When the lender provides the borrower with an amount of funds that must be repaid to the lender at the maturity date, along with an additional payment for the interest, it is called a ________
A) fixed-payment loan
B) discount loan
C) simple loan
D) none of the above
C
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Which of the following is NOT an implication of the going-concern assumption?
a. The historical cost principle is credible. b. Depreciation and amortization policies are justifiable and appropriate. c. The current/noncurrent classification of assets and liabilities is justifiable and significant. d. Amortizing research and development costs over multiple periods is justifiable and appropriate.
A cost of production report may be used to make a decision about ________
a. yield b. All of these choices. c. changes in conversion cost per unit d. changes in direct materials cost per unit
Bourland Corporation is considering a capital budgeting project that would require investing $80,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $250,000 and annual incremental cash operating expenses would be $180,000. The project would also require a one-time renovation cost of $40,000 in year 3. The company's income tax rate is 30% and its after-tax discount rate is 8%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The income tax expense in year 3 is:
A. $3,000 B. $15,000 C. $12,000 D. $21,000
Decorte Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:Total direct labor-hours10,000Total fixed manufacturing overhead cost$33,000Variable manufacturing overhead per direct labor-hour$2.50Recently, Job K332 was completed with the following characteristics:Number of units in the job70Total direct labor-hours140Direct materials$455Direct labor cost$5,320The amount of overhead applied to Job K332 is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $462 B. $350 C. $1,162 D. $812