Efficiency refers to how productive a company is in using its assets, and is usually measured relative to how much revenue is generated from a certain level of assets.

Asian Day Spa purchased $7,800 in plumbing components from Kraft Suppliers. Asian Day Spa signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, what is the amount due on the note? (Use 360 days a year.)

Temporary accounts include all of the following except:

Longmont has beginning equity of $277,000, net income of $63,000, dividends of $25,000 and no additional investments by stockholders during the period. Its ending equity is:

Summers, Inc.  installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. What journal entry would be needed to record the machines’ second year depreciation under the units-of-production method?

On May 1, Urbanek, Inc. sold merchandise in the amount of $5,800 to Sanders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Urbanek uses the perpetual inventory system and the gross method. The journal entry or entries that Urbanek will make on May 1 is:

A law firm collected $1,800 on account for work performed in the previous month. Which of the following general journal entries will the firm make to record this transaction?

On October 15, a company received $15,000 cash as a down payment on a consulting contract. The amount was credited to Unearned Consulting Revenue. By October 31, 10% of the services required by the contract were completed. The company will record consulting revenue of $1,500 from this contract for October.

All of the following are true regarding prepaid expenses except:

After posting the entries to close all revenue and expense accounts, Marker Company’s Income Summary account has a credit balance of $6,000, and its Dividends account has a debit balance of $2,500. These balances indicate that net income for the current accounting period amounted to $3,500.