Hastings Corporation Has Purchased a Group of Assets for $15,000

question 55

Multiple Choice

Hastings Corporation has purchased a group of assets for $15,000.The assets and their relative market values are listed below. Which of the following amounts would be debited to the Land account?

• A)$1,962
• B)$5,571
• C)$1,714
• D)$7,714

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Definitions:

Current Ratio

A measurement of a corporation's capability to meet obligations due in less than a year by evaluating its short-term liquid assets.

Inventory Turnover

A ratio that measures how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Cost of Goods Sold

The direct costs attributable to the production of the goods or services sold by a company, including material and labor expenses.

Sales on Account

Transactions where goods are sold but payment is deferred, creating receivables for the seller.