Multiple choice - 5 Essay Questions 1 . ??Do (s)(Points 20...

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5 Essay Questions 1.  TCO 1 – Explain the generation of the Statement of Cash Flows.  Where does the information come  from and how is it structured?  Who uses this report and what information are they interested in?  Do  provide the textbook page(s) used to develop your answer. (Points: 20) 2. (TCO6) ABC, Inc. purchased new machinery in order to improve its production process. Classify each  of the following expenditures incurred last year as a capital expenditure (CE) or an immediate expense  (IE) : a. $42,000 purchase price b. $2,520 sales tax paid on the purchase price c. $4,000 transportation costs  d. $1,850 installation e. $385 training of personnel for initial operation of the machinery f. $6,855 wages paid to employees that operate the machinery during production g. $280 periodic lubrication after the machinery is placed in service. h. $150 ordinary repairs to maintain the machinery in working order
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This note was uploaded on 07/16/2011 for the course ACCT 212 taught by Professor Song during the Spring '11 term at DeVry Kansas City.

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Multiple choice - 5 Essay Questions 1 . ??Do (s)(Points 20...

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