A company borrows $40,000 and issues a 3-year, 10% installment note with interest payable annually. The factor for the present value of an annuity at 10% for 3 years is 2.4869. The factor for the present value of a single sum at 10% for 3 years is 0.7513. The amount of the annual interest payment is $16,084.28.
Answer the following statement true (T) or false (F)
False
$40,000 × 10% = $4,000
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Depreciation is
a. an effort to achieve proper matching of the cost of operating assets. b. an accumulation of funds to replace the related plant asset. c. the difference between the original cost and salvage value of an asset. d. the cash allocated each period to maintain a plant asset.
Refer to the following diagram. Which of the following answers provides the best interpretation of the multiplicities for the association between the Cash Receipt and Cash classes?
A. Each order increases accounts receivable. B. Some cash receipts are not deposited into a bank account. C. Each cash receipt is deposited into one bank account. D. The company only has one bank account.
A cost that will not be affected by later decisions is termed an opportunity cost
Indicate whether the statement is true or false
______ is the process of making specific resources such as labor, equipment, and facilities to produce a product or deliver a service available.
A. Planning B. Scheduling C. Forecasting D. Production