The type of business that has only one owner is a:
a. partnership.
b. corporation.
c. sole proprietorship.
d. merchandising business.
e. manufacturing business.
c
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Jacks Corporation purchases $200,000 bonds plus accrued interest for 2 months of $2,000 from Kennedy Company on March 1 . The bonds have an annual interest rate of 6% payable on June 30 and December 31 . The entry to record the purchase of the bonds would include a
a. debit to Interest Receivable for $2,000 b. debit to Investment in Bonds for $202,000 c. debit to Cash for $200,000 d. credit to Interest Revenue for $2,000
Which of the following inventory costing methods reports most closely the current cost of inventory on the balance sheet?
a. FIFO b. Specific identification c. Weighted average d. LIFO
What is the trend in public employee pensions and health care benefits?
What will be an ideal response?
Aerotoy Company makes toy airplanes. One plane is an excellent replica of a 737; it sells for $5. Vacation Airlines wants to purchase 12,000 planes at $1.75 each to give to children flying unaccompanied. Costs per plane are as follows: Direct materials $1.00 Direct labor 0.50 Variable overhead 0.10 Fixed overhead 0.90 No variable marketing costs would be incurred. The company is operating
significantly below the maximum productive capacity. No fixed costs are avoidable. However, Vacation Airlines wants its own logo and colors on the planes. The cost of the decals is $0.01 per plane and a special machine costing $1,500 would be required to affix the decals. After the order is complete, the machine would be scrapped. Should the special order be accepted? A) Yes, income will increase by $300 B) Yes, income will increase by $180 C) No, income will decrease by $1,500 D) No, income will decrease by $180 E) It doesn't matter, there will be no change in income