Archives
Accounting Chapter 1 1 A debt that a business owes to an outside party is called
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 1 Accounting and the Business Environment Learning Objective 1-1 1) Accounting is the information system that measures business activity, processes the data into reports, and communicates […]
Accounting Chapter 1 2 A proprietor makes a cash withdrawal from the proprietorship
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9) A business settles a liability by making a payment with cash. How does paying this liability affect the accounting equation? A) Assets decrease; liabilities decrease. B) Liabilities decrease; owner’s […]
Accounting Chapter 1 3 What is the effect of the withdrawal on the accounts of the business
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10) Hamilton Lawn Service incurred $500 labor expense and promised to pay the labor agency within 30 days. Which of the following accounts decreased? A) Accounts payable B) Owner’s capital […]
Accounting Chapter 10 1 Amounts owed for products or services purchased on account are contingent liabilities
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 10 Current Liabilities and Payroll Learning Objective 10-1 1) If a note payable has installments due within a year, the entire note is treated as a […]
Accounting Chapter 10 2 Which of the following are pay amounts stated at an hourly rate
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 30) Arc Digital starts the year with balances in its Estimated warranty payable account and Warranty expense account as shown below. During the year, there were $190,000 of sales and […]
Accounting Chapter 10 3 Which of the following is an important aspect of control over payroll
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 40) Tom’s gross pay for the week is $800. Tom’s yearly pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is […]
Accounting Chapter 11 1 Installment payments for mortgages are normally paid once per year
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 11 Long-Term Liabilities, Bonds Payable, and Classification of Liabilities on the Balance Sheet Learning Objective 11-1 1) The current portion of notes payable is the principal […]
Accounting Chapter 11 2 If a bond is issued at a premium, it will sell for more than face value
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 4) If a bond is issued at a premium, it will sell for more than face value. Answer: TRUE Diff: 1 LO: 11-2 EOC Ref: S11-3 AACSB: Content/Knowledge AICPA Business: […]
Accounting Chapter 11 3 Accounts payable is always shown on the balance sheet in current liabilities.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 41) The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on March 31, 2014. The bond pays interest on March 31 and September 30. The market rate […]
Accounting Chapter 12 1 A corporation is a separate legal entity formed under the laws of a particular state
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 12 Corporations: Paid-in Capital and the Balance Sheet Learning Objective 12-1 1) The formation of a corporation is generally less complicated than the formation of a […]
Accounting Chapter 12 2 A net loss for the year increases the balance in Retained earnings
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 37) Lerner Company had the following transactions in 2013, its first year of operations. • Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and […]
Accounting Chapter 12 3 If a company has a strong rate of return on common stockholders’ equity
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 24) Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $0.01 par value; the preferred stock is 4% […]
Accounting Chapter 13 1 The declaration of a stock dividend creates a liability for the corporation
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 13 Corporations: Effects on Retained Earnings and the Income Statement Learning Objective 13-1 1) Stock dividends have no effect on assets or liabilities. Answer: TRUE Diff: […]
Accounting Chapter 13 2 The purchase of treasury stock requires a credit to the Common stock account
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 31) Which of the following will decrease the balance in Retained earnings? A) Cash dividend B) Stock split C) Purchase of long-term assets D) Purchase of treasury stock Answer: A […]
Accounting Chapter 13 3 Which of the following is a common reason for companies to retire preferred stock
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 43) At March 31, 2014, the Park Place Company shows the following data on their balance sheet: Stockholders’ equity Common stock, $1 par, 1,000,000 shares authorized, $120,000 120,000 shares issued, […]
Accounting Chapter 13 4 What are the conditions that must be TRUE for an event to be considered extraordinary
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 18) For the year 2013, Foxmore Company reports the following items as part of their financial results: Sales revenues from regular business operations $3,000,000 Cost of goods sold 900,000 Operating […]
Accounting Chapter 14 1 Cash equivalents are assets that can be converted to cash within one year
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 14 The Statement of Cash Flows Learning Objective 14-1 1) Cash equivalents are assets that can be converted to cash within one year. Answer: FALSE Diff: […]
Accounting Chapter 14 2 What was the net amount of Cash from investing activities
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 52) Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet: 2014 2013 Increase/decrease Cash $ […]
Accounting Chapter 14 3 Where would this transaction appear when the company prepares the statement of cash flows
41 88) Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2014. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 42 Additional information provided: • […]
Accounting Chapter 14 4 Avatar Company uses the direct method to prepare its statement of cash flows
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 27) Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013: From the income statement: Revenues: $240,000 Cost of […]
Accounting Chapter 14 5 Parmesan Company uses the direct method for its statement of cash flow
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 75 Answer: Explanation: This question is not available in MyAccountingLab. Diff: 1 LO: 14-7 EOC Ref: P14B-1A AACSB: Analytic Skills AICPA Business: Strategic/Critical Thinking AICPA Functional: Measurement, Reporting 76 3) […]
Accounting Chapter 15 1 Investors and creditors generally evaluate a company by using one year’s data
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 15 Financial Statement Analysis Learning Objective 15-1 1) Investors and creditors generally evaluate a company by using one year’s data. Answer: FALSE Diff: 1 LO: 15-1 […]
Accounting Chapter 15 2 If an analyst wishes to compare several different companies that vary in size
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 11) Please refer to the vertical analysis of income statement data shown below: (Dollar amounts in millions) 2014 2013 Amount % of Total Amount % of Total Revenues $6,355 100.0% […]
Accounting Chapter 15 3 Which of the following statements can be correctly concluded from the above data
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 12) Which of the following balance sheet displays shows only percentages? A) Horizontal analysis balance sheet B) A common-size balance sheet C) A vertical analysis balance sheet D) A balance […]
Accounting Chapter 15 4 The dividend payout ratio is used for which kind of evaluation
59 44) Peartree Company provides the following data: BALANCE SHEET Dec 31, 2014 Dec 31, 2013 Cash $21,000 $18,000 Accounts receivable, net 31,000 35,000 Inventory 53,000 25,000 PP&E, net 120,000 90,000 Total assets $225,000 $168,000 Additional information: • Net sales […]
Accounting Chapter 16 1 Managerial accounting’s focus is to provide information for internal planning and control
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 16 Introduction to Management Accounting Learning Objective 16-1 1) Managerial accounting’s focus is to provide information for internal planning and control. Answer: TRUE Diff: 1 LO: […]
Accounting Chapter 16 2 Selling and administrative expenses are subtracted from cost of goods sold to obtain gross profit
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Explanation: This question is not available in MyAccountingLab. Diff: 2 LO: 16-5 EOC Ref: P16-24A AACSB: Analytic Skills AICPA Business: Critical Thinking AICPA Functional: Measurement, Reporting 18) Excellent Company sells […]
Accounting Chapter 16 3 Prepare a schedule of cost of goods manufactured for South State Company
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 63) The following information was obtained from Sizzler Company: • Advertising costs: $7,900 • Indirect labor: $9,000 • Direct Labor: $31,000 • Indirect materials: $7,200 • Direct materials: $47,000 • […]
Accounting Chapter 17 1 Process costing is used by companies that produce large numbers of identical units in a continuous fashion
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 17 Job Order and Process Costing Learning Objective 17-1 1) Accounting firms, building contractors, and healthcare providers are companies that use job order costing. Answer: TRUE […]
Accounting Chapter 17 2 Deltona Company has a preliminary debit balance in the Manufacturing overhead account
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 30) Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a rate of 20% times […]
Accounting Chapter 17 3 equivalent units must be calculated separately for materials and conversion costs
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 30) At January 1, 2012, Feldstein Manufacturing Company had a beginning balance in Work in process of $80,000 and a beginning balance in Finished goods of $20,000. During the year, […]
Accounting Chapter 17 4 what was cost per equivalent unit with respect to direct materials costs
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 6) In a process costing system, calculating the cost per unit is used for a number of purposes. Which of the following is NOT one of those purposes? A) To […]
Accounting Chapter 18 1 Activity-based costing focuses on a single predetermined overhead rate for cost analysis
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 18 Activity-Based Costing and Other Cost Management Tools Learning Objective 18-1 1) With increased competition, managers need more accurate estimates of product costs to set prices […]
Accounting Chapter 18 2 Target pricing is based on the cost to produce a product, plus a profit mark-up
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 43) Orlando Avionics makes three types of radios for small aircraft-model A, model B, and model C. The manufacturing operations are mechanized and there is no direct labor. Manufacturing overhead […]
Accounting Chapter 18 3 Bakersfield Manufacturing produces agricultural tools including a hand tiller
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 18) What is value engineering? A) Reevaluating market strategies to create a more valuable product B) Estimating the value added of the engineering processes C) Reevaluating production activities to reduce […]
Accounting Chapter 18 4 Losses caused by downtime in the production process are considered
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 24) Archetype Fabrication makes pre-stressed concrete forms for the building industry. They use just–in-time production and accounting methodology. At the beginning of January, selected account balances are shown in the […]
Accounting Chapter 19 1 Total variable costs change in response to changes in the volume of production
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 19 Cost-Volume-Profit Analysis Learning Objective 19-1 1) Peterson Company has both fixed and variable costs. If the volume doubles, the total fixed costs will double. Answer: […]
Accounting Chapter 19 2 Bell Products Manufactures Packs Pesticides Which Are Sold Farmers Cost Volume And
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 23) Olympus Company sells 1,400 units per month at a price of $28.00 per unit. The variable cost is $22.50 per unit. How much is the total contribution margin? (Please […]
Accounting Chapter 19 3 Runnymeade Products makes a racing bicycle tire. Cost and volume data are below
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 14) Lightfoot Company sells its product for $55 and has variable costs of $30 per unit. Total fixed costs are $25,000. What will be the effect on the breakeven point […]
Accounting Chapter 19 4 When a business is considering whether to replace old equipment with newer equipment
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8) Mist Company sells two products-A and B. Mist predicts that it will sell 2,500 units of A and 1,500 units of B during the next period. The unit contribution […]
Accounting Chapter 2 1 In a typical chart of accounts, liabilities appear before assets
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 2 Recording Business Transactions Learning Objective 2-1 1) An account is the detailed record of the changes in a particular asset, liability, or owner’s equity. Answer: […]
Accounting Chapter 2 2 A business collects cash from a customer in payment of accounts receivable
21 19) A business makes a cash payment to a supplier “on account” (for supplies which were purchased earlier.) Which account is debited? A) Cash B) Accounts payable C) Supplies D) Service revenue Answer: B Diff: 2 LO: 2-4 EOC […]
Accounting Chapter 2 3 At the end of the month, the business receives a bill for utility expenses
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 59) A business has the following transactions: the business is started by receiving $20,000 from the owner. The business purchases $500 of supplies on account. The business purchases $2,000 of […]
Accounting Chapter 20 1 Dane Metalworks produces a special kind of metal ingots which are unique
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 20 Short-Term Business Decisions Learning Objective 20-1 1) If a business is considering buying a new vehicle, the cost of insurance on the new vehicle is […]
Accounting Chapter 20 2 Easy Cook Company manufactures two products: toaster ovens and bread machines
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 31) Perfect Time Company manufactures and sells watches for $36 each. Great Products Company has offered Perfect Time $21 per watch for a one time order of 5,000 watches. The […]
Accounting Chapter 20 3 as long as the additional processing generates higher sales revenues, it is the preferred alternative
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16) Sports Hats, Etc. has two product lines-baseball helmets and football helmets. Income statement data for the most recent year follow: Total Baseball Helmets Football Helmets Sales revenue $460,000 $310,000 […]
Accounting Chapter 20 4 Lincoln Company produces a part that is used in the manufacture of one of its products
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9) Victory Company makes a special kind of racing tire. Variable costs are $220, and fixed costs are $30,000 per month. Victor sells 500 units per month at a price […]
Accounting Chapter 21 1 A post-audit is an analysis of an investment that is made after the investment is underway or completed
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 21 Capital Investment Decisions and the Time Value of Money Learning Objective 21-1 1) A post-audit is an analysis of an investment that is made after […]
Accounting Chapter 21 2 If he selects the second option, how much is the present value of that alternative
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Learning Objective 21-3 1) If Teddy Godfried invests $400,000 today at a rate of 9% compounding yearly, his investment will grow to $1,000,000 in 10 years. Future Value of $1 […]
Accounting Chapter 21 3 managers should use more than one measure for making a sound investment decision
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 25) You are currently 25 and would like to retire at age 45. You plan to save by making equal investments of $10,000 at the end of each year for […]
Accounting Chapter 21 4 the decision should be made on the basis of which of the following
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 16) Osterwitz Company is evaluating an investment of $1,000,000 which will yield cash flows of $142,400 per year for 10 years with no residual value. Present Value of an Annuity […]
Accounting Chapter 21 5 Which of the following best describes the term opportunity cost
74 42) Please refer to the following data concerning 4 investment alternatives: Project A Project B Project C Project D Initial investment $210,000 $400,000 $550,000 $1,000,000 PV of cash inflows $285,000 $490,000 $800,000 $990,000 Payback period (years) 7.2 6.0 9.5 […]
Accounting Chapter 22 1 Budgeting is a technique that is used to plan for future cash inflows and outflows.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 22 The Master Budget and Responsibility Accounting Learning Objective 22-1 1) Budgeting is a technique that is used to plan for future cash inflows and outflows. […]
Accounting Chapter 22 2 The budgeted cash collections for the current month typically take into consideration collections
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 23) Caskill Company forecasts $40,000 of sales in January, $38,000 in February, $30,000 in March, and $32,000 in April. Cost of goods sold is budgeted at 75% of sales. Caskill […]
Accounting Chapter 22 3 What is the budgeted cash balance at the end of July, after required financing transactions
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 15) Berkeley Products has a cash balance of $20,000 at April 1, 2011. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are […]
Accounting Chapter 22 4 To provide the balance for the Cash account, which document should be used
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 35) Caribbean Tool and Die Company’s forecasted sales for April, May, June and July are $150,000, $225,000, $180,000, and $210,000, respectively. Sales are 50% cash and 50% credit with all […]
Accounting Chapter 22 5 The salary and benefits of the legal department’s personnel would be an example following
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 81 Answer: Cash budget Jul Aug Sep Beginning cash balance $4,000 $8,000 $6,958 Cash collections 50,000 40,000 48,000 Cash available 54,000 48,000 54,958 Cash payments: Purchases of inventory 31,000 22,000 […]
Accounting Chapter 22 6 Henderson is now consolidating the division data into a company income statement
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 22) Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions-Construction, Manufacturing, and Military. The Construction Division has been allocated a […]
Accounting Chapter 23 1 A variance is the difference between an actual amount and a budgeted amount
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 23 Flexible Budgets and Standard Costs Learning Objective 23-1 1) A static budget is prepared for one level of sales volume. Answer: TRUE Diff: 1 LO: […]
Accounting Chapter 23 2 Which of the following is one of the reasons why companies use standard costs
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 12) The Carolina Products Company has just completed a flexible budget analysis of 2nd quarter operating income, as shown here: Actual Flexible Budget Flexible Sales Volume Static Results Variance Budget […]
Accounting Chapter 23 3 The production manager of a company was experiencing high defect rate
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2) When a company is using standard costs, a favorable variance is a definite indication that a manager is doing a good job. Answer: FALSE Diff: 2 LO: 23-4 EOC […]
Accounting Chapter 23 4 the static budget for variable overhead costs included the following data
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Learning Objective 23-5 1) When completing a standard costing income statement, favorable variances for direct materials or direct labor will go to reduce the “cost of goods sold at standard […]
Accounting Chapter 23 5 Work in process inventory is debited for which of the following
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3) Atlantic Manufacturing Company uses standard costing methodology in their journal entries and accounts. Standards for direct labor are as follows: Hours per unit 0.5 Price per hour $18.00 Actual […]
Accounting Chapter 24 1 The central reservations office at American Airlines is most likely treated as a
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 24 Performance Evaluation and the Balanced Scorecard Learning Objective 24-1 1) When a small company grows to a large size, it may decide to decentralize because […]
Accounting Chapter 24 2 Waycross Construction Company has a pipe yard operation which is run as a cost center
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 9) Waycross Construction Company has a pipeyard operation which is run as a cost center. They are preparing a performance report for the month of March and have provided the […]
Accounting Chapter 24 3 Which of the following statements MOST accurately describes the profit margin
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 22) Investment centers need KPIs to evaluate how efficiently the business unit uses assets. Typical KPIs of this type would include all of the following EXCEPT: A) ROI (Return on […]
Accounting Chapter 3 1 Accrual accounting records transactions ONLY when cash is received or paid.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 3 The Adjusting Process Learning Objective 3-1 1) Accrual accounting records transactions ONLY when cash is received or paid. Answer: FALSE Diff: 1 LO: 3-1 EOC […]
Accounting Chapter 3 2 What is the effect of the adjusting entry for Depreciation expense
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 39) The accountant for Noble Jewelry Repair Services forgot to make an adjusting entry for Depreciation expense for the current year. Which of the following is one of the effects […]
Accounting Chapter 3 3 Century Security Services had a new customer come in to their office
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 89) A business hired a repairman to overhaul their plumbing system. The repairman began working on September 15 and will finish the work on October 15. The business will pay […]
Accounting Chapter 4 1 Which of the following statements is TRUE concerning the worksheet
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 4 Completing the Accounting Cycle Learning Objective 4-1 1) The last two columns generally found on the right side of the worksheet are the income statement […]
Accounting Chapter 4 2 Revenue accounts and expense accounts are closed to the Capital account
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 3) The following is the adjusted trial balance from the worksheet for Tuttle Photography. Tuttle Photography Worksheet For the Year Ended December 31, 2013 Accounts Debit Credit Cash $15,000 Accounts […]
Accounting Chapter 4 3 The post-closing trial balance shows the net income for the period just ended
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 49) The following is the adjusted trial balance for Tuttle Photography. Account Debit Credit Cash $1,700 Accounts receivable 8,500 Supplies 100 Equipment 7,500 Accumulated depreciation $2,000 Accounts payable 1,200 Salary […]
Accounting Chapter 4 4 Which of the following would be considered the POOREST current ratio
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 5) The following is the balance sheet for Green Landscaping. Which of the following is the debt ratio? (Round to two decimal places.) A) .39 B) .45 C) 1.04 D) […]
Accounting Chapter 5 1 A count of the physical inventory at year-end shows that there is actually
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 5 Merchandising Operations Learning Objective 5-1 1) The periodic inventory system is normally used for relatively inexpensive goods. Answer: TRUE Diff: 1 LO: 5-1 EOC Ref: […]
Accounting Chapter 5 2 The periodic inventory system is normally used for relatively inexpensive goods
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 17) On November 1, 2012, Everett Janitorial Supply sold merchandise for $5,000, FOB destination, 2/10, n/30. The merchandise cost $3,200. Everett paid transportation costs of $100. On November 6, 2012, […]
Accounting Chapter 5 3 Which of the following is subtracted from Gross profit to arrive at Operating income
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8) Which of the following is subtracted from Net sales revenue to arrive at Gross profit? A) Cost of goods available for sale B) Cost of goods sold C) Sales […]
Accounting Chapter 5 4 The Purchase Was Made February Which The Following Journal Entries Properly Records
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2) With a periodic inventory method, it is necessary to conduct a physical count of inventory to determine cost of goods sold. Answer: TRUE Diff: 1 LO: 5-7 EOC Ref: […]
Accounting Chapter 6 1 The lower-of-cost-or-market rule demonstrates accounting conservatism in action
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 6 Merchandising Inventory Learning Objective 6-1 1) The consistency principle states that a business should use the same accounting methods from period to period. Answer: TRUE […]
Accounting Chapter 6 2 FIFO produces lower cost of goods sold and higher gross profit than LIFO
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 28) Santa Fe Tile Company had the following inventory purchases and sales during the month of May. The company uses the periodic inventory method. If Santa Fe uses LIFO costing, […]
Accounting Chapter 6 3 Which inventory valuation model minimizes income tax when costs are rising
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 2) Given the same purchase and sales data, the three major costing methods will result in three different amounts for Cost of goods sold. Answer: TRUE Diff: 1 LO: 6-4 […]
Accounting Chapter 6 4 Gross profit is Sales revenue divided by Cost of goods sold
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7) Which of the following are clues that a company may have been “cooking the books” by fraudulently increasing their level of net sales? A) Several shipping clerks checked into […]
Accounting Chapter 7 1 Keeping office supplies under lock and key is representative of
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 7 Internal Control and Cash Learning Objective 7-1 1) Internal control is the organizational plan and all the related measures adopted by an entity to safeguard […]
Accounting Chapter 7 2 Journal entries are required for the reconciling items on the book side because
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 28) A company received a bank statement with a balance of $5,350. Reconciling items included a bookkeeper error of $200 (a $300 check recorded as $500), two outstanding checks totaling […]
Accounting Chapter 7 3 Which of the following is the first step in the purchasing and payment process?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 53) Please refer to the following bank reconciliation: Please prepare the adjusting entry for the fourth reconciling item (bank service charge.) Answer: Miscellaneous expense 35 Cash 35 Explanation: This question […]
Accounting Chapter 8 1 The two major types of receivables are accounts receivable and notes receivable
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 8 Receivables Learning Objective 8-1 1) The two major types of receivables are accounts receivable and notes receivable. Answer: TRUE Diff: 1 LO: 8-1 EOC Ref: […]
Accounting Chapter 8 2 The direct write-off method is used primarily by large, publicly owned companies
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 40) At January 1, Davidson Services has the following balances: During the year, Davidson has $104,000 of credit sales, collections of $100,000, and write-offs of $1,400. Davidson records Uncollectible account […]
Accounting Chapter 8 3 The acid-test ratio is computed as current assets divided by current liabilities
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 13) On October 2, 2014, Allen Jewelry Company accepted a 4-month, 10% note for $2,400 in settlement of an overdue account receivable. What is the journal entry to record the […]
Accounting Chapter 9 1 The cost of land includes the cost of removing unwanted buildings.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Accounting, 9e (Horngren) Chapter 9 Plant Assets and Intangibles Learning Objective 9-1 1) The cost of razing a building on a parcel of land to build a new building is […]
Accounting Chapter 9 2 A loss on disposal of an asset is recorded when cash received is less than book value
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 44) Charterhouse Services purchased a van on January 1, 2012, for $56,000. It has an estimated life of 5 years, and an estimated salvage value of $6,000. Dawson uses straight–line […]
Accounting Chapter 9 3 Many companies have gotten into trouble by recording costs as expenses
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 37) Job Sales sold a truck for $9,000 cash. It was originally purchased for $36,000, and had accumulated depreciation of $30,000 at the time of sale. Please provide the journal […]