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FOR INSTRUCTOR USE ONLY APPENDIX D TIME VALUE OF MONEY SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 5. […]

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition D – 14 60. Dodd Company is considering an investment, which will return a lump sum of $675,000 four years from now. Below is some of the time value […]

Reporting and Analyzing Investments E-21 90. Hardin Park Company had these transactions pertaining to stock investments Feb. 1 Purchased 2,500 shares of Raley Company (10%) for $44,500 cash. June 1 Received cash dividends of $1 per share on Raley stock. […]

Reporting and Analyzing Investments FOR INSTRUCTOR USE ONLY E-41 Solution 173 (8–12 minutes) Be. 174 At January 1, 2014, the available-for-sale securities portfolio held by Darma Corporation consisted of the following investments: 1. 2,500 shares of H2 common stock purchased […]

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY E-52 Solution 186 (15-20 min.) Ex. 187 On January 5, 2012, JBC Company purchased the following stock investments: 300 shares Getz Corporation common stock for […]

FOR INSTRUCTOR USE ONLY APPENDIX E REPORTING AND ANALYZING INVESTMENTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. […]

APPENDIX F PAYROLL ACCOUNTING SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S 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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

APPENDIX J PRICING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S 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 […]

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 […]

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 PART I […]

Introduction to Financial Statements FOR INSTRUCTOR USE ONLY 1-55 Ex. 199 The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Bates Corporation and Wilson Enterprises, are presented below for 2014. Bates Corporation […]

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 PART […]

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 ……………………………….. […]

FOR INSTRUCTOR USE ONLY CHAPTER 1 INTRODUCTION TO FINANCIAL STATEMENTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 9. […]

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 […]

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 […]

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 – […]

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 …………………….. […]

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 […]

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 […]

Introduction to Financial Statements 1-21 116. Which financial statement is prepared first? a. Balance sheet b. Income statement c. Retained earnings statement d. Statement of cash flows Ans: B, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA […]

FOR INSTRUCTOR USE ONLY CHAPTER 10 REPORTING AND ANALYZING LIABILITIES SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 15. […]

Reporting and Analyzing Liabilities 10–41 207. In a recent year Hart Corporation had net income of $125,000, interest expense of $30,000, and tax expense of $40,000. What was Hart Corporation’s times interest earned for the year? a. 6.50 b. 4.17 […]

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. […]

Reporting and Analyzing Liabilities 10–21 111. Tina’s Boutique has total receipts for the month of $24,255 including sales taxes. If the sales tax rate is 5%, what are Tina’s sales for the month? a. $23,043 b. $23,100 c. $24,255 d. […]

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) Instructions: Designate the best answer for […]

FOR INSTRUCTOR USE ONLY CHAPTER 11 REPORTING AND ANALYZING STOCKHOLDERS’ EQUITY SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Ite m LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 […]

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, […]

Reporting and Analyzing Stockholders’ Equity 11–21 108. Treasury shares plus outstanding shares equal a. authorized stock. b. issued stock. c. unissued stock. d. distributable stock. Ans: B, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory […]

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 the best […]

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 points) Instructions: Designate […]

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 […]

Statement of Cash Flows 12–41 Be. 187 Lake Norman Company reported net income of $225,000 for the current year. Depreciation recorded on buildings and equipment amounted to $75,000 for the year. Balances of the current asset and current liability accounts […]

Statement of Cash Flows 12–21 102. Accounts receivable arising from sales to customers amounted to $120,000 and $105,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $407,000. Exclusive of […]

FOR INSTRUCTOR USE ONLY CHAPTER 12 STATEMENT OF CASH FLOWS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 10. […]

FOR INSTRUCTOR USE ONLY CHAPTER 13 FINANCIAL ANALYSIS: THE BIG PICTURE SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 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, […]

Financial Analysis: The Big Picture 13–21 100. Assume the following sales data for a company: 2015 $960,000 2014 720,000 2013 600,000 If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014? a. 60% […]

Financial Analysis: The Big Picture FOR INSTRUCTOR USE ONLY 13–61 Solution 230 (5-10 min.) Be. 231 Horizontal analysis (trend analysis) percentages for Omega Company’s sales, cost of goods sold, and expenses are listed here. Horizontal Analysis 2015 2014 2013 Sales […]

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 […]

Managerial Accounting 14 – 41 Solution 167 (10–12 min.) Ex. 168 For each item listed below, indicate in the space to the left whether the item would be considered a product cost or a period cost for a manufacturing company. […]

CHAPTER 14 MANAGERIAL ACCOUNTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S 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. […]

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 […]

Managerial Accounting 14 – 53 Solution 180 (12–17 min.) Ex. 181 Fill in the missing information on the cost of goods manufactured schedule of Noland Manufacturing Company: NOLAND MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Year Ended December […]

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 best […]

CHAPTER 15 JOB ORDER COSTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S 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 […]

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. […]

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. Ex. 166 The gross earnings of factory workers for Dinkel Company during […]

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 […]

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. 93. Physical […]

CHAPTER 16 PROCESS COSTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S 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. […]

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 […]

Test Bank for Accounting, Tools for Business Decision Making Fifth Edition 16 – 56 Solution 176 (Cont.) Ex. 177 The Polishing Department of Estaban Company has the following production and manufacturing cost data for September. Materials are entered at the […]

Activity-Based Costing FOR INSTRUCTOR USE ONLY 17 – 37 BE 165. (Cont.) Instructions Compute the activity-based overhead rates. BE 166 Tunes & More, Inc. manufactures speakers and receivers and uses activity-based costing. The following information is available: Expected Use of […]

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 […]

CHAPTER 17 ACTIVITY-BASED COSTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S 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. […]

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 […]

CHAPTER 18 COST-VOLUME-PROFIT SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S 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 […]

Cost-Volume-Profit 18 – 41 Ex. 172 The Bradshaw Law Office has the following monthly telephone records and costs: Calls Costs 2,000 $2,400 1,500 2,000 2,200 2,600 2,500 2,800 2,300 2,700 1,700 2,200 Instructions Identify the fixed and variable cost elements […]

Cost-Volume-Profit 18 – 21 110. Nelson Manufacturing has the following data: Variable costs are 60% of the unit selling price. The contribution margin ratio is 40%. The contribution margin per unit is $500. The fixed costs are $300,000. Which of […]

FOR INSTRUCTOR USE ONLY CHAPTER 19 COST-VOLUME-PROFIT ANALYSIS: ADDITIONAL ISSUES SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 7. […]

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% × […]

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. a96. Under […]

A Further Look at Financial Statements 2-41 183. Different companies using the same accounting principles is an application of a. consistency. b. materiality. c. full disclosure. d. comparability. Ans: D, LO: 7, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, […]

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition FOR INSTRUCTOR USE ONLY 2-60 Solution 220 (25 min.) Ex. 221 These items are taken from the financial statements of Drew Corporation for 2014. Retained earnings (beginning of year) […]

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 […]

A Further Look at Financial Statements 2-21 91. Use the following data to calculate the current ratio. Eddy Auto Supplies Balance Sheet December 31, 2014 Cash $ 84,000 Accounts payable $ 110,000 Accounts receivable 80,000 Salaries and wages payable 20,000 […]

FOR INSTRUCTOR USE ONLY CHAPTER 2 A FURTHER LOOK AT FINANCIAL STATEMENTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 […]

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 […]

Incremental Analysis 20 – 55 Ex. 189 Larkin, Inc. uses 1,000 units of the component NJF1 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows: Direct materials $65 Direct labor […]

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. Answers to Multiple Choice Questions Item […]

CHAPTER 20 INCREMENTAL ANALYSIS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S 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. […]

Budgetary Planning 21 – 21 103. Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. They have, and desire, a 25% ending inventory of […]

Budgetary Planning 21 – 55 Ex. 187 Clay Co.’s projected sales are as follows: August $400,000 September $450,000 October $550,000 Clay estimates that it will collect 30% in the month of sale, 50% in the month after the sale, and […]

CHAPTER 21 BUDGETARY PLANNING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S 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. […]

Budgetary Planning 21 – 41 Ex. 171 Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows: Units of Product 2013 Regular Deluxe Total July 10,000 15,000 25,000 August 6,000 10,000 […]

FOR INSTRUCTOR USE ONLY CHAPTER 22 BUDGETARY CONTROL AND RESPONSIBILITY ACCOUNTING SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K […]

Budgetary Planning and Responsibility Accounting 22 – 41 Ex. 182 Cody Co. developed its annual manufacturing overhead budget for its master budget for 2013 as follows: Expected annual operating capacity 120,000 Direct Labor Hours Variable overhead costs Indirect labor $600,000 […]

Budgetary Planning and Responsibility Accounting 22 – 53 Solution 196 (Cont.) (b) DANNER CO. Women’s Shoe Division Responsibility Report For the Month Ended June 30, 2013 _____________________________________________________________________________ Difference Favorable F Budget Actual Unfavorable U Sales $800,000 $800,000 $ 0 Variable […]

Budgetary Planning and Responsibility Accounting 22 – 21 104. A cost center a. only incurs costs and does not directly generate revenues. b. incurs costs and generates revenues. c. is a responsibility center of a company which incurs losses. d. […]

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 […]

Standard Costs and Balanced Scorecard 23 – 21 104. Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, […]

FOR INSTRUCTOR USE ONLY CHAPTER 23 STANDARD COSTS AND BALANCED SCORECARD SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K […]

Test Bank for Accounting, Tools for Business Decision Making Fifth Edition 23 – 58 Solution 216 (40–45 min.) FOR INSTRUCTOR USE ONLY (a) 1. Direct materials price variance = $36,900 Unfavorable. (AQ × AP) – (AQ × SP) (246,000 × […]

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 project’s internal rate of return was 10%. The initial investment was a. $66,000. b. […]

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 […]

The Accounting Information System 3-61 Ex. 242 For the accounts listed below, indicate if the normal balance of the account is a debit or credit. Normal Balance Accounts Debit or Credit 1. Service Revenue _________________ 2. Rent Expense _________________ 3. […]

FOR INSTRUCTOR USE ONLY CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. […]

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 […]

The Accounting Information System 3-21 120. For the basic accounting equation to stay in balance, each transaction recorded must a. affect two or less accounts. b. affect two or more accounts. c. always affect exactly two accounts. d. affect the […]

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 — MULTIPLE […]

Accrual Accounting Concepts 4-41 purchased supplies for $950 and consumed supplies of $700. If no adjusting entry is made for supplies: a. stockholders’ equity will be overstated by $700. b. expenses will be understated by $950. c. assets will be […]

FOR INSTRUCTOR USE ONLY CHAPTER 4 ACCRUAL ACCOUNTING CONCEPTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. 3 […]

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 […]

Accrual Accounting Concepts FOR INSTRUCTOR USE ONLY 4-61 Solution 237 (5 min.) Be. 238 For each of the following oversights, state whether total assets will be understated (U), overstated (O), or no affect (NA). _____ 1. Failure to record revenue […]

Accrual Accounting Concepts FOR INSTRUCTOR USE ONLY 4-81 Solution 263 (5 min.) Ex. 264 Prepare adjusting entries for the following transactions. Omit explanations. 1. Depreciation on equipment is $1,340 for the accounting period. 2. Interest owed on a loan but […]

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 PART I […]

Accrual Accounting Concepts 4-21 89. Which of the following would be unethical? a. Recording accrued salaries and wages expense. b. Recording accrued interest revenue. c. Recording backdated revenue. d. Recording prepaid expense adjustments. Ans: C, LO 2, BT: K, Difficulty: […]

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 $ […]

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 […]

FOR INSTRUCTOR USE ONLY CHAPTER 5 MERCHANDISING OPERATIONS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S 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 […]

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 PART I […]

Merchandising Operations 5-21 118. The collection of an $900 account within the 2 percent discount period will result in a a. debit to Sales Discounts for $18. b. debit to Accounts Receivable for $882. c. credit to Cash for $882. […]

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 PART I […]

FOR INSTRUCTOR USE ONLY CHAPTER 6 REPORTING AND ANALYZING INVENTORY SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 10. […]

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 […]

Reporting and Analyzing Inventory 6-21 86. Which of the following terms best describes the assumption made in applying the four inventory methods? a. Goods flow b. Cost flow c. Asset flow d. Physical flow Ans: B, LO: 2, Bloom: K, […]

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 […]

Reporting and Analyzing Inventory 6-41 168. Redeker Company had the following records: 2014 2013 2012 Ending inventory $34,580 $32,650 $30,490 Cost of goods sold 182,000 163,500 174,200 What is Redeker’s average days in inventory for 2014? (rounded) a. 67.6 days […]

FOR INSTRUCTOR USE ONLY CHAPTER 7 FRAUD, INTERNAL CONTROL, AND CASH SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K […]

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 […]

Fraud, Internal Control, and Cash 7-61 Solution 228 (10 min.) REMINGTON COMPANY Bank Reconciliation September 30 Cash balance per bank statement …………………………………………… $24,635 Add: Deposits in transit ………………………………………………………….. 7,195 31,830 Less: Outstanding checks ………………………………………………………. 2,575 Adjusted cash balance per bank […]

Fraud, Internal Control, and Cash 7-21 111. Which of the following would be deducted from the balance per bank on a bank reconciliation? a. Outstanding checks. b. Deposits in transit. c. Notes collected by the bank. d. Service charges. Ans: […]

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: Designate the best […]

Reporting and Analyzing Receivables 8-41 198. The sale of receivables by a business a. indicates that the business is in financial difficulty. b. is generally the major revenue item on its income statement. c. is an indication that the business […]

Reporting and Analyzing Receivables 8-21 110. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $45,000. If the balance of the Allowance for Doubtful Accounts is $11,000 debit before adjustment what is the amount of bad […]

FOR INSTRUCTOR USE ONLY CHAPTER 8 REPORTING AND ANALYZING RECEIVABLES SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K 12. […]

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) Instructions: Designate […]

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition 8-60 Solution 233 (Cont.) (c) Allowance for Doubtful Accounts ………………………………………….. 1,000 Accounts Receivable—A. Myers …………………………………. 1,000 Before Write-off After Write-off Accounts Receivable $145,000 $144,000 Less: Allowance for Doubtful Accounts […]

FOR INSTRUCTOR USE ONLY CHAPTER 9 REPORTING AND ANALYZING LONG-LIVED ASSETS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXOMONY Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements 1. 1 K […]

Reporting and Analyzing Long-Lived Assets 9-21 102. Which of the following methods of computing depreciation is production based? a. Straight-line. b. Declining-balance. c. Units-of-activity. d. None of these answer choices are correct. Ans: C, LO: 3, Bloom: K, Difficulty: Easy, […]

Reporting and Analyzing Long-Lived Assets 9-61 Ex. 243 (Cont.) Instructions Journalize all entries required as a result of the above transactions. Tinker Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2014. Ans: N/A, LO: […]

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 (28 points) […]

Reporting and Analyzing Long-Lived Assets 9-41 194. Goodwill a. may be expensed upon purchase if desired. b. can be sold by itself to another company. c. can be purchased and charged directly to stockholders’ equity. d. is only recorded when […]