In the one-period present-value equation, P = F/(1 + i), the term i is known as
A. future value.
B. present value.
C. the rate of discount.
D. the discount factor.
Answer: C
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A trademark can be any of the following except a
A. symbol. B. phrase. C. word. D. formula.
After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Zott, $45,000; Payne, $60,000; Tejada, $47,000 . If Tejada retired and withdrew $47,000 in settlement of his equity, the debit to his capital account would be in the amount of
a. $60,000. b. $58,000. c. $47,000. d. $94,000.
List at least three one-time costs and three recurring costs in system development
The Norran Company needs 15,000 units of a certain part to use in its production cycle. If Norran buys the part from Waterloo Company instead of making it, Norran could not use the released facilities in another activity; thus, all of the fixed overhead applied will continue regardless of what decision is made. Accounting records provide the following data: Cost to Norran to make the part: Direct
materials, $3 Direct labor, $12 Variable overhead, $13 Fixed overhead applied, $8 Cost to buy the part from the Waterloo Company, $27 In deciding whether to make or buy the part, Norran's total relevant costs to make the part are a. $360,000. b. $240,000. c. $420,000. d. $405,000.