Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?
A) The cost incurred for each job will differ as per the order specifications.
B) The direct costs incurred for each job are the same, only indirect costs vary.
C) The raw materials used have already been accounted for using process costing.
D) Custom furniture manufacturers produce large quantities of similar products.
A
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ABC Co. leased a portion of its store to another company for eight months beginning on October 1, 2004. This other company paid the entire rent of $6,400 cash on October 1, which ABC Co. recorded as unearned revenue. The journal entry made by ABC Co. at year- end on December 31, 2004 would include:
A) A debit to Rent Earned for $2,400. B) A credit to Unearned Rent for $2,400. C) A debit to Cash for $6,400. D) A credit to Rent Earned for $2,400. E) A debit to Unearned Rent for $4,000.
Trade fixtures are treated as personal, not real, property because of a presumption that neither party intends such fixtures to become a permanent part of the realty
Indicate whether the statement is true or false