Equal monthly rental payments for a particular lease should be charged to rental expenses by the lessee in a capital lease.
Ans: False
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Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $68,000 and $3450, respectively. During Year 2, Allegheny wrote off $6300 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $5400. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement?
A. $1950 B. $5400 C. $6300 D. $8250
The ________ is a nonhierarchical method that allows for later reassignment of objects to clusters to optimize an overall criterion
A) optimizing partitioning method B) sequential threshold method C) parallel threshold method D) Ward's procedure
Which of the following is NOT acceptable in estimating uncollectible accounts receivable under GAAP?
a. The estimate of uncollectible accounts is based on a percentage of sales for the period. b. The estimate of uncollectible accounts is based on a percentage of the accounts receivable balance at the end of a period. c. The estimate of uncollectible accounts is based on an aging schedule. d. No estimate of uncollectible accounts is made; accounts are written off when it is determined they cannot be collected.
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
A. A project's regular IRR is found by compounding the cash inflows at the cost of capital to find the present value (PV), then discounting the TV to find the IRR. B. If a project's IRR is smaller than the cost of capital, then its NPV will be positive. C. A project's IRR is the discount rate that causes the PV of the inflows to equal the project's cost. D. If a project's IRR is positive, then its NPV must also be positive. E. A project's regular IRR is found by compounding the initial cost at the cost of capital to find the terminal value (TV), then discounting the TV at the cost of capital.