Which of the following amounts is not included in the computation of amount realized in an exchange?
A. Cash received.
B. Adjusted basis of property transferred.
C. Selling expenses.
D. Fair market value of property received.
Answer: B
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Which of the following is the best example of theft of cash through skimming?
a. Preparing fraudulent checks. b. Understating sales by recording larger-than reality sales discounts. c. Setting up dummy companies. d. Stealing cash after it has already been recorded.
Which of the following is a disadvantage of co-production for the organization?
a. possibility of alienating customers who dislike change b. additional cost to train customer contact employees c. decrease in labor costs d. decrease opportunity for service failure
Ash, Bush and Cobb decide to liquidate their partnership. Net income or net loss is shared equally. The account balances are: Cash $4,000; Noncash Assets $44,000; Liabilities $8,000; Capital, Ash $10,000; Capital, Bush $20,000; Capital, Cobb $10,000 . If the noncash assets are sold for $50,000, Ash's final cash distribution will be:
a. $12,000 b. $10,000 c. $30,000 d. $18,000 e. $62,000
A company's ledger is:
A. A record containing all accounts and their balances used by the company. B. A list of all accounts a company uses with an assigned identification number. C. A collection of documents that describe transactions and events entering the accounting process. D. A journal in which transactions are first recorded. E. A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.