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Question
Alonzo Company has been experiencing lost sales and high returns recently, so they decided to undertake a comprehensive quality program. Here are factors being considered:
Estimated lost profits due to poor quality products $200,000
Excessive warranty repair costs $60,000
Costs of correcting for defective goods on the assembly line $10,000
If the cost of implementing the quality program is under $270,000, the company should go forward with it.
Answer
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Related questions
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Only temporary accounts appear on the post-closing trial balance.
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The post-closing trial balance is an optional step.
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A) chart of accounts.
B) ledger.
C) trial balance.
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Answer: B
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B) Revenues decrease owner's equity, so a revenue account's normal balance is a debit balance.
C) Revenues increase owner's equity, so a revenue account's normal balance is a debit balance.
D) Revenues increase owner's equity, so a revenue account's normal balance is a credit balance.
Q:
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B) account number, as shown in the chart of accounts.
C) sum of the debits only.
D) sum of the credits only.
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Journalizing a transaction means:
A) calculating the balance in an account.
B) finding the account number in the chart of accounts.
C) recording the transaction, including a brief explanation.
D) copying the information from the journal to the ledger.
Q:
In the accounting system, the first place that transactions are recorded is the ledger.
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For liabilities and revenues, a debit increases the account.