U.S. GAAP specifies criteria for a capital lease. Which of the following is not one of the criteria?
a. The lease transfers ownership of the leased asset to the lessee at the end of the lease term.
b. Transfer of ownership at the end of the lease term seems likely because the lessee has a bargain purchase option.
c. The lease extends for at least 75% of the asset's expected useful life.
d. The present value of the contractual minimum lease payments equals or exceeds 75% of the fair value of the asset at the time the lessee signs the lease using a discount rate appropriate for the creditworthiness of the lessee.
e. The present value of the contractual minimum lease payments equals or exceeds 90% of the fair value of the asset at the time the lessee signs the lease using a discount rate appropriate for the creditworthiness of the lessee.
D
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Items should be reported as part of the company's "inventory" at year end, if they are
a. Purchased from a creditor, available for sale, and paid for the following year. b. Held in anticipation of an increase in market value. c. Determined to be part of cost of goods sold. d. Sold during the period.
Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year: Total sales $1,000,000 Costs of quality: Prevention 22,500 Appraisal 47,000 Internal failure 36,000 External failure 64,000 Compute the costs of nonconformance as a percentage of total sales
a. 12.0% b. 5.4% c. 1.3% d. 10%
Many high-performance work systems begin with highly directive
A. compensation policies. B. work flow systems. C. recruitment and selection practices. D. top-down communication systems.
The following information is needed to reconcile the cash balance for Johnson Catering Services
" ¢ A deposit of $5,800 is in transit. " ¢ Outstanding checks total $1,100. " ¢ The book balance is $6,000 at February 28, 2017 • The bookkeeper recorded a $1,700 check as $17,300 in payment of the current month's rent. • The bank balance at February 28, 2017 was $17,230. • A deposit of $400 was credited by the bank for $4,000. • A customer's check for $3,200 was returned for nonsufficient funds. • The bank service charge is $70. What was the adjusted book balance? A) $18,400 B) $18,330 C) $18,470 D) $17,300