Engineering Econ Final

From the list of accounts determine the amount that would be properly classified as property, plant, and equipment. Land Used in Business: $100,000 Machinery Leased from Others (no liability has been recorded): $60,000 Accumulated Depreciation: ($80,000) Inventories: $124,000 Land Held for Future Plant Site: $40,000 Building: $200,000 Investment in Stock of Construction Company: $50,000 a) $220,000 b) $360,000 c) $260, 000 d) $280,000

a) $220,000 (Sum of leased machinery, depreciation (negative), Land held, and building)

The following are account titles for liabilities except for: a) Advances to suppliers. b) Advances from tenants. c) Rent received in advance. d) Advances from customers.

a) Advances to suppliers.

Gross Domestic Product can be measured as the sum of: a) Consumption, investment government purchases, and net exports. b) Consumption, transfer payments, wages, and profits. c) Investment, wages, profit, and intermediate production. d) Final goods and services, intermediate goods, transfer payments, and rent. e) Net National Product, Gross National Product, and Disposable personal income.

a) Consumption, investment government purchases, and net exports.

What account below would not be found on the balance sheet of a corporation? a) Perrero, Capital. b) Retainment Earnings. c) Investment in Ladner Co. Stock. d) Premium on Common Stock.

a) Perrero, Capital.

The value of plant and equipment worn out in the process of manufacturing goods and services is measured by: a) Consumption b) Depreciation c) Net National Product. d) Investment. e) Intermediate production.

b) Depreciation.

U.S. Gross Domestic Product (in contrast to Gross National Product) measures the production and income of: a) Americans and their factories no matter where they are located in the world. b) People and factories located within the borders of the United States. c) The domestic service sector only. d) The domestic manufacturing sector only. e) None of the above.

b) People and factories located within the borders of the United States.

The balance in all asset accounts combined is $300,000 on December 1st. During December the following transaction took place: Purchase of $30,000 of inventory for cash. Purchase of $45,000 of machinery on account. Retirement of $60,000 in bonds with cash. What is the combined December 31st balance in the asset accounts? a) $240,000 b) $345,000 c) $315,000 d) $285,000

d) $285,000

Which of the following would be excluded from 1989 GDP? The sale of: a) a 1989 Honda made in Tennessee. b) A haircut. c) A realtor's services. d) A home built in 1988 and first sold in 1989. e) All of the above should be counted in 1989 GDP.

d) A home built in 1988 and first sold in 1989.

The balance sheet reflects the application of various valuation methods. Which of the methods listed below may be used on a balance sheet that follows generally accepted accounting principles. a) Acquisition cost. b) Current cash-equivalent value. c) Present value of future cash flows. d) All of the above.

d) All of the above.

An example of a transferable payment is: a) Wages. b) Profit. c) Rent. d) Government Purchases. e) Unemployment Benefits

e) Unemployment benefits.