Nielsen Cargo Company recently exchanged an old truck, which cost $108,000 and was one-third depreciated, and paid $70,000 cash for a similar truck having a current fair value of $130,000 . The exchange lacked commercial substance. At what amount should the truck be recorded on the books of Nielsen?
a. $70,000
b. $108,000
c. $130,000
d. $142,000
C
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A company made the following cash expenditures on a self-constructed building begun January 1 of the current year: January 1 ............................................ $50,000 June 1 ............................................... 60,000 December 1 ........................................... 90,000 The building is still under construction at year-end. What is the amount of the average
accumulated expenditures for the purpose of capitalizing interest? a. $87,500 b. $92,500 c. $100,000 d. $200,000
The type of goods for which a responsive supply chain is appropriate are:
A) fashion goods. B) products with a long shelf life. C) expensive products. D) those with infrequent design changes.
Which of the following statements is true?
I. Serving similar customers with similar demand characteristics is an example of market focus II. A company specializing in assembling cars is an example of process focus. III. A focused factory specializes in a wide product mix. A) II and III only are true. B) I and II only are true. C) I only is true. D) I and III only are true. E) I, II and III are true.
Identify the purpose of a transaction processing system used in organizations
A) to support the activities within a specific functional area of the firm B) to handle day-to-day business event data at the operational level of the organization C) to produce detailed information to help manage a firm or part of a firm D) to support the coordination of suppliers, product or service production, and distribution E) to enable customers to buy goods and services from a firm's Web site