To determine how well her business is doing, Darlene should monitor the return on her investment (equity) because it is a better measure of performance than the
A. return on assets ratio.
B. current ratio.
C. quick ratio.
D. absolute dollar amount of net profits.
Answer: D
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If a company constructs an asset over a period of time and borrows money, the amount of interest incurred during construction on the borrowed money is
a. capitalized as part of the cost of the plant asset. b. amortized over the construction period. c. reported as interest expense on the income statement. d. reported as depletion on the income statement.
Acquisition cost is also referred to as:_____________________
Fill in the blank(s) with correct word
What are the conditions under which holographic wills are recognized as valid?
What will be an ideal response?
On January 1 . 2011, Caravanos Company purchased for $320,000 a machine with a useful life of ten years and no salvage value. The machine was depreciated by the double-declining-balance method, and the carrying amount of the machine was $204,800 on December 31 . 2012 . Caravanos changed to the straight-line method on January 1 . 2013 . Caravanos can justify the change. What should be the
depreciation expense on this machine for the year ended December 31 . 2014? a. $20,480 b. 25,600 c. 32,000 d. 52,480