Which of the following lease conditions would result in a capital lease to the lessee?
A) The lessee will return the property to the lessor at the end of the lease term.
B) The lessee obtains enough rights to use the asset and is in substance the owner.
C) The leased asset is not capitalized on the balance sheet.
D) The lease term is 70% of the property's economic life.
B
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A small firm is likely to benefit significantly from strategic planning
A. regardless of the nature of its industry or market. B. when it is in a very competitive industry. C. when it is in a very new industry. D. when it is in a very stable industry. E. when it has a very small market.
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Which of the following actions should a marketer take in response to the new economy?
A) Offer selected discounts. B) Cut marketing budgets. C) Hold the line on prices. D) Cut costs. E) Discontinue products.
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000,
$60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period for direct materials is: A) Work in Process--Department 3 100,000Materials 100,000 B) Work in Process--Department 3 125,000Materials 125,000 C) Work in Process--Department 3 50,000Materials 50,000 D) Work in Process--Department 3 70,000Materials 70,000