You Find a Company with the Flowing Balance Sheet Items

question 21

Multiple Choice

You find a company with the flowing balance sheet items: Cash = $900; Shareholder equity = $575; Marketable securities = $275; Current liabilities = $950, Long-term liabilities = $1,340. What are fixed assets for the company?

• A) $1,690
• B) $1,410
• C) $1,050
• D) $1,260
• E) $1,530

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating factory overhead costs to products.

Standard Cost

A predetermined cost of manufacturing a product or performing a service, used as a benchmark to measure performance.

Direct Labor

The cost of the work performed by employees directly involved in manufacturing a product or providing a service.

Time Variance

The gap between the time actually needed to accomplish a task and the time that was anticipated for it.