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The asset turnover ratio is computed by 1. Under U.S. GAAP a. Property, plant, and equipment may not be revalued. b. Component depreciation is not required. c. Research and development costs are expensed as incurred. d. All of the choices are correct. 2. Which of the following statements concerning IFRS and U.S. GAAP is true? 3. A company decides to exchange its old machine and ¥770,000 cash for a new machine. The old m ...

Other / Other 16 Apr 2016

Compute the acquisition cost of the equipment Ex. 1 Kemp Company purchased factory equipment with an invoice price of €90,000. Other costs incurred were freight costs, €1,100; installation wiring and foundation, €2,200; material and labor costs in testing equipment, €700; oil lubricants and supplies to be used with equipment, €500; fire insurance policy covering equipment, €1,400. The equipment is est ...

Other / Other 16 Apr 2016

Chicago Furniture uses a variety of equipment 1. The cost of a purchased building includes all of the following except 2. A company purchased land for $70,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be recorded at 3. Which one of the following items is not ...

Other / Other 16 Apr 2016

Explain how to account for the disposal of a plant asset 1. Distinguish between revenue and capital expenditures, and explain the entries for each. 2. Explain how to account for the disposal of a plant asset . Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help ...

Other / Other 16 Apr 2016

Prepare the journal entries to record the following transactions Ex. 1 Compute the asset turnover ratio based on the following: Beginning total assets $ 800,000 Ending total assets 1,200,000 Net income 300,000 Net sales 2,200,000 Asset turnover ratio = $2,200,000  [($800,000 + $1,200,000)  2] = 2.2 times During 2011 Perez Corporation reported net sales of $4,000,000 and net income of $1,500,000. Its statemen ...

Other / Other 16 Apr 2016

Compute depreciation expense using the units-of-activity method BE 1 Hadicke Company purchased a delivery truck for $40,000 on January 1, 2011. The truck was assigned an estimated useful life of 5 years and has a residual value of $10,000. Compute depreciation expense using the double-declining-balance method for the years 2011 and 2012. BE 2 Hadicke Company purchased a delivery truck for $35,000 on January 1, 2011. The truck was ...

Other / Other 16 Apr 2016

Land is reported on the statement of financial position True or false: 1. All plant assets (fixed assets) must be depreciated for accounting purposes. 2. When purchasing land, the costs for clearing, draining, filling, and grading should be charged to a Land Improvements account. 3. When purchasing delivery equipment, sales taxes and motor vehicle licenses should be charged to Delivery Equipment. 4. Once cost is establis ...

Other / Other 16 Apr 2016

A gain or loss on disposal of a plant asset is determined by 1. IFRS allows companies to revalue plant assets to fair value. When an asset has increased in value, where is the account "Revaluation Surplus" reported? 2. Able Towing Company purchased a tow truck for $75,000 on January 1, 2010. It was originally depreciated on a straight-line basis over 10 years with an assumed residual value of $15,000. On December 31, 2012, before adju ...

Other / Other 16 Apr 2016

What entry would the company make BE 1 On January 2, 2011, Harlan Company purchased a patent for $38,000. The patent has an estimated useful life of 25 years and a 20-year legal life. What entry would the company make at December 31, 2011 to record amortization expense on the patent? BE 2 Using the following data for Notson, Inc., compute its asset turnover ratio. Notson, Inc. Net Income 2011 $ 123,000 Total Assets 12/31/11 2 ...

Other / Other 16 Apr 2016

Natural resources are generally shown on the statement of financial position 1. All of the following intangible assets are amortized except 2. Which of the following is not an intangible asset arising from a government grant? 3. Allocating the cost of an intangible asset is referred to as 4. A patent 5. Copyrights are granted by the government 6. Goodwill 7. In recording the acquisition cost of an entire business, ...

Other / Other 16 Apr 2016