When disposing of equipment, the Equipment account is credited for the existing carrying value
Indicate whether the statement is true or false
F
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Which of the following factors is not related to the decline in the usefulness of plant and equipment assets, and therefore does not need to be considered in selecting an appropriate depreciation method?
a. Physical deterioration b. Obsolescence c. Repair and maintenance policies d. Current replacement cost
Comment on how an investor would use each of the following ratios to evaluate business performance.
Alpine Productions uses a standard cost system for recording transactions. Alpine reported the following data for the year ended December 31:
Sales revenues: $800,000
Cost of goods sold (standard costing): $382,000
Selling & administrative expenses: $105,000
What is the net operating income on a standard cost income statement?
A) $312,665
B) $316,765
C) $421,765
D) $313,000
Favorable variances are represented by credit balances in the overhead account
Indicate whether the statement is true or false