Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:1) issued stock for $70,000 2) borrowed $40,000 from its bank 3) provided consulting services for $68,000 cash 4) paid back $30,000 of the bank loan 5) paid rent expense for $16,500 6) purchased equipment for $27,000 cash 7) paid $4500 dividends to stockholders 8) paid employees' salaries of $36,000 What is Yowell's net income for Year 1?
A. $4500
B. $65,500
C. $30,000
D. $15,500
Answer: D
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Customers are likely to put up with poor-quality products only if your organization is
A. underperforming in innovation. B. using computerized customer service. C. the only one of its kind. D. in a very competitive industry. E. lacking strong environmental policies.
When accounting for uncollectible accounts,
A) if the percentage of sales method is in use, any existing balance in the Allowance for Doubtful Accounts is the amount used in the adjusting entry. B) in current accounting practice, the most frequently used method of recognizing bad debts is the direct write-off method. C) writing off a specific receivable does not reduce the current ratio if the percentage of ending accounts receivable method is in use. D) an aging analysis results in reporting accounts receivable at their historical cost on the balance sheet.
Rotan Company purchased a van on January 1, 2018, for $810,000. Estimated life of the van was five years, and its estimated residual value was $98,000. Rotan uses the straight-line method of depreciation. At the beginning of 2020, the company revised the total estimated life of the asset from five years to six years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for 2020.
A) $142,400 B) $131,300 C) $106,800 D) $71,200
Maximizing the efficiency of the manufacturing or product development process to minimize costs is referred to as
A. managerial skill. B. business superiority. C. operational excellence. D. maintenance strategy. E. differentiation.