Answer:
1. Small expenditures which primarily benefit the current period. REVENUE EXPENDITURES
2. Cost less accumulated depreciation. BOOK VALUE
3. An accelerated depreciation method used for financial statement purposes. DOUBLE DECLINING BALANCE METHOD
4. Tangible resources that are used in operations and are not intended for resale. PLANT ASSETS
5. Equal amount of depreciation each period. STRAIGHT LINE METHOD
6. Expected cash value of the asset at the end of its useful life. SALVAGE VALUE
7. Process of allocating the cost of equipment over its service life. DEPRECIATION
8. Material expenditures that increase an asset's operating efficiency, productive capacity, or useful life CAPITAL EXPENDITURES
9. An accelerated depreciation method used for tax purposes. MACRS
10. Useful life is expressed in terms of units of production or expected use. UNITS OF ACTIVITY METHOD
Explanation:
Answer:
c. Work in Process--Department 2 375,000 Work in Process--Department 1 375,000
Explanation:
The journal entry is shown below:
Work in Process - Department 2 $375,000 ($100,000 + $125,000 + $150,000)
To Work in Proces - Department 1 $375,000
(Being the flow of cost from Dept 1 to Dept 2 is recorded)
Here the work in process for dept 2 is debited as it increased the assets and credited the work in process for dept 2 as it decreased the assets
Answer:
C. transferred in
Explanation:
The process costying will have a beginnign inventory and started units which come fro mthe raw materials inventory or another process. When they come from another process are called transfer-in
This figure along with the beginning inventory total the accounted for.
Then this can be either completed or keep as Work in process.
when completed are trasnferred-out
this both figures will stand for the cost to accoung for
Answer:
A) It will decrease prior service cost and, as prior service cost is amortized, will decrease pension expense.
Explanation:
<em>Prior service cost</em> is the cost of additional benefits that an employee is entitled to receive for service rendered over a period of time due to an amendment in pension plan.
<em>Prior service cost is amortized</em> by adding equal amount to each future period of service of each employee that are expected to receive the benefits of the amended pension plan.
Therefore,due to the extended retirement age, the prior service cost will increase and as the service cost is amortized, it will decrease the pension expenses of the company.
Answer:
The correct answer is letter "D": Like money stored in a cookie jar, overstated revenues represent a stash of accounting earnings that can be used to bolster the perceived performance of the company in the future.
Explanation:
The secret reserve is a portion of the assets of a company that the organization <em>overstated </em>or <em>understated</em>. This is usually done when a company wants to make believe its competitors their financial statements are better than what they are. Though, those hidden assets can help a company to improve from an adverse situation if given at a certain period. That is the reason why secret reserves are compared to "<em>cookie jars</em>" where the money is saved as a precaution to face hardship.
