On September 1, Capitol Maintenance Company contracted to provide monthly maintenance services for the next nine months at a rate of $2,400 per month. The client paid Capitol $21,600 on September 1. The maintenance services began on that date
Assuming Capitol records deferred revenues using the alternative treatment, what would be the adjusting entry recorded on December 31?
A) No entry is needed since revenue was recorded on September 1.
B) Debit Service Revenue and credit Unearned Revenue for $12,000
C) Debit Service Revenue and credit Unearned Revenue for $9,600
D) Debit Unearned Revenue and credit Service Revenue for $9,600
B
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The results of a least squares regression to separate the monthly utilities cost into its fixed and variable components were as follows: Y = 5,472 + .036 X X = the number of units produced R2 = .735 Which of the following statements is not true of the cost model?
a. Y represents the total semi-variable cost. b. The total monthly fixed utilities costs are $5,472. c. Y is referred to as the independent variable. d. The equation would be represented as a straight line on a graph.
When bonds are retired at maturity ________.
A) the bondholders are paid the face value plus the unamortized premium or less the unamortized discount B) the carrying value equals the face value plus the unamortized premium or less the unamortized discount C) the carrying value always equals the face value D) the entry to retire the bonds may include a gain or loss on retirement of bonds
Rebecca and Heather both visit a coffee shop on the same day and leave feedback about the shop on a popular online restaurant rating site. Rebecca leaves very negative feedback while Heather leaves very positive feedback. This is likely an example of what?
a. Poor customer service for both customers b. Typical service experienced in a food service setting c. Variation in service quality d. Customer warranty claims
Which of the following statements is NOT CORRECT?
A. Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate. B. Accruals are "free" in the sense that no explicit interest is paid on these funds. C. A conservative approach to working capital management will result in most if not all permanent assets being financed with long-term capital. D. The risk to a firm that borrows with short-term credit is usually greater than if it borrowed using long-term debt. This added risk stems from the greater variability of interest costs on short-term debt and possible difficulties with rolling over short-term debt. E. Bank loans generally carry a higher interest rate than commercial paper.