TQK, LLC, provides consulting services and was formed on 1/31/X5. Aaron and ABC, Inc., each hold a 50 percent capital and profits interest in TQK. If TQK averaged $27,000,000 in annual gross receipts over the last three years, what accounting method can TQK use for X9?
A. Hybrid method.
B. Accrual method.
C. Cash method.
D. Accrual method or cash method.
Answer: B
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Unearned rent would normally appear on the balance sheet as a
a. plant asset. b. current liability. c. long-term liability. d. current asset.
Total pension expense recognized over the life of a pension plan will be
a. the same as the amount of the cash funding (including interest earned). b. more than the amount of the cash funding (including interest earned). c. less than the amount of the cash funding (including interest earned). d. the amount contributed over the life of the plan less the total actual return on plan assets.
Assume the following sales data for a company: 2010 $1,017,000 2009 565,000 What is the percentage increase in sales from 2009 to 2010?
A) 100% B) 80% C) 180% D) 44.4%
A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $170,000. The present value of the future cash flows is $185,000. The company's desired rate of return used in the present value calculations was 10%. Which of the following statements is true?
A) The project should not be accepted because the net present value is negative. B) The internal rate of return on the project is less than 10%. C) The internal rate of return on the project is more than 10%. D) The internal rate of return on the project is equal to 10%.