a . |
$ 325,000 |
b . |
$ 370,000 |
c . |
$ 275,000 |
d . |
$ 245,000 |
3 . On January 1 , a business exchanged a plant asset with a cost of $ 18,000 and accumulated depreciation of $ 16,500 for a similar asset that had a list price of $ 23,000 . The business received a trade-in allowance of $ 2,100 on the old plant asset . What was the result of the exchange ?
a . A $ 600 gain on the disposal of a plant asset . b . A $ 1,000 unrecognized gain on the exchange of a plant asset . c . A cost basis of $ 22,400 for the new plant asset d . A cost basis of $ 23,600 for the new plant asset
4 . Which one of the following is not an objective of a system of internal controls ? a . Safeguard company assets b . Overstate liabilities in order to be conservative c . Enhance the accuracy and reliability of accounting records d . Reduce the risks of errors
5 . A company ’ s past experience indicates that 60 % of its credit sales are collected in the month of sale , 30 % in the next month , and 5 % in the second month after the sale ; the remainder is never collected . Budgeted credit sales were : July $ 120,000 August 72,000 September 180,000 The cash inflow in the month of September is expected to be a . $ 135,600 b . $ 102,600 c . $ 108,000 d . $ 129,600