The Controller of Menno Corp Presents You with the Following

question 330

Multiple Choice

The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance:

-Using the high-low method, what is the monthly fixed maintenance cost at Menno Corp?

• A) $1,260
• B) $1,900
• C) $7,785
• D) $18,460

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Definitions:

Liquid Assets

Assets that can be quickly and easily converted into cash with minimal impact on their value.

Cash Equivalents

Short-term investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Receivables

Amounts owed to a company by its customers or other parties for goods or services that have been delivered or used, but not yet paid for.

Income Statements

Financial statements that report a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.