Leaming Obiective: Ch7-P3 bought $5,000 worth of merchandise from Techcom and Paoli Pizza TechCon's journal entry to record the sales portion of the transaction is: A) signed a 90day, 10% promissory note for the $5,000 Accounts Receivable ,000 5,000 B) Notes Receivable 5,000 5,000 C) D) Sales E) Sales, Accounts Receivable 5,125 5,125 Notes Receivable 5,125 5,125 Notes Receivable Interest Receivable 5,000 125 5,125 Learning Obiestive: Ch8-C2 49. Inadequacy refers to A The insufficient capacity of a company's plant assets to met the company's growing production demanda. 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 50. Obsolescence: A) Occurs when an asset is at the end of its useful life. B) Refers to a plant asset that is no longer useful in producing goods and services. C) Refers to the insufficient capacity D) Occurs when an asset's salvage value is less than its replacement cost E) Does not affeet plant assets. of a company's plant assets to meet the company's productive demands. useful life of S years, but after 3 complete years, it was decided that the original estimate ining cost to be depreciated should be allocated over the remaining 51. A machine originally had an estimated should have been 10 years. At that point the rema A) 2 years B) 5 years. C) 7 years D) 8 years. E) 10 years Learning Objective: Chs-A2 Total asset turnover is used to evaluate: A) The efficiency of management's use of assets to generate sales. B) The necessity for asset replacement C) The number of times operating assets were sold during the year D) The cash flows used to acquire assets E) The relation between asset cost and book value. 52. Learning Obiective: Chs-P4 53. A company's old machine that cost $40,000 and had accumulated depreciation of $30,000 was traded in on a new machine of like purpose having an estimated 20-year life with an invoice price of $50,000. The company also paid $43,000 cash, along w its old machine to acquire the new machine. The new machine should be recorded at: A) $40,000. B) $47,000 C) $50,000. D) $53,000. E) $10,000