Ginnie, Inc A)I
B)II
C)III
D)IV

question 36

Multiple Choice

Ginnie, Inc.entered into a five-year capital lease on December 31, 2010.This lease requires five minimum annual lease payments due on December 31 of each year.The first minimum payment was paid on December 31, 2010.This payment included which of the following? $\begin{array}{ll}&\text { Interest Expense}&\text { Lease Liability}\\\text {I.}&\text { No } & \text { Yes } \\\text {II.}&\text { Yes } & \text { No } \\\text {III.}&\text { Yes } & \text { Yes } \\\text {IV.}&\text { No } & \text { No }\end{array}$

• A)I
• B)II
• C)III
• D)IV

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Definitions:

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service costing.

Materials Handling Cost

The expenses associated with moving, protecting, and storing goods within a warehouse or manufacturing facility.

Material Moves

Refers to the process or cost associated with moving raw materials and parts through a manufacturing or production facility.

Modular Homes

Prefabricated homes that are constructed in modules or sections in a factory setting and then transported to a building site where they are assembled.