Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise
a. True
b. False
Indicate whether the statement is true or false
True
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The calculation for annual depreciation using the straight-line depreciation method is
a. Initial cost / Estimated useful life b. Initial cost × Estimated useful life c. Depreciable cost × Estimated useful life d. Depreciable cost / Estimated useful life
Jon Winek started the year with a capital balance of $135,000. During the year, his share of partnership net income was $120,000 and he withdrew $22,500 from the partnership for personal use. He made an additional capital contribution of $37,500 during the year. The amount of Jon Winek’s capital balance that will be reported on the year-end balance sheet will be
a. $120,000.
b. $292,500.
c. $225,000.
d. $270,000.
The budget assumes that 60% of commission expenses are paid in the month in which they are incurred and the remaining 40% are paid one month later. In addition, 50% of salaries expenses are paid in the month in which they are incurred, and the remaining 50% are paid one month later. Miscellaneous expenses, rent expense, and utility expenses are assumed to be paid in the same month in which they are incurred. Insurance was prepaid for the year on January 1. Prepare a schedule of cash payments for selling and administrative expenses for the quarter ending June 30.
Chavez Manufacturing Company's budgeted income statement includes the following data:
______ is necessary when preliminary and concurrent controls have failed.
a. Salvage control b. Feedforward control c. Damage control d. Rework control