Principles of Accounting
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Q1. Compare the different depreciation methods. Give an example of how companies depreciate their plant assets under each method. (2 Marks)
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Q2. How are liabilities classified? Why is it important to classify liabilities? (1 Mark)
Q3. On July 31, a company declared a cash dividend of SR0.25 per common share to the shareholders of record on August 15. The cash dividend will be paid on August 25. This company has 500,000 shares authorized and 100,000 shares outstanding. Prepare the journal entries required on July 31, August 15 and August 25 (2 Marks).
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