Two Alternatives, Code-Named X and Y, Are Under Consideration at Guyer

question 179

Multiple Choice

Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below.

-What is the financial advantage (disadvantage) of Alternative Y over Alternative X?

• A) $132,000
• B) $119,000
• C) $145,000
• D) $26,000

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Definitions:

Cash

Physical form of currency, such as coins and banknotes, used to conduct transactions.

Rental Fees

Charges paid for the use of property or equipment, typically on a periodic basis like monthly or annually, under a leasing or rental agreement.

Revenue Account

An account that tracks the income a company generates from its normal business operations.

General Ledger

The General Ledger is the primary accounting record of a company that contains all the accounts needed to prepare financial statements, tracking all transactions.