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1. The company ABC, Inc. placed a fence. In addition, he paid experts to make a garden around the building. What is the accounting treatment
1. The company ABC, Inc. placed a fence. In addition, he paid experts to make a garden around the building. What is the accounting treatment that should be given to the cost of the fence and the garden? A. Both costs must be included in the cost of the building. B. The cost of the garden must be included in the cost of the land and that of paving with that of the building. C. Both costs must be included in the cost of the land. D. Both costs must be included as an asset apart from the land and the building called Land Improvements. 2. The account for returns and concessions on the merchandise sold: a. It is a vents counter account and its normal balance is debited. b. It decreases the equity of shareholders and increases debts. c. Decreases assets and increases debts. d. Increases the assets and assets of shareholders. 3. In an inflationary economic environment (prices are rising) the inventory balance (final inventory) will probably be higher if the Method of: a. First to enter, first to leave ("FIFO"). b. Specific identification. c. Last to enter, first to leave ("LIFO"). d. Moving average 4. Company buys merchandise for $1,000 under terms 2/10, N/30 and $50 is paid for transportation. If the purchase is paid for within the period of Discount, what is the total cost of the purchased merchandise? 5. The receivable documents ("notes receivables") represent: a. A short-term or long-term asset and a more formal document than receivable accounts. b. Long-term asset and claim to insurance companies for damages suffered in the company. c. All the answers are correct. d. A short-term asset and a contributory reimbursement.
1. The company ABC, Inc. placed a fence. In addition, he paid experts to make a garden around the building. What is the accounting treatment that should be given to the cost of the fence and the garden?
A. Both costs must be included in the cost of the building.
B. The cost of the garden must be included in the cost of the land and that of paving with that of the building.
C. Both costs must be included in the cost of the land.
D. Both costs must be included as an asset apart from the land and the building called Land Improvements.
2. The account for returns and concessions on the merchandise sold:
a. It is a vents counter account and its normal balance is debited.
b. It decreases the equity of shareholders and increases debts.
c. Decreases assets and increases debts.
d. Increases the assets and assets of shareholders.
3. In an inflationary economic environment (prices are rising) the inventory balance (final inventory) will probably be higher if the
Method of:
a. First to enter, first to leave ("FIFO").
b. Specific identification.
c. Last to enter, first to leave ("LIFO").
d. Moving average
4. Company buys merchandise for $1,000 under terms 2/10, N/30 and $50 is paid for transportation. If the purchase is paid for within the period of Discount, what is the total cost of the purchased merchandise?
5. The receivable documents ("notes receivables") represent:
a. A short-term or long-term asset and a more formal document than receivable accounts.
b. Long-term asset and claim to insurance companies for damages suffered in the company.
c. All the answers are correct.
d. A short-term asset and a contributory reimbursement.
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