Which of the following costs should be recorded as an expense?

Which of the following costs should be recorded as an expense? Administrative employee salaries Depreciation of manufacturing equipment Insurance for the factory building All of these are expenses. Budgeted sales in Acer Corporation over the next four months are given below: Twenty-five percent of the company’s sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern at follows: 50% of a month’s credit sales are collected In the month of tale. 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be: $103, 875 $98, 125 $136, 375 $119, 500 Which ratio would you use to examine a company’s ability to pay its debts in the short term? Earnings per share Acid test ratio Debt to assets ratio Return on equity Parsons Corporation plans to sell 18,000 units during August. If the company has 5, 500 units on hand at the start of the month, and plans to have 6,000 units on hand at the end of the month, how many units must be produced during the month? 24,000 18, 500 19, 500 17, 500 Select the incorrect statement regarding the quick ratio: The quick ratio is also known as the acid-test ratio. The quick ratio ignores some current assets that are less liquid than others. The quick ratio is a conservative variation of the current ratio. The quick ratio equals quick assets divided by total liabilities. Common methods of financial statement analysis include all of the following except Incremental analysis Horizontal analysis Vertical analysis Ratio analysis

Which of the following costs should be recorded as an expense? Administrative employee salaries Depreciation of manufacturing equipment Insurance for the factory building All of these are expenses. Budgeted sales in Acer Corporation over the next four months are given below: Twenty-five percent of the company’s sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern at follows: 50% of a month’s credit sales are collected In the month of tale. 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be: $103, 875 $98, 125 $136, 375 $119, 500 Which ratio would you use to examine a company’s ability to pay its debts in the short term? Earnings per share Acid test ratio Debt to assets ratio Return on equity Parsons Corporation plans to sell 18,000 units during August. If the company has 5, 500 units on hand at the start of the month, and plans to have 6,000 units on hand at the end of the month, how many units must be produced during the month? 24,000 18, 500 19, 500 17, 500 Select the incorrect statement regarding the quick ratio: The quick ratio is also known as the acid-test ratio. The quick ratio ignores some current assets that are less liquid than others. The quick ratio is a conservative variation of the current ratio. The quick ratio equals quick assets divided by total liabilities. Common methods of financial statement analysis include all of the following except Incremental analysis Horizontal analysis Vertical analysis Ratio analysis

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