A U.S. company makes a sale to a foreign customer receivable in 30 days in the customer's currency. The sale would be recorded by the U.S. company on the date:
A) Of sale using a projected estimate of the U.S. dollar value at payment date.
B) Of sale using a 30-day average U.S. dollar value.
C) Of sale using the current dollar value.
D) Of sale using the foreign currency value.
E) When payment is received.
C) Of sale using the current dollar value.
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If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?
A. $2.50. B. $8.00. C. $1.60. D. $5.50. E. $0.90.
Inadvertently, Brie loses her textbook during an afternoon in City Park. She eventually gives up any attempt to find it. The textbook will then most likely be considered
A. abandoned property. B. converted property. C. lost property. D. mislaid property.
A partnership terminates for tax purposes
A. only when it terminates under local partnership law. B. when a partnership tax return (Form 1065) ceases to be filed by the partnership. C. when the sale of partnership assets is made only to an outsider(s) and not to an existing partner(s). D. when at least 50% of the total interest in partnership capital and profits changes hands by sale or exchange within twelve consecutive months.
Which of the following is a disadvantage of a sole proprietorship?
A) ?The owner is personally liable for the debts of the firm. B) ?The firm is subject to double taxation. C) ?The profits of the firm have to be shared between its members. D) ?The costs of formation of the firm are more compared to other business forms.