Seth and Rachel have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investments at 15%; salary allowances of $24,000 and $20,000, respectively; and the remainder to be divided equally. How much of the net income of $90,000 is allocated to Seth?
a. $42,750
b. $47,750
c. $45,000
d. $43,250
d
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Any unamortized bond discount should be reported on the balance sheet of the issuing corporation as a(n)
a. asset. b. direct deduction from retained earnings in the stockholders' equity section. c. addition to the face amount of the bonds in the liability section. d. direct deduction from the face amount of the bonds in the liability section.
Which of the following is/are limitations of ratio analysis?
a. use of acquisition cost for assets rather than current replacement cost or net realizable value b. latitude firms have in selecting from among various generally accepted accounting principles c. changes in many ratios correlate with each other d. must recognize conditions that have changed between the periods being compared when comparing the size of a ratio between periods for the same firm e. all of the above
Which of the following is not an attribute of an effective customer loyalty program?
a. a program where participation rules frequently change b. a reward that is appealing to customers c. a data bank that tracks purchases and rewards eligibility d. an award that is attainable in a reasonable time frame
The relevant range for Maxco Industries is 10,000 to 16,000 units of product. The variable costs per unit are $6 when a company produces 12,000 units of product. What are the variable costs per unit when 14,000 units are produced?
A. $4.50. B. $6.00. C. $5.50. D. $5.00. E. None of the answers is correct.