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Question 19 Inadequacy refers to: Select one: a. The insufficient capacity of a company's plant assets to meet the company's growing production demands.b. An asset that is worn out.c. An asset that is no longer useful in producing goods and services.d. The condition where the salvage value is too small to replace the asset.e. The condition where the asset's salvage value is less than its cost.The correct answer is: The insufficient capacity of a company's plant assets to meet the company's growing production demands.
Question 20 A company had a bulldozer destroyed by fire. The bulldozer originally cost $125,000 with accumulated depreciation of $60,000. The proceeds from the insurance company were $90,000. The company should recognize: Question 21 Toys "R" Us had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory turnover of $1,965 million. Its days' sales in inventory equals:
Question 22 Costs included in the Merchandise Inventory account can include: Question 23 Revenue expenditures are additional costs of plant assets that materially increase the assets' life or productive capabilities. Select one: TrueFalseThe correct answer is 'False'. Question 24 The reasoning behind the retail inventory method is that if we can get a good estimate of the cost-to-retail ratio, we can multiply ending inventory at retail by this ratio to estimate ending inventory at cost.
Question 25 The accounts receivable turnover is calculated by: