Equipment risks are external risks

Indicate whether the statement is true or false


FALSE

Business

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Long Island Company discards a truck that was originally purchased for $50,000 and had accumulated depreciation of $30,000. Prepare the journal entry for the disposal. Omit explanation.

What will be an ideal response?

Business

The following information relates to the defined benefit pension plan of the Steamer Company for the year ending December 31 . 2014: Projected benefit obligation, January 1 .............. $4,600,000 Projected benefit obligation, December 31 ............ 4,729,000 Fair value of plan assets, January 1 ................. 5,035,000 Fair value of plan assets, December 31 ............... 5,565,000

Expected return on plan assets ....................... 450,000 Amortization of deferred gain ........................ 32,500 Employer contributions ............................... 425,000 Benefits paid to retirees ............................ 390,000 Settlement rate ...................................... 10% The net periodic pension cost reported in the income statement for 2014 would be a. $11,500. b. $24,000. c. $36,500. d. $59,000.

Business

One can analyze the financial health of a business from a single financial statement considered in isolation such as the balance sheet

Indicate whether the statement is true or false

Business

Which of the following terms best describes a distribution of the net income of a corporation to its owners?

A) Retained earnings B) Dividends C) Liquidation of assets D) Revenue

Business