MTG 2022 RED ROOM

3. _____ cost is the monetary value of the next best alternative given up.
7. ___________ interest is the interest charged on principal only.
8. A debit entry will _______________ (increase, decrease) the usual balance in a liability account.
12. Jack bought his car at $400,000. It has a useful life of 10 years and a residual value of $100,000. Using straight-line depreciation, how much would the annual depreciation be?
13. When you discount a future amount to its present value, the amount that is removed is referred to as ______________.
15. If the interest is compounded semiannually for five years from time (t = 0), what is the number of periods (n)?
16. Earning money based on money that was also previously earned is ________ interest.
17. the accounting ____________ is assets = liabilities + owner’s equity
19. What is the minimum number of accounts involved in recording every transaction?

1. A __________-asset account would be used to accumulate the depreciation taken on assets.
2. A ___________ can be viewed as a creditor's claim on a company's assets.
4. A company’s net income for the year will end up in the account _________ Earnings.
5. The systematic allocation of the cost of an asset used in the business over the useful life of the asset is?
6. To calculate the present value of an asset, the four elements required are the interest rate, the number of periods and the ______ cash amount.
9. Spencer purchased a machine for $3,000. What is the opportunity cost of the machine if he can resell it for $2,000?
10. Depreciation is often referred to as a non-______ expense.
11. A contra-asset account will have a _____________ balance.
13. I am an expense in the profit or loss account remitted to the government. What am I?
14. _____ cost is a past expenditure that cannot be recovered.
18. Sales minus the cost of goods sold is the ____________ profit.