A prefabricated steel storage shed is purchased for $20,000 cash and a $80,000 interest-bearing note payable over a 5-year period at an annual interest rate of 10 percent per annum. The cost to be recorded as an asset (in addition to the $100,000 purchase price) should include all of the following except
a. shipping and handling charges.
b. insurance while in transit.
c. interest on the note payable.
d. reassembly and installation costs.
e. All of these answer choices are costs to be recorded as assets.
C
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Nonmanagerial employees at Kennedy Steel belong to a union. The union has come close to striking several times over the years, and labor negotiations have recently been very tense. Kennedy likely needs to focus on changing
A. values among potential customers. B. the likelihood that an acquisitions might occur. C. manufacturing processes and procedures. D. population variables. E. forces originating inside the organization.
If demand falls by 1 percent when price is increased by 2 percent, then ________
A) elasticity is -1/2 B) demand is inelastic C) demand is elastic D) buyers are not price sensitive E) A and B
U.S. GAAP and IFRS distinguish between revenues and expenses on the one hand and gains and losses on the other. Which of the following is/are true?
a. Revenues and expenses result from the recurring, primary operating activities of a business. b. Income items include the ordinary, recurring operating activities of the firm. c. Gains and losses result from either peripheral activities or nonrecurring activities. d. The reporting of revenues and expenses are at gross amounts, and firms report gains and losses at net amounts. e. all of the above
A random sample of 81 children with working mothers showed that they were absent from school an average of 6 days per term with a standard deviation of 1.8 days. Provide a 95% confidence interval for the average number of days absent per term for all the children in the school.
What will be an ideal response?