Acquisition cost includes all of the costs that are normal and necessary to acquire and maintain a plant asset over its useful life
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following statements is true with respect to long-term liabilities?
a. They are obligations that will be satisfied within one year. b. An account payable is a good example of a long-term liability because it is interest-bearing. c. Long-term liabilities include bonds, other long-term liabilities and deferred income taxes. d. Accrued expenses are considered to be long-term liabilities.
On June 30, Greenville Manufacturing finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory. On July 6, Greenville completed the sale of the goods to a customer for $55,000 on account.
Provide the entry to record the cost of goods sold. Omit explanation. Assume the perpetual inventory system is used.
When a $40,000, 90-day, 9% interest-bearing note payable matures, total payment will amount to:
A) $40,900 B) $43,600 C) $900 D) $3,600
Equal monthly rental payments for a particular lease should be charged to rental expenses by the lessee in a capital lease.