moving every cash flow one time period further into the futureB) Decreasing the amount of each cash flowC) Increasing the Time 2 cash flow by $100 and lowering the Time 3 cash flow by $100D) Moving the Time 1 cash inflow to Time 2E) Increasing the discount rate

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On October 1, 2025, Wolfie Co. bought equipment for $12,000. Wolfie expects the equipment will last for three years and then be worthless. Which of the following is correct for the company's annual financial statements at December 31, 2026?A) Depreciation expense $4,000; accumulated depreciation $7,000B) Depreciation expense $5,000; accumulated depreciation $5,000C) Depreciation expense $4,000; accumulated depreciation $5,000D) Depreciation expense $5,000; accumulated depreciation $4,000

Anjou Inc. owes its only employee $600 at the end of its first month in business. Anjou will pay its employee in the next month. Which of the following is true?A) Because no payment was made in month 1, Anjou does not need to record any entries until month 2, when the payment is made.B) Even though the payment has not yet been made, Anjou must reduce its cash account and record a liability for the amount due.C) Anjou records the transaction in the first month as if the payment was made. The entry is to reduce cash and record salary expense on the Income Statement.D) Anjou records the salary expense on the Income Statement and salaries payable on the Balance Sheet

Which of the following is true?A) Depreciation expense on the Income Statement is never for more than one year.B) Depreciation expense always equals accumulated depreciation.C) Accumulated depreciation is a liability account on the company's Balance Sheet.D) Depreciation expense is the amount of cash paid for depreciation during the year.

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