Which one of the following statements is not true?
A) Depreciation is the process of allocating the purchase price of an asset minus its residual value to expense for each period benefited by the asset.
B) The cost of an asset includes all acquisition costs necessary to obtain the benefits to be derived from the asset.
C) The service life of an asset is the measure of the number of years of service expected from the asset before its disposal.
D) The residual value of an asset is the difference between the expected book value of the asset at the end of its service and the costs of disposal.
D
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PPG Industries buys silicon and uses it to manufacture glass for windows. PPG is a ________
A) producer B) not-for-profit C) consumer D) facilitator E) reseller
All other things being equal, an increase in sales price would increase
a. asset turnover. b. profit margin. c. residual income. d. all of the above.
In any type of sales, salespeople should remember to:
A. provide follow-up and service after the sale. B. use highly structured, memorized sales presentations. C. ask people during approach to buy their products. D. avoid seeking customers because customers find sellers. E. spend all their time helping existing customers.
If the contracted goods are unique and fail to be delivered, the buyer can ask a court under 2-716 of the UCC to order:
a. allocation of risk of loss. b. consequential damages. c. cover. d. specific performance.