• Q : Which of the is a proper classification of cost....
    Accounting Basics :

    A company which manufactures custom-made machinery routinely incurs sizable telephone costs in the process of taking sales orders from customers. Which of the following is a proper classification of

  • Q : The depreciation resulted from using the straight-line....
    Accounting Basics :

    On January 1, 2014, the Ferman Company ledger shows Equipment $36,000 and Accumulated Depreciation $13,600. The depreciation resulted from using the straight-line method with a useful life of 10 yea

  • Q : The truck is expected to have a salvage value....
    Accounting Basics :

    Howe Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2014. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life.

  • Q : Calculate the present value of this annuity....
    Accounting Basics :

    The payments of $1 continue forever. That annual effective rate of interest is 6%. Calculate the present value of this annuity.

  • Q : Calculate the current assets section of the balance sheet....
    Accounting Basics :

    Prepare the current assets section of the balance sheet for Gehrig Company, assuming that in addition to the receivables it has cash of $90,000, merchandise inventory of $180,000, and supplies of $1

  • Q : What is the standard price or rate....
    Accounting Basics :

    Topaz Company makes one product and has set the following standards for materials and labor: Direct Materials Direct Labor Standard quantity or hours per unit ? pounds 2.20 hours Standard price or r

  • Q : The machine under each depreciation method....
    Accounting Basics :

    A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1.

  • Q : What is the amount of current liabilities....
    Accounting Basics :

    The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $412,200, what is the amount of current liabilities?

  • Q : Calculate the effect of the lifo on the income....
    Accounting Basics :

    The Reuschel Company began 2013 with inventory of 10,000 units at a cost of $7 per unit. During 2013, 50,000 units were purchased for $8.50 each. Sales for the year totaled 54,000 units leaving 6,00

  • Q : Net increase or decrease in cash....
    Accounting Basics :

    What would be the effect on the "Net increase or decrease in cash" on the statement of cash flows if adjustments (a) and (f) were omitted at the end of theyear? 

  • Q : Purchase new high-tech factory machinery....
    Accounting Basics :

    Compute the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to 0 decimal places, e.g. 2,

  • Q : Discuss the arguments for and against the capitalization....
    Accounting Basics :

    Determine the amounts to be recorded on the books of Selig Goods Inc. December 31,2008 for each of the following properties acquired from Lebron Athletic Equipment Company. Land Building, Machinery.

  • Q : What is the current market rate....
    Accounting Basics :

    A company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31.

  • Q : What types of non-current assets are carried on balance....
    Accounting Basics :

    What types of Non-Current assets are carried on the balance sheet?What is the company's percentage of non-current assets to total assets for the years presented?

  • Q : What is the present value of an annuity....
    Accounting Basics :

    A company purchased equipment and signed a 7-year installment loan at 9% annual interest. The annual payments equal $9,000. The present value of an annuity for 7 years at 9% is 5.0330.

  • Q : What is the amount of gross trade accounts receivable....
    Accounting Basics :

    Assume that all sales are made on a credit basis, that the company provides no allowances for sales returns, that no previously written-off receivables were collected, and that all sales relate to t

  • Q : What amount will be reported on nanas income....
    Accounting Basics :

    What amount will be reported on Nana's Income Statement for period 4? Explain how it will be presented on that statement.

  • Q : What amount was received for the bonds....
    Accounting Basics :

    Renfro Company issued $500,000 of 8%, 10-year bonds at $534,960. Interest is paid annually, and the effect interest method is used for amortization.

  • Q : What is meant by the term transferred-out cost....
    Accounting Basics :

    What is meant by the term transferred-out cost? Why does the transferred-out cost under the WA method include only one computation but the FIFO method includes multiple computations?

  • Q : What is the effective interest method of amortization....
    Accounting Basics :

    A company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31.

  • Q : A majority of the voting stock of another corporation....
    Accounting Basics :

    If a company has investments in available-for-sale securities and has received a cash dividend the journal entry would record.

  • Q : Explain how the conventional cost assignments would differ....
    Accounting Basics :

    Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost po

  • Q : What is the present value of the truck....
    Accounting Basics :

    CPM Construction plans to buy a truck for $150,000and sell it for $15,000 at the end of 5 years. The annual operating cost of the vehicle is $60,000. 1)What is the equivalent annual cost of this tru

  • Q : What subjective factors would affect the investment decision....
    Accounting Basics :

    Deer Valley Lodge, a ski area near Salt Lake City, has plans to eventually add five new chairlifts. Suppose that one of the lifts costs $2.2 million, and preparing the slope and installing the lift

  • Q : What would be the expected capital turnover....
    Accounting Basics :

    Consider the following data regarding budgeted operations for 20X7 of the Portland division of Machine Products: Average total assets Receivables $220,000 Inventories $290,000 Plant & equipment.

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