Under the rule of 78s, loans for a year or less usually do not allow for a finance charge rebate.

a. True

b. False

Dinkins company purchased a truck that cost $46,000. the company expected to drive the truck 100,000 miles over its 5-year useful life, and the truck had an estimated salvage value of $8,000.

In recording its acquisition of Lambda, Inc., Omega, Inc. properly recognized a contingent consideration liability of $28,000 associated with a possible payment based on a target amount of post-combination cash flow from operations.

A machine is available 10 hours a day. Each part takes 90 minutes to fabricate and 10 minutes to setup.

Meir, Benson and Lau are partners and share income and loss in a 3:2:5 ratio. The partnership's capital balances are as follows: Meir, $168,000; Benson, $138,000; and Lau, $294,000.

The return of merchandise to the supplier for credit using the perpetual inventory system would include a: A. debit to Accounts Payable and a credit to Merchandise Inventory. B. debit to Accounts Receivable and a credit to Accounts Payable. C.

Porite Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash.

You have $ 400 and a bank is offering 4.0 % interest on deposits. If you deposit the money in the bank, how much will you have in one year?

A promissory note a. cannot be factored to another party. b. has the party to whom the money is due as the maker. c. may be used to settle an accounts receivable. d. is not a formal credit instrument.

Davison Company determined that the book basis of its net accounts receivable was less than thetax basis of its net accounts receivable by $800,000 due to a difference in the allowance for baddebts account.

Why do you think government bonds usually have a low risk of default?