Which of the following is true of the Premium on Bonds Payable account?
A) It is added to the Bonds Payable balance and shown with long-term liabilities on the balance sheet.
B) It is added to the Bonds Payable balance and shown with stockholders' equity on the balance sheet.
C) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet.
D) It is subtracted from the Bonds Payable balance and shown with the current liabilities on the balance sheet.
A
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Mohr Company purchases a machine at the beginning of the year at a cost of $40,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 8 years with a $9000 salvage value. The book value of the machine at the end of year 2 is:
A. $23,250. B. $32,250. C. $31,000. D. $3875. E. $7750.
Use this information to answer the following question. These facts concern the long-term stock investments of DeBord Corporation: June 1, 2014 Paid cash for the following long-term investments: 5,000 shares Vanhook Corporation common stock (representing 5 percent of outstanding stock) at $40 per share; 3,000 shares Shust Corporation common stock (representing 3 percent of outstanding stock) at
$24 per share. Dec. 31, 2014 Quoted market prices at year end: Vanhook common stock, $35; Shust common stock, $27. April 1, 2015 A change in policy required the sale of 1,000 shares of Vanhook Corporation common stock at $38. July 1, 2015 Received a cash dividend from Shust Corporation equal to $.30 per share. Dec. 31, 2015 Quoted market prices at year end: Vanhook common stock, $39; Shust common stock, $22. The entry to adjust the Allowance to Adjust Long-Term Investments to Market in 2015 is: A) Unrealized Loss on Long-Term Investments 6,000 Allowance to Adjust Long-Term Investment to Market 6,000 B) Allowance to Adjust Long-Term Investment to Market 10,000 Unrealized Loss on Long-Term Investments 10,000 C) Unrealized Loss on Long-Term Investments 10,000 Allowance to Adjust Long-Term Investment to Market 10,000 D) Allowance to Adjust Long-Term Investment to Market 6,000 Unrealized Loss on Long-Term Investments 6,000
Suppose the standard for a given cost during a period was $80,000 . The actual cost for the period was $72,000 . Under what circumstances would you consider the variance from budget to be a positive performance indication?
a. The cost is fixed, and actual production was 90 percent of the standard level of budgeted production. b. The cost is variable, and the standard cost noted above is the cost at a production level lower than the actual production level. c. The cost is variable, and actual production was 90 percent of the standard level of production. d. The cost is variable, and actual production was 75 percent of the standard level of production.
Most service-quality experts say that __________ is the most critical element in building a customer-oriented company.
A. talent B. management C. ethics D. compensation E. communication