Case 3-1 George Runs a Mid-Size Accounting Practice and Recently Upgraded to Upgraded

question 50

Multiple Choice

Case 3-1
George runs a mid-size accounting practice and recently upgraded to Excel 2013.He expects sales to grow in the next few months during tax season.After that,he would like to begin upgrading some of the equipment and furniture for the employees in his office.He will start with the Reception area,which has the most visibility.
-If sales reach a certain amount by the end of April,George will purchase a desk,chair,computer,and software upgrade for the receptionist.Otherwise,George will just purchase the desk and chair.How can George determine the best action to take using a Sales Data worksheet?

• A) Copy and paste all his Sales data formulas with relative references
• B) Add an IF function formula to his Sales data worksheet
• C) Add the NOW function formula to his Sales data worksheet
• D) Copy and paste all his Sales data formulas with absolute references

Recognize the contributions and impacts of key figures and legislation in U.S. economic history.

Understand the factors relevant and irrelevant in computing depreciation.

Identify and classify expenditures as revenue expenditures or capital expenditures.

Calculate the cost of new assets acquired through exchange with consideration of commercial substance.

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Definitions:

Economic Profit

the difference between total revenue and total opportunity costs; a measure of profit beyond the normal return on investment.

Marginal Cost

The addition to total cost from producing one additional unit of a product.

Perfectly Competitive Firm

A perfectly competitive firm operates in a market where there are many buyers and sellers, the product is homogenous, and there is free entry and exit from the market.

Economic Profit

The gap in financial terms between total earnings and all financial burdens, considering both express and tacit costs.