A loss on disposal of fixed assets is recognized when:
a. the proceeds from sale exceeds the net book value of the fixed assets.
b. the accumulated depreciation is lesser than the depreciation cost.
c. the depreciation cost is lesser than the accumulated depreciation.
d. the net book value of the fixed assets exceeds the proceeds.
a
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A company sells a particular product only in the last month of its fiscal year. The company uses commission agents for such sales and pays them 6% of their net sales 30 days after the sales are made. The agents' sales were $10 million. Experience indicates that 10% of the sales are usually not collected and 2% are returned in the first month of the new year. The auditor would expect the year-end balance in the accrued commissions payable account to be:
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At the start of football season, the ticket office gets busy the day before the first game. Customers arrive at the rate of four every ten minutes. A ticket seller can service a customer in four minutes
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