Multiple Questions Answers

1. The factor that is not relevant in computing depreciation is
 salvage value.
useful life.
 replacement value.
cost.

2. Lincoln Company sells 600 units of a product that has a one-year warranty on parts.
The average cost of honoring one warranty contract is $50. During the year 30 contracts are honored
 at a cost of $1,500. It is estimated that 60 contracts will be honored in the following year. The adjusting
 entry at the end of the current year will include a
debit to Warranty Expense for $4,500.
credit to Estimated Warranty Liability for $3,000.
credit to Estimated Warranty Liability for $4,500.
debit to Warranty Expense for $1,500.

3. The paid absence that is most commonly accrued is
voting leave.
vacation time.
maternity leave.
 disability leave.

4. Most companies pay current liabilities
by issuing stock.
by creating long-term liabilities.
out of current assets.
by issuing interest-bearing notes payable.