All of the following are true regarding Health Savings Accounts except
A) they allow individuals to pay for current health care expenses on a tax-free basis.
B) they allow individuals to save for future health care expenses on a tax-free basis.
C) balances in HSAs earn interest before they are spent.
D) unspent HSA funds are lost as the end of the year.
Answer: D
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If a company uses the direct write-off method of accounting for bad debts,
a. It is applying the matching principle. b. It will record bad debt expense only when an account is determined to be uncollectible. c. It will reduce the accounts receivable account at the end of the accounting period for estimated uncollectible accounts. d. It will report accounts receivable in the balance sheet at their net realizable value.
Athens Company's salaried employees earn two weeks of vacation per year. The company estimated and must expense $9800 of accrued vacation benefits for the year. Which of the following is the necessary year-end adjusting entry to record accrued vacation benefits?
A. Debit Vacation Benefits Expense $19,700; credit Vacation Benefits Payable $19,700. B. Debit Vacation Benefits Payable $19,700; credit Vacation Benefits Expense $19,700. C. Debit Vacation Benefits Payable $9800; credit Vacation Benefits Expense $9800. D. Debit Vacation Benefits Expense $9800; credit Vacation Benefits Payable $9800. E. Debit Vacation Benefits Expense $20,360; credit Vacation Benefits Payable $20,360.
Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $281,656, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $76,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.):Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.
A. 19% B. 18% C. 16% D. 21%
Which of the following is not an example of real property?
A. Mobile home attached to a foundation B. Storage shed not attached to the land C. Factory D. Garage