The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:
A) inventory pooling control.
B) virtual distribution.
C) electronic inventory control.
D) vendor-managed inventories.
D
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Which of the following would be deducted from the balance per books on a bank reconciliation?
a. Notes collected by the bank b. Deposits in transit c. Service charges d. Outstanding checks
Cardinal Pharmacy has purchased a small auto for delivery of prescriptions. The auto cost $28,000 and will be usable for four years. Delivery of prescriptions (which the pharmacy has never done before) should increase revenues by at least $40,000 per year. The cost of these prescriptions will be about $30,000 per year. The pharmacy depreciates all assets by the straight-line method. (Ignore income taxes.)Required:a. Compute the payback period on the new auto.b. Compute the simple rate of return of the new auto.
What will be an ideal response?
For manufacturing firms, the cost of completed products remains on the balance sheet as __________ assets until the firm sells the products; upon sale, the cost of the assets becomes a cost of goods sold expense
a. Direct Materials Inventory b. Work-in Progress Inventory c. Finished Goods Inventory d. Cost of Products Ready for Sale e. none of the above
When a company receives an interest-bearing note receivable, it will
A) debit Notes Receivable for the maturity value of the note. B) debit Notes Receivable for the face value of the note. C) credit Notes Receivable for the maturity value of the note. D) credit Notes Receivable for the face value of the note.