77.Total asset turnover is used to evaluate:
A.The efficient 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.
78.A total asset turnover ratio of 3.5 indicates that:
A.For every $1 in sales, the firm acquired $3.50 in assets during the period.
B.For every $1 in assets, the firm produced $3.50 in net sales during the period.
C.For every $1 in assets, the firm earned gross profit of $3.50 during the period.
D.For every $1 in assets, the firm earned $3.50 in net income.
E.For every $1 in assets, the firm paid $3.50 in expenses during the period.
79.The calculation of total asset turnover is:
A.Gross profit divided by average total assets.
B.Average total assets divided by gross profit.
C.Net sales divided by average total assets.
D.Average total assets multiplied by net sales.
E.Net assets multiplied by total assets.
80.A company had average total assets of $887,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company’s total asset turnover equals:
A.0.81.
B.0.89.
C.1.09.
D.1.13.
E.1.23.
81.Spears Co. had net sales of $35,400 million. Its average total assets for the period were $14,700 million. Spears’ total asset turnover equals:
A.0.42.
B.0.35.
C.1.48.
D.2.41.
E.3.54.
82.Land improvements are:
A.Assets that increase the usefulness of land, and like land, are not depreciated.
B.Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation.
C.Included in the cost of the land account.
D.Expensed in the period incurred.
E.Also called basket purchases.
83.Which of the following is not classified as plant assets?
A.Land.
B.Land improvements.
C.Buildings.
D.Machinery and equipment.
E.Patent.
84.The cost of land would not include:
A.Purchase price.
B.Cost of parking lot lighting.
C.Costs of removing existing structures.
D.Fees for insuring the title.
E.Government assessments.
85.A company paid $150,000, plus a 7% commission and $5,000 in closing costs for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. What should be the allocation of this property’s costs in the company’s accounting records?
A.Land $75,000; Land Improvements, $30,000; Building, $45,000.
B.Land $75,000; Land Improvements, $30,800; Building, $46,200.
C.Land $82,750; Land Improvements, $33,100; Building, $49,650.
D.Land $80,250; Land Improvements, $32,100; Building, $48,150.
E.Land $77,500; Land Improvements; $31,000; Building; $46,500.
86.Merchant Company purchased property for a building site. The costs associated with the property were:
Purchase price$185,000
Real estate commissions15,000
Legal fees700
Expenses of clearing the land2,000
Expenses to remove old building4,000
What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
A.$187,700 to Land; $19,000 to Building.
B.$200,700 to Land; $6,000 to Building.
C.$200,000 to Land; $6,700 to Building.
D.$185,000 to Land; $21,700 to Building.
E.$206,700 to Land; $0 to Building.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more