On August 28, 2016, Saturn Drilling Services purchased a machine with a contract price of $400,000 and cash terms of 2/10, n/30. The company paid $8,000 in transportation costs and $8,000 for installation. Sales taxes of $22,000 were paid on the invoice amount. The machine should be recorded as a plant asset in the amount of
A) $400,000.
B) $422,000.
C) $428,000.
D) $430,000.
D
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In a manufacturing environment, direct labor costs initially flow
A) into the Materials Inventory account. B) into the Cost of Goods Sold account. C) into the Work in Process Inventory account. D) into the Finished Goods Inventory account.
In a typical P.E.S.T analysis, which of the following examples is considered a political trend
affecting the market? A) increasing the interest rates on home and automobile loans issued by banks B) allowing incentives for automobile owners for trading their old gas-based cars for more fuel-efficient electric cars C) placing higher import tariffs on goods manufactured by a company based in a hostile country D) introducing flexible work schedules for employees with families and those who commute greater distances
The Auditing Standards Board's guidance on matters such as the purpose of an audit, the premise of an audit, and auditor personal responsibilities is included in:
A. The Code of Professional Conduct. B. Principles Underlying an Audit Conducted in Accordance with GAAS. C. Accounting Series Releases. D. The professional responsibilities section of the generally accepted auditing standards.
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