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1. Angstrom Corporation purchased a truck at a cost of $60,000. It has an estimated useful life of five years and estimated residual value of $5,000. At the beginning of year three, Angstrom's managers concluded that the total useful life would be four years, rather than five. There was no change in the estimated residual value, What is the amount of depreciation that Angstrom should record for year 3 under the straight-line method? A) $15,500 B) $ 8,250. C) $11,000. D) $16,500 E) $15,000 2. Which statement is incorrect regarding the financial statements? A) Current assets reported in the balance sheet are generally reported in order of their size. B) Distributions to owners (dividends) are reported in the income statement. C) Expenses on the income statement are reported as incred, not as paid. D) The statement of cash flows reports the sources and uses of cash during the accounting period. E) Both A and B are incorrect. 3. Ifan expenditure is treated as a capital expenditure, instead of as a revenue expenditure, which of the following statements is true? A) The current year's net income will be lower and future depreciation expense will be higher. B) The current year's net income will be higher and future depreciation expense will be lower, C) The current year's net income will be higher and future depreciation expense will be higher. D) The cuirent year's net income will be lower and future depreciation expense will be lower 4: Credit teirms of 2/10, n/30 indicate that a A) two percent discount for early payment is available if the inyoice is paid before the tenth day of the month following the inomth the sal. B) two percent discount for early payment is available within ten day of the invoice date. C), ten percent discount for carly payment is available if the invoice is paid within two days of the date of the invoice. D) two percent discount for early payment is available if the invoice is paid after the tenth day, but before the thirtieth day of the invoice date. E) None of the above is correct

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