Rodeo, Inc. has a contribution margin ratio of 45%. This month, profit was $40,000 and fixed costs were $50,000. How much was Laredo's sales revenue?
A. $40,500
B. $200,000
C. $111,111
D. $90,000
Answer: B
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Which of the following statements is true concerning external users of financial information?
a. External users need detailed records of the business to make informed decisions. b. External users are primarily responsible for the preparation of financial statements. c. External users rely on the financial statements to help make informed decisions. d. External users rely on management to tell them whether the company is a good investment
Russell Corporation issued $224,000 of 12 percent bonds (at face value) one month after the last semi-annual interest date. Which of the following is the entry to record the issuance?
A) Cash 226,240 Bonds Payable 224,000Bond Interest Expense 2,240 B) Cash 226,240 Bonds Payable 226,240 C) Cash 212,800 Bond InterestExpense 11,200Bonds Payable 224,000 D) Cash 235,200 Bonds Payable 224,000Bond Interest Expense 11,200
On January 1, 20X2, Pint Corporation acquired 80 percent of Size Corporation for $200,000 cash. Size reported net income of $25,000 each year and dividends of $5,000 each year for 20X2, 20X3, and 20X4. On January 1, 20X2, Size reported common stock outstanding of $160,000 and retained earnings of $40,000, and the fair value of the noncontrolling interest was $50,000. It held land with a book value of $90,000 and a market value of $100,000, and equipment with a book value of $40,000 and a market value of $48,000 at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of eight years. All depreciable assets held by Size at the date of acquisition had a remaining economic life of
eight years. Pint uses the equity method in accounting for its investment in Size.Based on the preceding information, what balance would Pint report as its investment in Size at January 1, 20X5? A. $248,000 B. $260,000 C. $236,000 D. $300,000
The objective function of the assignment method in business settings always seeks to maximize revenue, profit, or another organizational metric
a. True b. False