Financial Accounting: Tools for Business Decision Making 5th Edition

FOR INSTRUCTOR USE ONLY APPENDIX D TIME VALUE OF MONEY SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 5. 2 K 9. 4 K 13. 6 K 17.

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY Ans: C, LO: 6, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Investment Decisions. Solution: $660,000 3.69590 FOR INSTRUCTOR USE ONLY Ans:

Reporting and Analyzing Investments FOR INSTRUCTOR USE ONLY Ans: D, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA Solution: $19,500 $44,500 1,0002,500 = $1,700 FOR INSTRUCTOR USE ONLY Ans: D, LO: 3, Bloom: AP,

Reporting and Analyzing Investments FOR INSTRUCTOR USE ONLY E-41 Solution 173 (812 minutes) (a) Jan. 1 Stock Investments.. 300,000 Cash. 300,000 Dec. 31 Cash ($20,000 x .25) 5,000 Stock Investments.. 5,000 Dec. 31 Stock Investments ($120,000 x .25). 30,000 Revenue from Stock Investments.. 30,000 (b) Investment in Fava, January

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY E-52 Solution 186 (15-20 min.) (a) Feb. 5 Cash ........................................................................ 7,900 Stock Investments ............................................. 7,500 Gain on Sale of Stock Investments ................... 400 (To record sale of 50 shares of Interstate common stock)

FOR INSTRUCTOR USE ONLY APPENDIX E REPORTING AND ANALYZING INVESTMENTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 2 C 17. 3 C 25. 4 K 33.

APPENDIX F PAYROLL ACCOUNTING SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 3. 1 K 5. 2 K 7. 3 C 9. 3 C 2. 1 K 4.

APPENDIX G SUBSIDIARY LEDGERS AND SPECIAL JOURNALS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES True-False Statements Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 5. 1 K 9. 2 K 13. 2 K 17. 3

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition G - 18 Ex. 72 (Cont.) The balance in the Accounts Payable control account of $41,580 has been verified as correct. Also assume that the journals references in the Post Ref. columns of the accounts payable subsidiary

APPENDIX H ACCOUNTING FOR PARTNERSHIPS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 5. 1 K 9. 2 K 13. 3 C 17. 5 K 2. 1 K 6.

APPENDIX I ACCOUNTING FOR SOLE PROPRIETORSHIPS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 5. 2 K 9. 3 K 13. 4 K 17. 4 K 2. 2 K

Pricing J - 39 Ex. 163 Joey's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,000 sessions. The company has invested $2,000,000

APPENDIX J PRICING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 C 6. 2 C 11. 3 K 16. 4 K 21. 6 C 2. 1 K 7. 2 C

Pricing J - 21 95. Assume the Thread Division has excess capacity. The Garment Division wants the Thread Division to furnish them additional spools of thread that could be made using the excess capacity. In a negotiated transfer price, the Thread Division should accept as a minimum

Achievement Test 1: Chapters 1 and 2 Name __________________________ Accounting Instructor _______________________ Kimmel, Weygandt, and Kieso Section # _______ Date _________ Part I II III IV V VI Total Points 42 8 10 10 18 12 100 Score

Introduction to Financial Statements FOR INSTRUCTOR USE ONLY 1-55 Solution 198 (Cont.) Liabilities and Stockholders Equity Liabilities Accounts payable ............................................................................ $18,000 Stockholders equity Common stock ................................................................................. $40,000 Retained earnings ............................................................................ 26,000* 66,000 Total liabilities and stockholders equity .................................... $84,000 *$39,000 $13,000 Solution 198 (Cont.) Liabilities and Stockholders Equity Liabilities

Final Exam: Chapters 1-13 Name __________________________ Accounting Instructor _______________________ Kimmel, Weygandt, & Kieso Section # _______ Date _________ Part I II III IV V VI VII VIII Total Points 76 20 8 18 15 12 21 30 200 Score

COMPREHENSIVE EXAMINATION F (Chapters 18 - 21) Approximate Problem Topic Points Minutes F - I Multiple Choice ............................................. 22 22 F - II Cost-Volume-Profit ....................................... 24 16 F - III Budgeting ..................................................... 18 15 F - IV Contribution Margin ...................................... 14 10

FOR INSTRUCTOR USE ONLY CHAPTER 1 INTRODUCTION TO FINANCIAL STATEMENTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 2 K 17. 3 K 25. 4 K

COMPREHENSIVE EXAMINATION G (Chapters 22 - 24) Approximate Problem Topic Points Minutes G - I Multiple Choice ............................................. 16 16 G - II Variance Analysis ......................................... 12 12 G - III Capital Budgeting ......................................... 16 16 G - IV Flexible Overhead Budget

Introduction to Financial Statements FOR INSTRUCTOR USE ONLY 1-41 Be. 186 For the items listed below, fill in the appropriate code letter to indicate whether the item is an asset, liability, or stockholders equity item. Code Asset A Liability L Stockholders Equity SE

COMPREHENSIVE EXAMINATION D (Chapters 12 - 13) Approximate Problem Topic Points Minutes D - I Multiple Choice ............................................. 24 20 D - II Statement of Cash Flows ............................ 36 30 D - III Comparative Analysis ................................... 10 10 D - IV Calculation of Ratios

Comprehensive Examination A A-1 COMPREHENSIVE EXAMINATION A (Chapters 1 - 5) Approximate Problem Topic Points Minutes A - I Multiple Choice ............................................. 20 13 A - II Matching ...................................................... 12 8 A - III Adjusting Entries ......................................... 15 10 A -

COMPREHENSIVE EXAMINATION E (Chapters 14 - 17) Approximate Problem Topic Points Minutes E - I Multiple Choice ............................................. 20 20 E - II Cost of Goods Manufactured and Sold ........ 20 15 E - III Job Order Cost Accounting .......................... 20 15 E

COMPREHENSIVE EXAMINATION B (Chapters 6 - 8) Approximate Problem Topic Points Minutes B - I Multiple Choice ............................................. 20 17 B - II Ratios .......................................................... 12 10 B - III Bank Reconciliation ..................................... 16 15 B - IV Periodic Inventories ...................................... 16 10 B

COMPREHENSIVE EXAMINATION C (Chapters 9 - 11) Approximate Problem Topic Points Minutes C - I Multiple Choice ............................................ 18 18 C - II Ratios .......................................................... 18 12 C - III Corporation Entries ..................................... 20 15 C - IV Bonds and Notes Payable ............................

Introduction to Financial Statements FOR INSTRUCTOR USE ONLY Ans: B, LO: 4, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting Solution: $570,000 + ($600,000 $380,000) $140,000 = $650,000 FOR INSTRUCTOR USE ONLY Ans: B, LO: 4,

FOR INSTRUCTOR USE ONLY CHAPTER 10 REPORTING AND ANALYZING LIABILITIES SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 15. 3 K 29. 4 K 43. 5 C

Reporting and Analyzing Liabilities FOR INSTRUCTOR USE ONLY Ans: D, LO: 7, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting Solution: $120,000 + $100,000 + $165,000 + ($200,000 $15,000) = $1,650,000 FOR INSTRUCTOR USE ONLY Ans:

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY 10-60 Ex. 264 On May 15, Holt's Clothiers borrowed some money on a 4-month note to provide cash during the slow season of the year. The interest rate on the note was 8%. At

Reporting and Analyzing Liabilities FOR INSTRUCTOR USE ONLY Ans: B, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA Solution: $60,000 $4,590 $12,500 $2,250 = $40,660 FOR INSTRUCTOR USE ONLY Ans: B, LO: 3, Bloom:

Achievement Test 10: Chapter 20 Name __________________________ Accounting, 5e Instructor _______________________ Section # _______ Date _________ Part I II III Total Points 20 20 60 100 Score PART I MULTIPLE CHOICE (20 points)

FOR INSTRUCTOR USE ONLY CHAPTER 11 REPORTING AND ANALYZING STOCKHOLDERS EQUITY SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Ite m LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 11. 2 K 21. 3 K 31. 5 K

Reporting and Analyzing Stockholders Equity FOR INSTRUCTOR USE ONLY 11-61 Ex. 235 On January 1 Weiss Corporation had 60,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following transactions occurred: Apr. 1 Issued 10,000 additional

Reporting and Analyzing Stockholders Equity FOR INSTRUCTOR USE ONLY Ans: B, LO: 4, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA Solution: 30,000 $100 = $3,000,000; ($110 $100) 30,000 = $300,000 FOR INSTRUCTOR USE ONLY Ans:

Achievement Test 11: Chapters 21-22 Name __________________________ Accounting, 5e Instructor _______________________ Section # _______ Date _________ Part I II III IV Total Points 26 32 22 20 100 Score PART I MULTIPLE CHOICE (26 points) Instructions: Designate

Achievement Test 12: Chapters 23-24 Name __________________________ Accounting, 5e Instructor _______________________ Section # _______ Date _________ Part I II III IV V Total Points 30 10 30 20 10 100 Score PART I MULTIPLE CHOICE (30

Statement of Cash Flows FOR INSTRUCTOR USE ONLY 12-59 Solution 205 (22-27 min.) 1. BENETEAU CORPORATION Statement of Cash Flows For the Year Ended December 31, 2014 ___________________________________________________________________________ Cash flows from operating activities Net loss ..................................................................................... $(12,000) Adjustments to reconcile net income to net cash provided by operating activities:

Statement of Cash Flows FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 4, Bloom: K, Difficulty: Easy, Min: 10, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: FSA FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 4, Bloom: K, Difficulty: Easy, Min: 10, AACSB: None, AICPA

Statement of Cash Flows FOR INSTRUCTOR USE ONLY Ans: d, LO: 4, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: FSA FOR INSTRUCTOR USE ONLY Ans: d, LO: 4, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA

FOR INSTRUCTOR USE ONLY CHAPTER 12 STATEMENT OF CASH FLOWS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 10. 2 C 19. 2 C 28. 4 C *37.

FOR INSTRUCTOR USE ONLY CHAPTER 13 FINANCIAL ANALYSIS: THE BIG PICTURE SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 10. 3 K 19. 5 K 28. 6,8 K

Financial Analysis: The Big Picture FOR INSTRUCTOR USE ONLY 13-79 Ex. 252 (Cont.) Additional information: 1. Common stock outstanding January 1, 2014, was 30,000 shares, and 40,000 shares were outstanding at December 31, 2014. 2. The market price of Gillman, Inc., stock was $15.86 in 2014. 3. Cash dividends

Financial Analysis: The Big Picture FOR INSTRUCTOR USE ONLY Ans: D, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Performance Measurement FOR INSTRUCTOR USE ONLY Ans: D, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB:

Financial Analysis: The Big Picture FOR INSTRUCTOR USE ONLY 13-61 Solution 230 (5-10 min.) 2014 2013 Increase Net Income $620,000 X 19% 0.19 = $620,000 X X 0.19X = $620,000 X 1.19X = $620,000 X = $521,008 2014 2013 Increase Net Income $620,000 X 19% 0.19 =

Financial Analysis: The Big Picture FOR INSTRUCTOR USE ONLY 13-41 186. The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $ 40,000 Accounts receivable (net)

Managerial Accounting 14 - 41 Solution 167 (1012 min.) (a) Delivery service (product) costs: Indirect materials $ 8,400 Depreciation on delivery equipment 11,200 Dispatcher's salary 5,000 Gas and oil for delivery trucks 3,200 Drivers' salaries 14,000 Delivery equipment repairs 300 Total $ 42,100 (b) Period costs: Property taxes on

CHAPTER 14 MANAGERIAL ACCOUNTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 C 9. 2 K 17. 4 C 25. 6 C sg 33. 3 C 2. 1

Managerial Accounting 14 - 21 113. Ogleby Inc.'s accounting records reflect the following inventories: Dec. 31, 2012 Dec. 31, 2013 Raw materials inventory $120,000 $ 96,000 Work in process inventory 156,000 174,000 Finished goods inventory 150,000 138,000 During 2013, Ogleby purchased $840,000 of raw materials, incurred direct

Managerial Accounting 14 - 53 Solution 180 (1217 min.) (a) $415,000 ($890,000 $280,000 $195,000). (b) $970,000 ($890,000 + $80,000). (c) $895,000 ($970,000 $75,000). (d) $65,000 ($960,000 $895,000). (e) $140,000 ($960,000 $820,000). (f) $130,000 ($640,000 $510,000). (g) $115,000 ($640,000 $525,000). (h) $563,000 ($525,000 + $38,000). (i) $488,000 ($563,000 $75,000). (j)

Final Exam: Chapters 14-24 Name __________________________ Kimmel Accounting, 5e Instructor _______________________ Section # _______ Date _________ Part I II III IV Total Points 54 18 19 14 105 Score PART I MULTIPLE CHOICE (54 points) Instructions: Designate the

CHAPTER 15 JOB ORDER COSTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 8. 2 K 15. 2 K 22. 4 C 29. 6 C 2. 1

Job Order Costing 15 - 55 Ex. 181 Gallagher Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $450,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $475,000 of overhead costs are incurred

Job Order Costing 15 - 41 Ex. 165 (Cont.) Instructions Calculate the balances of the work in process and finished goods inventory accounts at the end of May. Ans: N/A, LO: 2,3, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA

Job Order Costing 15 - 21 101. For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor costs are incurred of which $100,000 is indirect labor. Actual overhead incurred was $180,000. The amount of overhead debited to Work in

Process Costing 16 - 21 92. Conversion cost per unit equals $7.00. Total materials costs are $60,000. Equivalent units are 20,000. How much is the total manufacturing cost per unit? a. $10.00. b. $7.00. c. $4.00. d. $3.00. Ans: A, LO: 6, Bloom: AP, Difficulty: Medium, Min:

CHAPTER 16 PROCESS COSTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 4 K 17. 6 K 25. 7 K sg33. 3 C 2. 1 K

Process Costing 16 - 41 EXERCISES Ex. 159 Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system. (a) Purchased raw materials for $50,000 on account. (b) Raw materials requisitioned for production were: Direct materials

Test Bank for Accounting, Tools for Business Decision Making Fifth Edition 16 - 56 Solution 176 (Cont.) (c) Units transferred out: 110,000 $4.40= $484,000 Units in ending work in process: 30,000 $1.15 = $34,500 18,000 $3.25 = 58,500 $93,000 (c) Units transferred out: 110,000 $4.40= $484,000 Units

Activity-Based Costing FOR INSTRUCTOR USE ONLY 17 - 37 BE 165. (Cont.) Instructions Compute the activity-based overhead rates. Ans: N/A, LO: 4, Bloom: AP, Difficulty: Easy, Min: 5, AACSB: Analytic, AICPA BB: Strategic/Critical Thinking, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Mgmt Solution 165 (5

Activity-Based Costing FOR INSTRUCTOR USE ONLY 17 - 21 88. Wallace Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Wallace has identified an activity cost pool with allocated overhead of $720,000 for which

CHAPTER 17 ACTIVITY-BASED COSTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 7. 4 C 13. 5 K 19. 6 K 25. 7 K 2. 1 K 8. 4

Test Bank for Accounting, Tools for Business Decision Making Fifth Edition FOR INSTRUCTOR USE ONLY 18 - 52 Ex. 187 Erickson, Inc. makes student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $225,000. Variable costs are $15 per unit.

CHAPTER 18 COST-VOLUME-PROFIT SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 2 C 17. 4 K 25. 6 K sg33. 3 K 2. 1 K 10.

Cost-Volume-Profit FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 4, Bloom: AN, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Quantitative Methods Solution 173 (10 min.) A. $300 $180 = $120 B. $120 $300 = 40% C. $600 $210 =

Cost-Volume-Profit FOR INSTRUCTOR USE ONLY Ans: B, LO: 6, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Quantitative Methods Solution: ($420,000 + $100,000) ($25) = $20,800 FOR INSTRUCTOR USE ONLY Ans: B, LO: 6, Bloom: AP, Difficulty:

FOR INSTRUCTOR USE ONLY CHAPTER 19 COST-VOLUME-PROFIT ANALYSIS: ADDITIONAL ISSUES SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 7. 3 K 13. 4 C 19. 5 C a25.

Test Bank for Accounting, Tools for Business Decision Making Fifth Edition FOR INSTRUCTOR USE ONLY 19 - 36 Solution 138 (cont.) Sales Mix Green 25% 60,000 = 15,000 bikes Brown 45% 60,000 = 27,000 bikes Blue 30% 60,000 = 18,000 bikes Ex. 139 DeMont Tax Services provides

Cost-Volume-Profit Analysis: Additional Issues FOR INSTRUCTOR USE ONLY 19 - 21 a95. Companies recognize fixed manufacturing overhead costs as period costs (expenses) when incurred when using a. full costing. b. absorption costing. c. product costing. d. variable costing. Ans: d, LO: 6, Bloom: K, Difficulty: Easy, Min:

A Further Look at Financial Statements FOR INSTRUCTOR USE ONLY Ans: C, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting FOR INSTRUCTOR USE ONLY Ans: C, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB:

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY 2-60 Solution 220 (25 min.) (b) SNYDER CORPORATION Balance Sheet July 31, 2014 _____________________________________________________________________________ Assets Current assets Cash $20,200 Accounts receivable 12,780 Total current assets $32,980 Property, plant, and equipment Equipment 21,000 Less: Accumulated

Achievement Test 2: Chapters 3 and 4 Name __________________________ Accounting Instructor _______________________ Kimmel, Weygandt, and Kieso Section # _______ Date _________ Part I II III IV V Total Points 33 24 24 10 9 100 Score PART I MULTIPLE CHOICE

A Further Look at Financial Statements FOR INSTRUCTOR USE ONLY Ans: D, LO: 2, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting Solution: ($30,000 0) 16,000 = $1.88 FOR INSTRUCTOR USE ONLY Ans: D, LO: 2,

FOR INSTRUCTOR USE ONLY CHAPTER 2 A FURTHER LOOK AT FINANCIAL STATEMENTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. 3 C 23. 5 K 34. 7

Incremental Analysis 20 - 21 91. Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should

Incremental Analysis 20 - 55 Solution 188 (1520 min.) (a) Net Income Make Buy Increase (Decrease) Direct Materials (50,000 $8) $ 400,000 $ -0- $ 400,000 Direct Labor (50,000 $9) 450,000 -0- 450,000 Variable Manufacturing Costs ($450,000 60%) 270,000 -0- 270,000 Fixed Manufacturing Costs 30,000 30,000 -0- Purchase Price

Incremental Analysis 20 - 41 166. All of the following are relevant in deciding whether to eliminate an unprofitable segment except the segment's a. sales. b. variable expenses. c. contribution margin. d. fixed expenses. Ans: D, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA

CHAPTER 20 INCREMENTAL ANALYSIS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 7. 2 C 13. 4 C 19. 6 C 25. 7 C 2. 2 K

Budgetary Planning FOR INSTRUCTOR USE ONLY Ans: A, LO: 3, Bloom: AP, Difficulty: Hard, Min: 5, AACSB: Analytic, AICPA BB: Resource Management, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation Solution: 200,000 + (2 20,000) + [200,000 + (3 20,000)] (.25) [200,000 + (2 20,000)] (.25) =

Budgetary Planning FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 5, Bloom: C, Difficulty: Medium, Min: 20, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 5, Bloom: C, Difficulty: Medium, Min: 20, AACSB: Analytic, AICPA

CHAPTER 21 BUDGETARY PLANNING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 2 C 17. 3 K 25. 4 K sg33. 3 K 2. 1 C

Budgetary Planning FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 25, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation Solution 171 (2530 min.) BUTLER MANUFACTURING Direct Materials BudgetRegular For the Quarter Ended September 30, 2013 July

FOR INSTRUCTOR USE ONLY CHAPTER 22 BUDGETARY CONTROL AND RESPONSIBILITY ACCOUNTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 3 C 17. 3 K 25. 5

Budgetary Planning and Responsibility Accounting FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 3, Bloom: AP, Difficulty: Hard, Min: 15, AACSB: Analytic, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting Solution 182 (1520 min.) CODY CO. Monthly Flexible Manufacturing Overhead Budget Activity level Direct labor hours

Budgetary Planning and Responsibility Accounting FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 6,7, Bloom: AP, Difficulty: Medium, Min: 15, AACSB: Analytic, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting Solution 197 (15 min.) (a) MCKENZIE CO. Real Estate Products Division Responsibility Report 2013 _____________________________________________________________________________ Budget

Budgetary Planning and Responsibility Accounting FOR INSTRUCTOR USE ONLY Ans: D, LO: 5, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation FOR INSTRUCTOR USE ONLY Ans: D, LO: 5, Bloom: C, Difficulty: Easy, Min: 1, AACSB:

Standard Costs and Balanced Scorecard FOR INSTRUCTOR USE ONLY 23 - 41 BE 192 Labor data for making one pound of finished product in Curling Co. are as follows: (1) Price hourly wage rate $11.00, payroll taxes $1.80, and fringe benefits $1.20. (2) Quantityactual production time 1.1 hours, rest periods

Standard Costs and Balanced Scorecard FOR INSTRUCTOR USE ONLY Ans: C, LO: 4, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: Cost Management FOR INSTRUCTOR USE ONLY Ans: C, LO: 4, Bloom: C, Difficulty: Easy, Min: 1, AACSB:

FOR INSTRUCTOR USE ONLY CHAPTER 23 STANDARD COSTS AND BALANCED SCORECARD SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 3 C 17. 3 C 25. 4

Test Bank for Accounting, Tools for Business Decision Making Fifth Edition FOR INSTRUCTOR USE ONLY (a) 1. Direct materials price variance = $36,900 Unfavorable. (AQ AP) (AQ SP) (246,000 $4.15) (246,000 $4.00) = $1,020,900 $984,000 = $36,900 2. Direct materials quantity variance = $32,000 Favorable. (AQ SP) (SQ SP)

Planning for Capital Investments 24-21 99. A project with a profitability index of 1.156 also has net cash flows with a present value of $69,360. The projects internal rate of return was 10%. The initial investment was a. $66,000. b. $80,180. c. $60,000. d. $62,424. Ans:

Test Bank for Accounting, Tools for Business Decision Making Fifth Edition 24-40 Ex. 167 Cepeda Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows. Year AA BB CC

The Accounting Information System FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 3, Bloom: K, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 3, Bloom: K, Difficulty: Medium, Min: 5, AACSB: Analytic,

FOR INSTRUCTOR USE ONLY CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. 3 K 23. 3 K 34. 4 K

The Accounting Information System FOR INSTRUCTOR USE ONLY 3-41 Be. 222 For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance. Increase (+), Decrease (). Debit _Credit_ Normal Balance 1. Salaries and Wages Expense.

The Accounting Information System FOR INSTRUCTOR USE ONLY Ans: B, LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: FSA FOR INSTRUCTOR USE ONLY Ans: B, LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA

Achievement Test 3: Chapters 5 and 6 Name __________________________ Accounting Instructor _______________________ Kimmel, Weygandt, and Kieso Section # _______ Date _________ Part I II III IV V Total Points 30 30 18 12 10 100 Score PART I

Accrual Accounting Concepts FOR INSTRUCTOR USE ONLY Ans: D, LO 5, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting FOR INSTRUCTOR USE ONLY Ans: D, LO 5, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: Analytic,

FOR INSTRUCTOR USE ONLY CHAPTER 4 ACCRUAL ACCOUNTING CONCEPTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. 3 K 23. 3 K 34. 5 K 45.

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY 4-98 Ex. 278 The adjusted trial balance shown below is for Rich Company at the end of its fiscal year: RICH COMPANY Trial Balance March 31, 2014 __________________________________________________________________________ Debit Credit Cash

Accrual Accounting Concepts FOR INSTRUCTOR USE ONLY 4-61 Solution 237 (5 min.) Net Income before Adjustments ($9,200 6,500) $ 2,700 Add: Unearned Revenues $3,400 Accrued Revenues 2,100 5,500 8,200 Subtract: Depreciation Expense 300 Interest Expense 800 Insurance Expense 300 1,400 Net Income after Adjustments $ 6,800 Ans: N/A, LO

Accrual Accounting Concepts FOR INSTRUCTOR USE ONLY 4-81 Solution 263 (5 min.) (a) Rent Expense ................................................................................ 20,000 Prepaid Rent ....................................................................... 20,000 ($120,000 6 = $20,000) (b) & (c) Unearned Ticket Revenue ............................................................. 120,000 Ticket Revenue ................................................................... 120,000 ($600,000 20 = $30,000; $30,000 4 = $120,000) Ans: N/A, LO 4,

Achievement Test 4: Chapters 7 and 8 Name __________________________ Accounting Instructor _______________________ Kimmel, Weygandt, & Kieso Section # _______ Date _________ Part I II III IV V VI Total Points 30 12 18 11 20 9 100 Score

Accrual Accounting Concepts FOR INSTRUCTOR USE ONLY Ans: D, LO 3, BT: K, Difficulty: Easy, TOT: 1 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting FOR INSTRUCTOR USE ONLY Ans: D, LO 3, BT: K, Difficulty: Easy, TOT: 1 min., AACSB: Analytic,

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY 5-58 Ex. 228 The adjusted trial balance of McCoy Company included the following selected accounts: Debit Credit Sales Revenue $645,000 Sales Returns and Allowances $ 50,000 Sales Discounts 9,500 Cost of

Merchandising Operations FOR INSTRUCTOR USE ONLY 5-41 Answers to Multiple Choice Questions 53. c 73. b 93. c 113. b 133. c 153. c 173. d 193. c 54. c 74. d 94. a 114. d 134. b 154. a 174. a 194. b 55. b 75. d

FOR INSTRUCTOR USE ONLY CHAPTER 5 MERCHANDISING OPERATIONS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. 1 K 23. 3 K 34. 4 C 45.

Achievement Test 5: Chapters 9 and 10 Name __________________________ Accounting Instructor _______________________ Kimmel, Weygandt, & Kieso Section # _______ Date _________ Part I II III IV V V Total Points 26 6 28 9 16 15 100 Score

Merchandising Operations FOR INSTRUCTOR USE ONLY Ans: C, LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Decision Modeling, AICPA PC: Problem Solving, IMA: Business Economics FOR INSTRUCTOR USE ONLY Ans: C, LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None,

Achievement Test 6: Chapters 11-13 Name __________________________ Accounting Instructor _______________________ Kimmel, Weygandt, & Kieso Section # _______ Date _________ Part I II III IV V VI VII Total Points 36 6 6 10 12 10 20 100 Score

FOR INSTRUCTOR USE ONLY CHAPTER 6 REPORTING AND ANALYZING INVENTORY SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 10. 1 K 19. 3 K 28. 3 K 37.

Reporting and Analyzing Inventory FOR INSTRUCTOR USE ONLY 6-75 *Ex. 222 Condensed income statements for Werly Corporation are shown below for two years. 2013 2014 Sales $75,000 $90,000 Cost of Goods Sold 45,000 54,000 Gross Profit $30,000 $36,000 Operating Expense 15,000 15,000

Reporting and Analyzing Inventory FOR INSTRUCTOR USE ONLY Ans: C, LO: 2, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting Solution: (30 $120) + [(120 + 84 30) $112] = $23,088 FOR INSTRUCTOR USE ONLY Ans:

Reporting and Analyzing Inventory FOR INSTRUCTOR USE ONLY 6-61 Solution 207 (Cont.) (c) There are 120 units in ending inventory. They are comprised of the first units purchased when LIFO is assumed. 3/1 100 @ $40 = $4,000 3/3 20 @ $50 = 1,000 120

Reporting and Analyzing Inventory FOR INSTRUCTOR USE ONLY Ans: C, LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting FOR INSTRUCTOR USE ONLY Ans: C, LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA

FOR INSTRUCTOR USE ONLY CHAPTER 7 FRAUD, INTERNAL CONTROL, AND CASH SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. 2 K 17. 2 K 25. 4

Fraud, Internal Control, and Cash FOR INSTRUCTOR USE ONLY 7-41 *199. A petty cash fund should be replenished a. every day. b. at the end of every accounting period. c. once a year. d. as soon as an expense is paid from the fund. Ans: B, LO: 9,

Fraud, Internal Control, and Cash FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 10, AACSB:

Fraud, Internal Control, and Cash FOR INSTRUCTOR USE ONLY Ans: A, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: FSA FOR INSTRUCTOR USE ONLY Ans: A, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None,

Achievement Test 7: Chapters 14-15 Name __________________________ Accounting, 5e Instructor _______________________ Section # _______ Date _________ Part I II III IV Total Points 30 20 22 28 100 Score PART I MULTIPLE CHOICE (30 points) Instructions:

Reporting and Analyzing Receivables FOR INSTRUCTOR USE ONLY Ans: C, LO: 9, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: None, AICPA PC: None, IMA: Business Economics FOR INSTRUCTOR USE ONLY Ans: C, LO: 9, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None,

Reporting and Analyzing Receivables FOR INSTRUCTOR USE ONLY Ans: C, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA Solution: ($200,000 .06) $2,000 = $10,000 FOR INSTRUCTOR USE ONLY Ans: C, LO: 3, Bloom: AP,

FOR INSTRUCTOR USE ONLY CHAPTER 8 REPORTING AND ANALYZING RECEIVABLES SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. 3 C 23. 3 K 34. 4 K

Achievement Test 8: Chapters 16-17 Name __________________________ Accounting, 5e Instructor _______________________ Section # _______ Date _________ Part I II III IV V Total Points 30 10 25 20 15 100 Score PART I MULTIPLE CHOICE (30 points)

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA Solution 234 (5 min.) (a) Accounts Receivable Amount %

FOR INSTRUCTOR USE ONLY CHAPTER 9 REPORTING AND ANALYZING LONG-LIVED ASSETS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOMS TAXOMONY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 10. 2 K 19. 4 K 28. 5 K

Reporting and Analyzing Long-Lived Assets FOR INSTRUCTOR USE ONLY Ans: A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA Solution: [($80,000 $20,000) 5] 3/12 = $3,000 FOR INSTRUCTOR USE ONLY Ans: A, LO: 3,

Reporting and Analyzing Long-Lived Assets FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 20, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA FOR INSTRUCTOR USE ONLY Ans: N/A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 20, AACSB:

Achievement Test 9: Chapters 18-19 Name __________________________ Accounting, 5e Instructor _______________________ Section # _______ Date _________ Part I II III IV V VI Total Points 28 10 12 14 24 12 100 Score PART I MULTIPLE CHOICE

Reporting and Analyzing Long-Lived Assets FOR INSTRUCTOR USE ONLY Ans: C, LO: 8, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting Solution: $1,000,000 + $2,500,000 = $3,500,000 FOR INSTRUCTOR USE ONLY Ans: C, LO: 8, Bloom: