Hartley's Meat Pies Is Considering Replacing Its Existing Delivery Van

question 164

Multiple Choice

Hartley's Meat Pies is considering replacing its existing delivery van with a new one.The new van can offer considerable savings in operating costs.Information about the existing van and the new van follow:

Sunk costs include ________.

• A)the accumulated depreciation of the existing van
• B)the original cost of the new van
• C)the current salvage value of the existing van
• D)the annual operating cost of the new van

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Definitions:

Original Entry

Describes the initial recording of a financial transaction in the accounting records or journal, marking the first phase in the accounting cycle.

Specialized Journals

Accounting journals designed for recording specific types of financial transactions, streamlining the accounting process.

General Journal

A book or digital record used in double-entry bookkeeping to chronicle all financial transactions in chronological order, allowing for the tracking of all company transactions.

Accounting System Design

The process of defining the structure, components, and processes of an accounting system tailored to meet specific financial reporting and management needs.