Oakland Corp

question 49

Multiple Choice

Oakland Corp.purchased land and a building for a combined cost of $500,000.Oakland must

• A)record the $500,000 acquisition cost in an account called Land and Buildings.
• B)depreciate the $500,000 acquisition cost,less any residual value,over the expected useful life of the building.
• C)record all of the cost in the Land account because part of the purchase involved land.
• D)allocate the $500,000 acquisition cost to separate Land and Buildings accounts based on their respective fair market values.

Understand the concept of sources and uses of cash in financial management.

Calculate and interpret cash coverage ratios.

Recognize the importance of liquidity measures such as current, quick, and cash ratios.

Analyze financial statements to compute key financial ratios.

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Definitions:

Rubella

A viral infection that can cause intellectual disabilities and heart disease in the embryo. Also called German measles.

Birth Defects

Abnormalities present at birth that can cause physical or mental disability, ranging from mild to severe.

Intellectual Disabilities

Disabilities characterized by significant limitations both in intellectual functioning and in adaptive behavior, covering many everyday social and practical skills.

Independent Administrative Agencies

Government agencies that operate independently of the executive branch, generally with a unique purpose or function that does not fit within the traditional departmental executive structure.