Ellis Retail is considering an investment in a delivery truck. Ellis has found a used truck that he can purchase for $8,000 . He estimates the truck would last six years and increase his store's net cash revenues by $2,000 per year. At the end of six years, the truck would have no salvage value and would be discarded. Ellis will depreciate the truck using the straight-line method. Refer to Ellis
Retail. What is the accounting rate of return on the truck investment (based on average profit and average investment)?
a. 25.0%
b. 50.0%
c. 16.7%
d. 8.3%
C
$8,000/6 years = $1,333 depreciation expense per year
Net income = $(2,000 - 1,333) = $667 per year
$667/$4,000 = 16.7%
Average Investment = ($8,000 + 0)/2 = $4,000
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Lee and Patricia Cheema own a house in California. The house was owned by Lee Cheema as his separate property before his marriage to Patricia. Improvements were made to the house after the marriage and paid for with community property funds. California
is a community property state and therefore most property acquired during a marriage is community property. Assume that Don Burgunder wishes to buy the property from Lee Cheema. Don will want to be sure that all interests in the property are conveyed to him. Ownership records will show that Lee Cheema is the sole owner. Don, however, would be right to be concerned that Patricia may have some interest in the house because of the community property improvements to it. What type of deed should Don expect from the Cheema's to protect his interests?
Business marketing does NOT include goods and services that:
A. become part of another product B. are used to manufacture other products C. are used for personal consumption D. facilitate the normal operations of an organization E. are acquired for resale
When a use case delegates one or more of its functions to other use cases, the relationship describing this model is called ________
A) an extend relationship B) an include relationship C) a generalization D) either A or B
When an appending data error has occurred, characters have been lost from the field
Indicate whether the statement is true or false