Accrual accounting requires the use of many estimates, including:
A. Warranty costs.
B. Uncollectible accounts expense.
C. Assets' useful lives.
D. All of these answers are correct.
Answer: D
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Which of the following costs is a mixed cost?
A) Salary of a factory supervisor B) Electricity costs of $2 per kilowatt-hour C) Rental costs of $5,000 per month plus $.30 per machine hour of use D) Straight-line depreciation on factory equipment
A business collects cash from a customer for services that were preformed one month earlier. Which of the following accounts is credited?
A) Cash B) Accounts Receivable C) Service Revenue D) Accounts Payable
The sustainability damage from landfill additives comes in which form?
A) Potential energy lost B) Materials lost C) Terrible smell D) Both A and B
Kareem has $6000 in monetary assets and $2000 in current liabilities. What is his current ratio?
A) 2,000/6,000 B) .334 times C) 6,000/2,000 D) 3 times E) Both C and D are correct.