For all questions work to 1 decimal place and assume VAT at 19%. You must justify each answer.1.- Why does a company choose to have bad debts? Explain with a numerical example. 2.- In depreciation by use (per hour), if a Fixed Asset of $1,000 has accumulated depreciation of $600, residual value of $100 and during a period the machine is used for 400 hours when its initial useful life was 40,000 hours, what depreciation should be recognised? 3.- In depreciation by use (per hour), if a fixed asset of $1,000 has accumulated depreciation of $600, residual value of $100 and during a period of time the machine is used for 400 hours when its initial useful life was 40,000 hours and at the beginning of that period there is an improvement of $200, what depreciation should be recognised? 4.- Make the entry for the recognition of the write-off of a customer to whom you had invoiced $1,000 plus VAT if the company had an Allowance for Impairment of Accounts Receivable of $600.5.- Does the Profit after Tax in the Income Statement always coincide with the Profit for the Year, or does this only occur in the first year of the company's operation?
For all questions work to 1 decimal place and assume VAT at 19%. You must justify each answer.
1.- Why does a company choose to have
2.- In
3.- In depreciation by use (per hour), if a fixed asset of $1,000 has accumulated depreciation of $600, residual value of $100 and during a period of time the machine is used for 400 hours when its initial useful life was 40,000 hours and at the beginning of that period there is an improvement of $200, what depreciation should be recognised?
4.- Make the entry for the recognition of the write-off of a customer to whom you had invoiced $1,000 plus VAT if the company had an Allowance for Impairment of
5.- Does the Profit after Tax in the Income Statement always coincide with the Profit for the Year, or does this only occur in the first year of the company's operation?
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