Questions from Financial Accounting

Q: The word market as used in the lower of cost or market

The word market as used in the lower of cost or market generally means a. retail market price. b. Replacement cost. c. Retail market price. d. Liquidation price.

Q: Northern Corporation, the investment banking company, often has extra cash

Northern Corporation, the investment banking company, often has extra cash to invest. Suppose Northern buys 800 shares of Andy, Inc., stock at $54 per share. Assume Northern expects to hold the Andy s...

Q: The sum of (a) ending inventory and (b)

The sum of (a) ending inventory and (b) cost of goods sold is a. beginning inventory . b. goods available. c. net purchases. d. gross profit.

Q: The following data come from the inventory records of Draper Company:

The following data come from the inventory records of Draper Company: Based on these facts, the gross profit for Draper Company is a. $130,000. b. $163,000. c. $134,000. d. Some other amount.

Q: A capital expenditure a. adds to an asset.

A capital expenditure a. adds to an asset. b. is expensed immediately . c. is a credit like capital (owners equity). d. records additional capital.

Q: Which of the following items should be accounted for as a capital

Which of the following items should be accounted for as a capital expenditure? a. The monthly rental cost of an office building b. Taxes paid in conjunction with the purchase of office equipment c....

Q: Suppose you buy land for $2,900,000 and

Suppose you buy land for $2,900,000 and spend $1,200,000 to develop the property . You then divide the land into lots as follows: How much did each hilltop lot cost you? a. $246,000 b. $175,715 c. $...

Q: Which statement about depreciation is false? a. Depreciation should

Which statement about depreciation is false? a. Depreciation should not be recorded in years that the market value of the asset has increased. b. Depreciation is a process of allocating the cost of a...

Q: Boston Corporation acquired a machine for $33,000 and has

Boston Corporation acquired a machine for $33,000 and has recorded depreciation for two years using the straight-line method over a five-year life and $6,000 residual value. At the start of the third...

Q: Boston Corporation acquired a machine for $33,000 and has

Boston Corporation acquired a machine for $33,000 and has recorded depreciation for two years using the straight-line method over a five-year life and $6,000 residual value. At the start of the third...