Which of the following costs related to the purchase of production equipment incurred by ABC Company during 2011 would be considered a revenue expenditure?
A) Installation costs for equipment
B) Purchase price of the equipment less the cash discount
C) Repair and maintenance costs during the equipment's first year of service
D) Transportation charges to deliver the equipment to ABC Company
C
You might also like to view...
Different accounting practices will not have an impact on the comparative ratio analysis of the firms.
Answer the following statement true (T) or false (F)
Which of the following statements is true of financial forecasts in the financial planning process?
A. The forecast of money the firm needs is estimated by adding the increases in assets and spontaneous liabilities and subtracting the operating income. B. The projected balance sheet method of forecasting financial needs requires only a forecast of the firm's balance sheet. C. The projected balance sheet method forces recognition of the fact that new financing creates additional financial obligations. D. The projected balance sheet method of forecasting financial needs does not consider dividends paid out to shareholders as these are after tax payments from retained earnings. E. The financial forecasts of a firm do not consider the forecasts of the economic prospects for the nation and the industry.
Detailed Designs Company, an architectural firm, wants to hire Eduardo, a noncitizen. A temporary work visa is most likely to be set aside for a noncitizen who is
A. a "person of ethnic similarity to the employer's workforce." B. a "person of extraordinary ability." C. a "person of ordinary ability and ambition." D. a "person with an extraordinary work ethic."
Which of the following statements about the ownership of a life insurance policy is (are) true?
I. Under the ownership clause, the policyholder and beneficiary equally share all contractual rights in the policy while the insured is living. II. The policyholder can designate a new owner by filing an appropriate form with the insurance company. A) I only B) II only C) both I and II D) neither I nor II