Building depreciation is an example of a direct product cost in a manufacturing company
Indicate whether the statement is true or false
False
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Western advertising agencies still find markets such as China and Japan to be very complex, as Asian agencies find it just as difficult to establish local agency presence in western markets
Indicate whether the statement is true or false
A company has $817,000 in bonds payable with an unamortized premium of $20,000 . If one-fourth of the bonds are converted to common stock, the entry that would record the conversion is:
a. Bonds Payable 204,250 Common Stock 204,250 b. Bonds Payable 224,250 Common Stock 224,250 c. Common Stock 199,250 Bonds Payable 199,250 d. Bonds Payable 204,250 Unamortized Bond Premium 5,000 Common Stock 209,250
Sailor Construction Company has consistently used the percentage-of- completion method. On January 10, 2014, Sailor began work on a $3,000,000 construction contract. At the inception date, the estimated cost of construction was $2,250,000 . The following data relate to the progress of the contract: Gross profit recognized at December 31 . 2014 .......... $ 300,000 Costs incurred Jan. 10, 2011,
through Dec. 31 . 2015 ... 1,800,000 Estimated cost to complete at December 31 . 2015 ....... 600,000 How much gross profit should Sailor recognize for the year ended December 31 . 2015? a. $150,000 b. $262,500 c. $300,000 d. $450,000
Which of the following is/are not true regarding the classification of redeemable preferred shares on the balance sheet?
a. The classification of redeemable preferred shares on the balance sheet depends on the conditions for redemption. b. If only the issuing firm has the option to redeem, then the preferred shares are part of its liabilities. c. If the issuing firm must redeem the preferred shares (so-called "mandatory redemption"), either at a specified time or upon a specified condition certain to occur, the issuing firm treats the preferred shares as a liability. d. If the preferred shareholders have the option to require redemption, then the preferred shares appear between liabilities and shareholders' equity under U.S. GAAP. e. If the preferred shareholders have the option to require redemption, then the preferred shares appear as a liability under IFRS.