Use of a voucher system and a check verifying system complies with the objectivity principle. Only cash, available for sale securities and receivables are the assets included in computing the Current Ratio. The general purpose financial reports are the income statement, the balance sheet, statement of cash flows and the general ledger. A bond issued at 95% (a discount) will results in the bond interest market or effective rate being less than the contract or coupon rate. A piece of land acquired in exchanged for a 3 year, non-interest bearing note would be recorded at the faced value of the note. If a firm applies the Completed Contract Method for a 3 year long term contract, then the truth will not show any gross profit until the end of the 3rd year. Computing the lower of cost or net realizable value requires that NPV be determined by Sales minus cost of selling. Intra tax Allocation is demonstrated by off setting Discontinued Operations by Taxes as well as off setting taxes for Income from Continuing Operations? Complete as directed, Complete on Scantron Azz Inc, financed the purchase of a machine by making payments of $5,000 at the end of each the net 5 years. Assuming an 8% rate of interest, what is the cost of the new machine for Azz, Inc. a. $7, 396.65 b. $19, 963.55 c. $25,000.00 d. $29, 333.00 Before adjustments, Allowance for bad debts has a debit balance of $2,000; what will be the adjust entry amount if the new estimate is 5% of receivables of $550,000: a. $27, 400 b. $27, 500 c. $29, 500 d. $25, 500 e. Neither is correct