1.All sales regardless of whether they are in the form of cash or credit should...
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Finance
1.All sales regardless of whether they are in the form of cash or credit should be recognized on financial statements.
Select one:
True
False
2.
The Johnson Company bought a truck costing $60,000 two years ago. The truck's estimated life was six years at the time of purchase. It was accounted for by using straight line depreciation with zero salvage value. If the truck was sold yesterday for $65,000, what is the capital gain that must be reported on the sale of the truck?
Select one:
a.
$25,000
b.
$20,000
c.
$40,000
d.
$30,000
e.
$35,000
3.
If their bonuses are based on net income, managers may:
Select one:
a.
postpone dividend payments.
b.
hold more inventory.
c.
postpone writing off bad debts.
d.
increase depreciation.
Answer & Explanation
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