The replacement of a major component increased the productive capacity of equipment from 10 units per hour to 18 units per hour. The expenditure for the replacement component should be debited to:
A. Equipment.
B. Gain from Repairs.
C. Maintenance Expense.
D. Repairs Expense.
Answer: A
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Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $100,000 and $140,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $130,000 . What amount of loss on realization should be allocated to Winston?
a. $110,000 b. $97,500 c. $42,500 d. $82,500
One of the basic requirements for an instrument to be negotiable is that it must be payable:
A. to a specific person. B. "to order" or "to bearer." C. on fulfillment of a conditional promise. D. in cash or kind.
Sandpiper Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $50. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $20. What is the minimum transfer price if the division is operating at capacity?
A) $150 B) $50 C) $70 D) $20
To make data collected from customer satisfaction surveys useful, a company should do which of the following?
A) protect the information from data mining B) compare the data to the company's previous ratings C) purchase a formal CRM system D) determine the CLV E) offer a reward program