A doctor’s office is considering the purchase of a new piece of equipment. The equipment costs $25,000. The procedure performed with the new equipment will be billed to patients at $200. The doctor’s office estimates that the cost of materials and training for the new equipment will be approximately $75 per procedure. What is the break-even point for this purchase?
a. 1,200 procedures
b. 1,000 procedures
c. 200 procedures
d. Cannot be determined from the information given
c. 200 procedures
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A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500 . What is theamount of the gain or loss on disposal of the fixed asset?
a. $2,000 loss b. $2,000 gain c. $1,500 loss d. $3,500 gain
Which of the following is/are true?
a. The seller measures revenue as the amount of cash, or the cash-equivalent value of other assets, that it receives from customers. b. The seller measures revenue amounts as the exchange price between buyer and seller at the time of sale. c. If the firm has not performed all of its obligations, it may make adjustments in the form of sales discounts and allowances. d. If the firm has not performed all of its obligations, it may make adjustments in the form of sales returns. e. all of the above are true
The size of the firm should dictate the scope of the sales training program
Indicate whether the statement is true or false
The first step in the journalizing and posting process is to ________
A) post the journal entry to the ledger B) identify the accounts involved and the account type C) decide whether each account increases or decreases D) record the transaction in the journal