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Burka [1]
3 years ago
7

The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing t

he expense of using the assets, is called: Multiple Choice The expense recognition (matching) principle. A contra account. Depreciation expense. An accrued account. Accumulated depreciation.
Business
1 answer:
Alex787 [66]3 years ago
8 0

Answer:

Option B Depreciation expense

Explanation:

The allocation of cost of the plant and equipment for the period being used is the concept of depreciation and is a period cost because when the asset is purchased its value decreases gradually with time which means some of the machinery value would be deminish during the year depending upon the technological factors, life of the equipment, etc. So the period cost will arise regardless of that we either use the asset or not which is the definition of period cost which in this case is depreciation cost and the allocation of cost of plant and equipment over its useful life is also depreciation cost.

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ikadub [295]

Answer:$4,500---B, ie the 2nd option

Explanation:

From April to December we have 9 months

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Interest Expense = 50000 x 12% x 9/12 =

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8 0
2 years ago
On December 29, 2005, BJ Co. sold an equity security investment that had been purchased on January 4, 2004. BJ owned no other ma
sineoko [7]

Answer:

AFS 2004 market price decline exceeded 2005 market price recovery

No No

The security cannot be classified as available-for-sale because the unrealized gains and losses are recognized in the Income Statement. Unrealized gains and losses on available-for-sale securities are recognized in owners' equity, not earnings.

The second part of the question is somewhat ambiguous. The 2004 price decline could exceed or be exceeded by the 2005 price recovery. The loss in the first year is not related in amount and does not constrain the realized gain in the second year.

The way to answer the question is to read the right column heading as implying that the earlier price decline must exceed the later price recovery. With that interpretation, the correct answer is no.

For example, assume a cost of $10 and a market value of $4 at the end of the first year. An unrealized loss of $6 is recognized in earnings. During the second year, the security is sold for $12. A realized gain of $8 is recognized-the increase in the market value from the end of the first year to the sale in the second year. Thus, the market decline in the first year did not exceed the recovery in year two. (It could have exceeded the recovery in year two but there is no requirement that it must.)

Explanation:

3 0
2 years ago
The majority of products that we purchase in America are produced where?
const2013 [10]

The answer is: by cheap foreign labor

Currently, most of the corporations that operates in america manufacture their products in countries such as China, india, indonesia, phillipines, or Eastern European countries.

People who live in those countries typically have lower standard of living. Because of this, they can agree in receiving salary that are considerably lower compared to the minimum wage in united states.

5 0
2 years ago
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When performing the "Incremental ROR analysis" of multiple mutually exclusive alternatives, the first step is to order all the a
Delvig [45]

Answer:

True

Explanation:

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4 0
3 years ago
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kkurt [141]
Bonds are a form of a debt captial
3 0
3 years ago
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