Question

1. Lois Ltd. purchased equipment for $30,000 on January 1, 2019, and will use the diminishing-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $3,000 residual value at the end of its useful life. The amount of depreciation expense recognized in the year 2021 will be:

$2,400.
$6,000.
$4,444.
$4,800.

2. Which of the following violates the monetary unit concept when measuring, recording, and reporting financial information?

		customer loyalty
		Euros
		Canadian dollar
		U.S. dollar

3. ________ play(s) a fundamental role in the efficient functioning of the economy by providing capital (cash) to businesses.

		IASB
		Employees
		Capital providers
		Managers

Answer 1

Answer :-

1). The correct option is '$6000'

2). Customer Loyalty violates the monetary unit concept when measuring, recording, and reporting financial information

3). Capital Providers play's a fundamental role in the efficient functioning of the economy by providing capital (cash) to businesses.

• Because provider of capital is a person or company which provides capital to a business, usually by being a shareholder