When a new partner is admitted to a partnership, there should be a(n)
a. increase in the total assets of the partnership
b. new capital account added to the ledger for the new partner
c. increase in the total owner's equity of the partnership
d. debit amount to the partner's capital account for the cash received by the current partner
b
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Under the cost method, when treasury stock is purchased by the corporation, the par value and the price at which the stock was originally issued are important
a. True b. False Indicate whether the statement is true or false
The challenge in designing an activity-based costing system is to identify all of the activities that explain the variation in overhead costs.
Answer the following statement true (T) or false (F)
The cost of workers' compensation insurance for the employer does not depend on
a. the number of employees; b. the riskiness of the jobs the employees perform; c. the company's accident history; d. the amount of FICA, FUTA, and SUTA taxes due; e. any of these.
If a business had a capacity of $10,000,000 of sales, actual sales of $6,000,000, break-even sales of $4,500,000, fixed costs of $1,800,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales?
A) 25% B) 18% C) 33.3% D) 15%