For the lessee, effects of classifying a lease as a capital lease instead of an operating lease typically include decreasing the current ratio and increasing the debt-to-equity ratio. ?
Indicate whether the statement is true or false
True
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The aging of accounts receivable method focuses on estimating the ending balance to be reported in the Allowance for Doubtful Accounts, whereas the percentage of credit sales method focuses on estimating Bad Debt Expense for the period.
Answer the following statement true (T) or false (F)
A company sells two products--J and K. The sales mix is expected to be $3 of sales of Product K for every $1 of sales of Product J. Product J has a contribution margin ratio of 40% whereas Product K has a contribution margin ratio of 50%. Annual fixed expenses are expected to be $120,000. The overall break-even point for the company in dollar sales is expected to be closest to:
A. $252,632 B. $200,000 C. $196,000 D. $263,420
To display account numbers in the Chart of Accounts, select:
A. Company > Preferences B. Edit > Options C. Company > Accounts D. Edit > Preferences
A good is tangible if it:
a. costs more than $500 b. can be seen, but not necessarily touched c. can be found in more than one state d. is a service that anyone can perform without special training e. none of the other choices are correct