The most common method of discharging a negotiable instrument is by
a. bankruptcy.
b. payment.
c. alteration.
d. cancellation.
B
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Nonresponse, while an issue in the research industry, is certainly not one of the major problems confronting the industry
Indicate whether the statement is true or false
Firms initially record property, plant, and equipment, sometimes referred to as fixed assets, at acquisition cost, the cash paid or the fair value of other consideration given in exchange for the asset. Which of the following is/are true?
a. Acquisition cost includes all costs necessary to prepare the asset for its intended use. b. Firms capitalize into the asset's carrying amount subsequent expenditures that extend the service life or increase the benefits of a fixed asset beyond those initially anticipated. c. Buildings and equipment have a finite life, so firms must depreciate their acquisition cost less estimated salvage over the expected service life. d. Firms may use a straight-line method or accelerated depreciation methods. e. all of the above
A company has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 6% of outstanding receivables are uncollectible. The current debit balance (before adjustments) in the allowance for doubtful accounts is $1,200. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for $6,000.
Answer the following statement true (T) or false (F)
Consignment goods are:
A. Not reported in the consignor's inventory since they do not have possession of the inventory. B. Reported in the consignee's books as inventory. C. Goods shipped by the owner to the consignee who sells the goods for the owner. D. Goods shipped to the consignor who sells the goods for the owner. E. Always paid for by the consignee when they take possession.