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2. Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $36,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $3,000. What is the depreciation cost per unit? (Points : 3)

       one year through the creation of other current liabilities.        the operating cycle through the creation of other current liabilities.        one year or the operating cycle out of current assets.        the operating cycle out of current assets.

       financing activities.        investing activities.        operating activities.        either financing or investing activities.

       bond interest is deductible for tax purposes.        interest must be paid on a periodic basis regardless of earnings.        income to stockholders may increase as a result of trading on the equity.        the bondholders do not have voting rights.

       two cash effects can be netted and presented as one item in the investing activities section.        cash inflow and cash outflow should be reported separately in the investing activities section.        two cash effects can be netted and presented as one item in the financing activities section.        cash inflow and cash outflow should be reported separately in the financing activities section.

       equal to the note's face value.        greater than the note's face value.        less than the note's face value.        equal to the note's maturity value.

       Common Stock Dividends Distributable is decreased.        Retained Earnings is decreased.        Paid-in Capital in Excess of Par is debited if it is a small stock dividend.        no entry is necessary if it is a large stock dividend.

       noncash investing and financing activities.        net increase (decrease) in cash.        cash at the end of the period.        cash at the beginning of the period.

       $75,000.        $45,000.        $81,660.        $51,660.

       increase the market price per share.        exceed stockholders' dividend expectations.        increase the marketability of the stock.        decrease the amount of capital in the corporation.

       corporation is organized for the purpose of making a profit.        corporation is subject to more federal and state government regulations.        corporation is an accounting economic entity.        corporation's temporary accounts are closed at the end of the accounting period.

       registered bonds.        coupon bonds.        bearer bonds.        direct bonds.

       no uncollectible accounts.        a very strict credit policy.        a very lenient credit policy.        some accounts that will prove to be uncollectible.

       conversion of bonds into common stock.        asset acquisition through bond issuance.        treasury stock acquisition.        exchange of plant assets.

       a stockholder is personally liable for the debts of the corporation.        stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation.        the corporation's life is stipulated in its charter.        stockholders wishing to sell their corporation shares must get the approval of other stockholders.

       an avoidable cost in doing business on a credit basis.        an internal control weakness.        a necessary risk of doing business on a credit basis.        avoidable unless there is a recession.

       the company makes any credit sales.        bad debts are significant in amount.        the company is a retailer.        the company charges interest on accounts receivable.

       leveraging with debt is always a better idea.        their earnings per share may decrease.        the price of the stock will automatically decrease.        dividends must be paid on a periodic basis.

       greater than the par or stated value.        less than the par or stated value.        equal to the par or stated value.        at least equal to the par or stated value.

       owner cash contributions.        mail receipts.        cash disbursement transactions.        sales transactions.

       asset.        liability.        miscellaneous expense.        miscellaneous revenue.

       credit Cash Over and Short for $2.        credit Miscellaneous Revenue for $2.        debit Cash Over and Short for $2.        debit Miscellaneous Expense for $2.

       the wishes of the custodian of the fund.        anticipated disbursements for the year.        anticipated disbursements for a three- to four-week period.        the size of the regular cash account.

       a contingency that is reasonably likely to occur.        a written promissory note.        an oral agreement.        a standing agreement.

       $3,000,000        $90,000        $300,000        $210,000