The Smith Corp

question 149

Multiple Choice

The Smith Corp.began business this year and entered into the following transactions during the year.The company issued common stock in exchange for cash of $80,000 from stockholders,borrowed $40,000 from a bank,bought $12,000 of inventory on account,and purchased $32,000 of equipment by paying $12,000 in cash and issuing a note for the remainder.What is the amount of total assets to be reported on the balance sheet at the end of the year?

• A)$104,000
• B)$120,000
• C)$128,000
• D)$152,000

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Definitions:

Time-Driven Activity-Based Costing

Time-driven activity-based costing is an approach to costing that assigns resource costs directly to products or services based on the actual time spent on activities, improving accuracy and simplifying the costing process.

Customer Service Department

A division of a business dedicated to addressing customer inquiries, complaints, and providing assistance.

Customer Cost Analysis

The process of evaluating all costs involved in acquiring and maintaining customers, often used to assess the profitability of customer relationships.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products or services based on the time resources are utilized and the cost of those resources.