Use this information pertaining to Tucson Company to answer the following question. 1. The corporation's Supplies account showed a beginning debit balance of $400 and supplies purchased of $1,600. There were $600 of supplies on hand at year end. 2.Depreciation on a building is estimated to be $10,000. 3.A one-year insurance policy was purchased for $4,000. Six months have passed since the
purchase. 4.Accrued interest on a note receivable amounted to $200. 5.The company received a $3,600 advance payment during the year on services to be performed. By the end of the year, one-third of the services had been performed. The adjusting entry to record the amount of service revenue earned during the accounting period is
A) Service Revenue 2,400Unearned Revenue 2,400
B) Unearned Revenue 1,200Service Revenue 1,200
C) Service Revenue 1,200Unearned Revenue 1,200
D) Unearned Revenue 2,400Service Revenue 2,400
B
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Which of the following is an advantage of a general partnership?
A) It has an unlimited lifetime. B) Taxes are levied on a partnership and not on its owners. C) Expenses required for creating a partnership are low. D) Ownership interests are easily transferable.
The drawback of a just-in-time inventory system is that it:
A. increases the total capital required by a firm. B. leaves a firm without a buffer stock of inventory. C. increases inventory holding costs, such as warehousing and storage costs. D. is less efficient than traditional system in spotting and fixing defective inputs. E. lowers a company's profitability as measured by return on capital invested.