Armstrong Company Recently Acquired a New Computer System

question 131

Multiple Choice

Armstrong Company recently acquired a new computer system.Which of the following costs associated with the computer should not be debited to the Equipment account?

• A)Insurance coverage purchased by Armstrong to cover the computer during shipment from the manufacturer
• B)Wages paid to system programmers hired to prepare the new computer for use
• C)Replacement of several circuit boards damaged during installation
• D)Installation of new electrical power supplies required for the computer

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Definitions:

Entrepreneur

An individual who organizes and operates a business or businesses, taking on financial risk to do so.

Serial Entrepreneur

An individual who continuously comes up with new ideas and starts new businesses, rather than staying to manage one business for a long period.

Work Hours

The designated periods during which employees are expected to perform their job duties.

Life Control

The extent to which individuals feel they have control over their own life circumstances and outcomes.