The following relates to a proposed equipment purchase: Cost$144,000 Salvage value$4,000 Estimated useful life 4years Annual net cash flows$46,100 Depreciation methodStraight-line The annual average investment amount used to calculate the accounting rate of return is:
A. $37,000
B. $72,000
C. $74,000
D. $48,950
E. $70,000
Answer: C
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A legislature cannot change a common law rule by enacting a statute.
Answer the following statement true (T) or false (F)
A company has a petty cash fund amount of $300. When replenished, it has petty cash tickets of $30 for gas expense, $33 for postage expense, $16 for supplies expense, and $12 for miscellaneous expenses. Assume the cash balance is not over or short. In the journal entry, Cash would be credited for ________.
A) $91 B) $75 C) $63 D) $79
What is the total of manufacturing costs incurred by Fire Cat, Inc. during the year?
Fire Cat, Inc. selected cost data for the year are shown below:
A) $148,000
B) $143,000
C) $22,900
D) $38,100
Which of the following is/are true regarding the Raw Materials Inventory account?
a. The Raw Materials Inventory account includes the cost of raw materials purchased but not yet transferred to the factory floor. b. The manufacturing firm records purchases of raw materials as debits to the Raw Materials Inventory account. c. When the manufacturer physically transfers raw materials to the factory floor, it also transfers the cost of the raw materials from the Raw Materials Inventory account to the Work-in-Process Inventory account. d. When the manufacturer physically transfers raw materials to the factory floor, it records this transfer as a credit to the Raw Materials Inventory account for the cost of the raw materials transferred and a debit to the Work in Process Inventory account. e. all of the above