Avocado Company has an operating income of $80,000 on revenues of $1,000,000. Average invested assets are $500,000 and Avocado Company has an 8% cost of capital. What is the residual income?
A. $20,000
B. $100,000
C. $120,000
D. $40,000
Answer: D
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In regards to the accounts payable department, which statement is NOT true?
a. The purchase requisition shows that the transaction was authorized. b. The purchase order proves that the purchase was required. c. The receiving report provides evidence of the physical receipt of the goods. d. The supplier's invoice indicates the financial value of the transaction.
Which of the following statements is true about successful efforts accounting?
a. It is a depreciation method b. All costs are recorded as assets and then depleted over the resource's useful life. c. The cost of a dry well would be written off immediately as a loss. d. The cost of successful exploration is recorded as an asset and is not written off.
It is appropriate to use blind carbon copy in an email, as long as the use promotes the success of the organization
Indicate whether the statement is true or false.
On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?
A. $750. B. $5,270. C. $6,750. D. $6,000. E. $18,000.