Financial Accounting: Tools for Business Decision Making 5th Edition

APPENDIX DTIME VALUE OF MONEYSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’STAXONOMYItemLOBTItemLO1.2.3.4.1111KKKK5.6.7.8.223321.22.23.24.25.26.27.28.29.30.31.32.1111222,322222KKAPCAPAPAPKAPKKAP33.34.35.36.37.38.39.40.41.42.43.44.33333334445580.81.82.83.222,32,3APAPAPAP84.85.86.87.335598.99.12KK100.101.33106.1-6KBTItem LOBTItemTrue-False StatementsK9.4K13.K10.4K14.K11.5K15.K12.5K16.Multiple Choice QuestionsAP45.5AP57.AP46.5AP58.K47.5K59.AP48.5AP60.C49.5AP61.AP50.5AP62.K51.5C63.K52.5AP64.K53.5AP65.K54.5AP66.AP55.5AP67.AP56.5AP68.Brief ExercisesAP88.5AP92.AP89.5AP93.AP90.6AP94.AP91.6AP95.Completion StatementsK102.4K104.K103.5K105.MatchingLOBTItemLOBT6666KKKK17.18.19.20.7777KCKK555566666766APAPAPAPAPAPAPAPKAPAPAP69.70.71.72.73.74.75.76.77.78.79.67777777777APAPAPKKKKAPAPAPAP6,76,777APAPAPAP96.97.77APAP67KKSUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPELearning Objective 1ItemTypeItemTypeItemTypeItemTypeItemType1.2.TFTF3.4.TFTF21.22.MCMC23.24.MCMC98.CMCBeBe82.Be83.BeMCBeBe84.Be85.Be100.CItemType99.C101.CLearning Objective 25.6.25.TFTFMC26.27.28.MCMCMC29.30.31.MCMCMC32.80.81.Learning Objective 37.8.27.TFTFMC33.34.35.MCMCMC36.37.38.MCMCMC39.82.83.FOR INSTRUCTOR USE ONLYTest Bank for Accounting: Tools for Business Decision Making, Fifth EditionD-2Learning Objective 4ItemTypeItemTypeItemTypeItemTypeItemTypeItemType9.TF10.TF40.MC41.MC42.MC102.CMCMCMCMCMC86.Be87.88.89.103.BeBeBeCMCMCMC69.MC92.Be90.91.BeBe93.BeMCMCBeBe96.Be97.105.BeCLearning Objective 511.12.43.44.45.TFTFMCMCMC46.47.48.49.50.MCMCMCMCMC51.52.53.54.55.MCMCMCMCMC56.57.58.59.60.Learning Objective 613.14.15.TFTFTF16.61.62.TFMCMC63.64.65.MCMCMC66.67.68.Learning Objective

D - 1460.Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionDodd Company is considering an investment, which will return a lump sum of $675,000four years from now. Below is some of the time value of money information that Dodd hascompiled that might help in planning compounded interest decisions.Present

APPENDIX DTIME VALUE OF MONEYSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’STAXONOMYItemLOBTItemLO1.2.3.4.1111KKKK5.6.7.8.223321.22.23.24.25.26.27.28.29.30.31.32.1111222,322222KKAPCAPAPAPKAPKKAP33.34.35.36.37.38.39.40.41.42.43.44.33333334445580.81.82.83.222,32,3APAPAPAP84.85.86.87.335598.99.12KK100.101.33106.1-6KBTItem LOBTItemTrue-False StatementsK9.4K13.K10.4K14.K11.5K15.K12.5K16.Multiple Choice QuestionsAP45.5AP57.AP46.5AP58.K47.5K59.AP48.5AP60.C49.5AP61.AP50.5AP62.K51.5C63.K52.5AP64.K53.5AP65.K54.5AP66.AP55.5AP67.AP56.5AP68.Brief ExercisesAP88.5AP92.AP89.5AP93.AP90.6AP94.AP91.6AP95.Completion StatementsK102.4K104.K103.5K105.MatchingLOBTItemLOBT6666KKKK17.18.19.20.7777KCKK555566666766APAPAPAPAPAPAPAPKAPAPAP69.70.71.72.73.74.75.76.77.78.79.67777777777APAPAPKKKKAPAPAPAP6,76,777APAPAPAP96.97.77APAP67KKSUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPELearning Objective 1ItemTypeItemTypeItemTypeItemTypeItemType1.2.TFTF3.4.TFTF21.22.MCMC23.24.MCMC98.CMCBeBe82.Be83.BeMCBeBe84.Be85.Be100.CItemType99.C101.CLearning Objective 25.6.25.TFTFMC26.27.28.MCMCMC29.30.31.MCMCMC32.80.81.Learning Objective 37.8.27.TFTFMC33.34.35.MCMCMC36.37.38.MCMCMC39.82.83.FOR INSTRUCTOR USE ONLYTest Bank for Accounting: Tools for Business Decision Making, Fifth EditionD-2Learning Objective 4ItemTypeItemTypeItemTypeItemTypeItemTypeItemType9.TF10.TF40.MC41.MC42.MC102.CMCMCMCMCMC86.Be87.88.89.103.BeBeBeCMCMCMC69.MC92.Be90.91.BeBe93.BeMCMCBeBe96.Be97.105.BeCLearning Objective 511.12.43.44.45.TFTFMCMCMC46.47.48.49.50.MCMCMCMCMC51.52.53.54.55.MCMCMCMCMC56.57.58.59.60.Learning Objective 613.14.15.TFTFTF16.61.62.TFMCMC63.64.65.MCMCMC66.67.68.Learning Objective

D - 1460.Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionDodd Company is considering an investment, which will return a lump sum of $675,000four years from now. Below is some of the time value of money information that Dodd hascompiled that might help in planning compounded interest decisions.Present

Reporting and Analyzing Investments90.E-21Hardin Park Company had these transactions pertaining to stock investmentsFeb. 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.Oct. 1 Sold 1,000 shares of Raley stock for 19,500.Dec. 1 Received cash dividends of $2

reporting and analyzing investments e-41 solution 173 (8–12 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…………..

Reporting and Analyzing Investments90.E-21Hardin Park Company had these transactions pertaining to stock investmentsFeb. 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.Oct. 1 Sold 1,000 shares of Raley stock for 19,500.Dec. 1 Received cash dividends of $2

1. identify the reasons corporations invest in stocks and debt securities. corporations invest for three common reasons: (a) they have excess cash. (b) they view

reporting and analyzing investments e-41 solution 173 (8–12 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…………..

Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionE-52Solution 186(a)Feb.5Mar. 30Sept. 9(b)(15-20 min.)Cash........................................................................7,900Stock Investments .............................................Gain on Sale of Stock Investments ...................(To record sale of 50 shares of Interstate commonstock)Stock Investments ......................................................Cash ..................................................................(To record purchase of 25 shares of Georgiacommon stock)850Stock Investments ......................................................Cash ..................................................................(To record purchase of 50 shares

1. identify the reasons corporations invest in stocks and debt securities. corporations invest for three common reasons: (a) they have excess cash. (b) they view

Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionE-52Solution 186(a)Feb.5Mar. 30Sept. 9(b)(15-20 min.)Cash........................................................................7,900Stock Investments .............................................Gain on Sale of Stock Investments ...................(To record sale of 50 shares of Interstate commonstock)Stock Investments ......................................................Cash ..................................................................(To record purchase of 25 shares of Georgiacommon stock)850Stock Investments ......................................................Cash ..................................................................(To record purchase of 50 shares

APPENDIX FPAYROLL ACCOUNTINGSUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMYItem1.2.11.12.13.14.LO111111BTKKKAPAPKItem3.4.15.16.17.18.LOBTItemLOBTItemLOBTItemLOBT12True-False StatementsK5.2K7.K6.2K8.33CC9.10.33CK1111Multiple Choice QuestionsAP19.2C23.K20.2C24.K21.2K25.C22.2K26.3333KKKK27.3KBrief Exercises28.30.31.36.11,21,21APAPAPK29.32.33.37.1,21,222ANAPAPExercises34.2AP35.3APCompletion StatementsK38.2KMatching: 39, Short Answer: 40SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPEItemTypeItemTypeItem1.2.3.TFTFTF11.12.13.MCMCMC14.15.16.4.5.6.TFTFTF19.20.21.MCMCMC22.29.30.7.8.TFTF9.10.TFTF23.24.Note: TF = True-FalseMC = Multiple ChoiceBe = Brief ExerciseMatching: 39, Short Answer: 40TypeItemTypeItemLearning Objective 1MC17. MC29.MC18. MC30.MC28. Be31.Learning Objective 2MC31. Ex34.Ex32. Ex37.Ex33. Ex38.Learning Objective 3MC25.

3. indicate how a multi-column journal is posted. in posting a multi-column journal: (a) all column totals except for the other accounts column are posted once at the end of the month to the account title specified in the column heading. (b) the total of the other

3. indicate how a multi-column journal is posted. in posting a multi-column journal: (a) all column totals except for the other accounts column are posted once at the end of the month to the account title specified in the column heading. (b) the total of the other

3. (a) the numbers in parentheses under the bottom line of the journal indicate that these column totals have been posted to the general ledger

3. (a) the numbers in parentheses under the bottom line of the journal indicate that these column totals have been posted to the general ledger

1. identify the characteristics of the partnership form of business organization. the principal characteristics of a partnership are (a) association of individuals, (b) mutual agency, (c) limited life, (d) unlimited liability, and (e) co-ownership of property.

APPENDIX IACCOUNTING FOR SOLE PROPRIETORSHIPSSUMMARY OF QUESTIONS BY LEARNING OBJECTIVESItemLOBTItemLOBTItemLOBTItemLOBTItemLOBT4444KKKK17.18.44KK444444KKKCKK43.44.45.444APAPAPTrue-False Statements1.2.3.4.1222KKKK5.6.7.8.2223KKKK9.10.11.12.3444KKKK13.14.15.16.Multiple Choice Questions19.20.21.22.23.24.111122KCKKKC25.26.27.28.29.30.222222KKCCKK31.32.33.34.35.36.222233CKCCKK37.38.39.40.41.42.Brief Exercises46.47.22APAP48.49.22APAP50.3KSUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPEItem Type Item Type Item Type Item Type Item Type Item Type Item TypeLearning Objective 11.TF19.MC20.MC21.MC22.MC2.3.4.TFTFTF5.6.7.TFTFTF23.24.25.8.TF9.TF35.10.11.12.TFTFTF13.14.15.TFTFTF16.17.18.Note: TF = True-FalseMC = Multiple ChoiceLearning Objective 2MC26.MC29.MC27.MC30.MC28.MC31.Learning Objective 3MC36.MC50.Learning Objective 4TF37.MC40.TF38.MC41.TF39.MC42.C = CompletionEx =

APPENDIX JPRICINGSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’STAXONOMYItemLOBTItemLOBT1.2.3.4.5.11122CKKKC6.7.8.9.10.22333CCKKKItemLOBTItemLOBT44455KCKKC98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.444444444444444444444444155.156.157.172.173.174.175.ItemLOBT21.22.23.24.25.66666CKKKCAPAPAPAPAPAPAPAPAPCKKCKCKCKCCKCKAP122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.140.141.142.143.144.145.444556666666666666666666APAPAPCKKKKKKCKKKCAPAPAPAPAPAPAPAPAP444APAPAP158.159.66APAP4444ANANANAN176.177.66APAPTrue-False Statements11.12.13.14.15.34444KKKCC16.17.18.19.20.Multiple Choice Questions26.27.28.29.30.31.32.33.34.35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.111111111111111222222222KKKCCKKKKCAPAPAPAPAPKKAPAPAPAPAPAPAP50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.222222222222222333333333APAPAPAPCCKKCAPAPCKAPAPKKCCKAPAPAPK146.147.148.122APAPAP149.150.151.222APAPAP74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.333333333333344444444444APAPAPAPAPAPAPKKKAPAPAPKKKCAPKKKKKCBrief Exercises152.153.154.333APAPAPExercises160.161.162.163.a1112APAPAPAP164.165.166.167.2223APAPAPAP168.169.170.171.3344APAPANANThis question covers a topic in an Appendix to the chapter.J-2Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionCompletion Statements178.179.12KK180.181.23KK182.183.44KK184.185.44KK186.56a187.KKSUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPEItemTypeItemTypeItem1.2.3.26.TFTFTFMC27.28.29.30.MCMCMCMC31.32.33.34.4.5.6.7.41.42.TFTFTFTFMCMC43.44.45.46.47.48.MCMCMCMCMCMC49.50.51.52.53.54.8.9.10.11.65.TFTFTFTFMC66.67.68.69.70.MCMCMCMCMC71.72.73.74.75.12.13.14.15.16.17.18.87.88.TFTFTFTFTFTFTFMCMC89.90.91.92.93.94.95.96.97.MCMCMCMCMCMCMCMCMC98.99.100.101.102.103.104.105.106.19.TF20.TF125.21.22.23.24.25.TFTFTFTFTF127.128.129.130.131.MCMCMCMCMC132.133.134.135.136.TypeItemTypeItemLearning Objective 1MC35. MC39.MC36. MC40.MC37. MC146.MC38. MC160.Learning Objective 2MC55. MC61.MC56. MC62.MC57.

1. calculate the appropriate transfer price and indicate whether the printing should be done internally by printpro under each of the following situations: a. printpro has available capacity. b. printpro has no available capacity

Pricing95.J - 21Assume the Thread Division has excess capacity. The Garment Division wants theThread Division to furnish them additional spools of thread that could be made using theexcess capacity. In a negotiated transfer price, the Thread Division should accept as aminimum any transfer price that exceeds thea. total cost of

APPENDIX JPRICINGSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’STAXONOMYItemLOBTItemLOBT1.2.3.4.5.11122CKKKC6.7.8.9.10.22333CCKKKItemLOBTItemLOBT44455KCKKC98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.444444444444444444444444155.156.157.172.173.174.175.ItemLOBT21.22.23.24.25.66666CKKKCAPAPAPAPAPAPAPAPAPCKKCKCKCKCCKCKAP122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.140.141.142.143.144.145.444556666666666666666666APAPAPCKKKKKKCKKKCAPAPAPAPAPAPAPAPAP444APAPAP158.159.66APAP4444ANANANAN176.177.66APAPTrue-False Statements11.12.13.14.15.34444KKKCC16.17.18.19.20.Multiple Choice Questions26.27.28.29.30.31.32.33.34.35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.111111111111111222222222KKKCCKKKKCAPAPAPAPAPKKAPAPAPAPAPAPAP50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.222222222222222333333333APAPAPAPCCKKCAPAPCKAPAPKKCCKAPAPAPK146.147.148.122APAPAP149.150.151.222APAPAP74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.333333333333344444444444APAPAPAPAPAPAPKKKAPAPAPKKKCAPKKKKKCBrief Exercises152.153.154.333APAPAPExercises160.161.162.163.a1112APAPAPAP164.165.166.167.2223APAPAPAP168.169.170.171.3344APAPANANThis question covers a topic in an Appendix to the chapter.J-2Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionCompletion Statements178.179.12KK180.181.23KK182.183.44KK184.185.44KK186.56a187.KKSUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPEItemTypeItemTypeItem1.2.3.26.TFTFTFMC27.28.29.30.MCMCMCMC31.32.33.34.4.5.6.7.41.42.TFTFTFTFMCMC43.44.45.46.47.48.MCMCMCMCMCMC49.50.51.52.53.54.8.9.10.11.65.TFTFTFTFMC66.67.68.69.70.MCMCMCMCMC71.72.73.74.75.12.13.14.15.16.17.18.87.88.TFTFTFTFTFTFTFMCMC89.90.91.92.93.94.95.96.97.MCMCMCMCMCMCMCMCMC98.99.100.101.102.103.104.105.106.19.TF20.TF125.21.22.23.24.25.TFTFTFTFTF127.128.129.130.131.MCMCMCMCMC132.133.134.135.136.TypeItemTypeItemLearning Objective 1MC35. MC39.MC36. MC40.MC37. MC146.MC38. MC160.Learning Objective 2MC55. MC61.MC56. MC62.MC57.

1. calculate the appropriate transfer price and indicate whether the printing should be done internally by printpro under each of the following situations: a. printpro has available capacity. b. printpro has no available capacity

Pricing95.J - 21Assume the Thread Division has excess capacity. The Garment Division wants theThread Division to furnish them additional spools of thread that could be made using theexcess capacity. In a negotiated transfer price, the Thread Division should accept as aminimum any transfer price that exceeds thea. total cost of

achievement test 1: chapters 1 and 2 name __________________________ accounting instructor _______________________ kimmel, weygandt, and kieso section # _______ date _________ part total points 42 8 10 10 18 12 100 score part i — multiple choice (42 points)

Introduction to Financial StatementsSolution 1981-55(Cont.)Liabilities and Stockholders’ EquityLiabilitiesAccounts payable ............................................................................Stockholders’ equityCommon stock .................................................................................Retained earnings ............................................................................Total liabilities and stockholders’ equity ....................................$18,000$40,00026,000*66,000$84,000*$39,000 – $13,000Ex. 199The summaries of data from the balance sheet, income statement, and retained earningsstatement for two corporations, Bates Corporation and Wilson Enterprises, are presented belowfor 2014.Bates CorporationBeginning of yearTotal

Introduction to Financial StatementsSolution 1981-55(Cont.)Liabilities and Stockholders’ EquityLiabilitiesAccounts payable ............................................................................Stockholders’ equityCommon stock .................................................................................Retained earnings ............................................................................Total liabilities and stockholders’ equity ....................................$18,000$40,00026,000*66,000$84,000*$39,000 – $13,000Ex. 199The summaries of data from the balance sheet, income statement, and retained earningsstatement for two corporations, Bates Corporation and Wilson Enterprises, are presented belowfor 2014.Bates CorporationBeginning of yearTotal

final exam: chapters 1-13 name __________________________ accounting instructor _______________________ kimmel, weygandt, & kieso section # _______ date _________ part viii total points 76 20 8 18 15 12 21 30 200 score part i — multiple choice (76 points)

1. halladorn, inc. sells a single product with a contribution margin of $9 per unit, fixed costs of $54,000, and sales for the current year of $82,800. how much is halladorn’s break- even point? a. 15,200 units b. $6,000 c. 6,000 units d.

CHAPTER 1INTRODUCTION TO FINANCIAL STATEMENTSItem1.2.3.4.5.6.7.8.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.175.176.177.178.192.193.SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYLOBTItem LOBTItem LOBTItemLO BTItem LOTrue-False Statements1K9.2K17.3K25.4K33.51K10.2K18.3C26.4K34.51K11.2K19.3K27.5K35.61K12.3K20.4K28.5C36.61K13.3K21.4K29.5C37.62K14.3K22.4K30.5C38.62K15.3K23.4K31.5C39.62K16.3K24.4K32.5C40.6Multiple Choice Questions1K68.2K95.4AP122.4AP149.51K69.2K96.4K123.4AN150.51K70.2K97.3C124.4AN151.51K71.2K98.3C125.5K152.51K72.2C99.4K126.5K153.51K73.2K100.4K127.5K154.51K74.2K101.4K128.5AP155.51K75.2C102.4C129.5AP156.51K76.3C103.4K130.5AP157.51K77.3C104.4C131.5AP158.51C78.3K105.4K132.5AN159.41C79.3K106.4K133.5AN160.51K80.3K107.4K134.5AN161.51K81.3K108.4K135.5AN162.52C82.3K109.4C1365AN163.52K83.3K110.5K137.5K164.52K84.3K111.4K138.4K165.52K85.3K112.4K139.5K166.62K86.3K113.4C140.5K167.62K87.3K114.4K141.5K168.62K88.3K115.4C142.3K169.62K89.3K116.4K143.5K170.62K90.3K117.4K144.5K171.62K91.3K118.4C145.5K172.62K92.3K119.4AP146.4K173.62K93.3K120.4AP147.4C174.62K94.4AP 121.4AP148.4KBrief Exercises1C179.5AP 183.5AP187.5C191.53C180.4,5C184.5AP188.5AN4,5AP 181.4AP 185.5K189.5C4,5AP 182.5K186.5C190.5ANExercises4,5AP 194.5AP 196.4,5AN198.5AP200.54,5AP 195.4AP 197.4,5AP199.5AN201.5FOR INSTRUCTOR USE ONLYBTKKKKKKKCKCCCAPAPAPAPAPAPKKANANANANANKKKKKKKCKANAPANTest Bank for Accounting: Tools for Business Decision Making, Fifth Edition1-2202.203.12KK210.1-6K211.212.213.112KCC204.205.35KKCompletion Statements206.5K208.207.5K209.56KK664CECMatching214.215.216.255KCCShort Answer Essay217.5AN220.218.5K221.219.5C222.*This topic is dealt with

CHAPTER 1INTRODUCTION TO FINANCIAL STATEMENTSItem1.2.3.4.5.6.7.8.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.175.176.177.178.192.193.SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYLOBTItem LOBTItem LOBTItemLO BTItem LOTrue-False Statements1K9.2K17.3K25.4K33.51K10.2K18.3C26.4K34.51K11.2K19.3K27.5K35.61K12.3K20.4K28.5C36.61K13.3K21.4K29.5C37.62K14.3K22.4K30.5C38.62K15.3K23.4K31.5C39.62K16.3K24.4K32.5C40.6Multiple Choice Questions1K68.2K95.4AP122.4AP149.51K69.2K96.4K123.4AN150.51K70.2K97.3C124.4AN151.51K71.2K98.3C125.5K152.51K72.2C99.4K126.5K153.51K73.2K100.4K127.5K154.51K74.2K101.4K128.5AP155.51K75.2C102.4C129.5AP156.51K76.3C103.4K130.5AP157.51K77.3C104.4C131.5AP158.51C78.3K105.4K132.5AN159.41C79.3K106.4K133.5AN160.51K80.3K107.4K134.5AN161.51K81.3K108.4K135.5AN162.52C82.3K109.4C1365AN163.52K83.3K110.5K137.5K164.52K84.3K111.4K138.4K165.52K85.3K112.4K139.5K166.62K86.3K113.4C140.5K167.62K87.3K114.4K141.5K168.62K88.3K115.4C142.3K169.62K89.3K116.4K143.5K170.62K90.3K117.4K144.5K171.62K91.3K118.4C145.5K172.62K92.3K119.4AP146.4K173.62K93.3K120.4AP147.4C174.62K94.4AP 121.4AP148.4KBrief Exercises1C179.5AP 183.5AP187.5C191.53C180.4,5C184.5AP188.5AN4,5AP 181.4AP 185.5K189.5C4,5AP 182.5K186.5C190.5ANExercises4,5AP 194.5AP 196.4,5AN198.5AP200.54,5AP 195.4AP 197.4,5AP199.5AN201.5FOR INSTRUCTOR USE ONLYBTKKKKKKKCKCCCAPAPAPAPAPAPKKANANANANANKKKKKKKCKANAPANTest Bank for Accounting: Tools for Business Decision Making, Fifth Edition1-2202.203.12KK210.1-6K211.212.213.112KCC204.205.35KKCompletion Statements206.5K208.207.5K209.56KK664CECMatching214.215.216.255KCCShort Answer Essay217.5AN220.218.5K221.219.5C222.*This topic is dealt with

Introduction to Financial Statements116.1-21Which financial statement is prepared first?a. Balance sheetb. Income statementc. Retained earnings statementd. Statement of cash flowsAns: B, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:Reporting117.An income statement showsa. revenues, liabilities, and stockholders’ equity.b.

1. the standard number of hours that should have been worked for output attained is 5,100 direct labor hours, and the actual number of hours worked was 5,200. if the direct labor price variance was $520 unfavorable, and the standard rate of pay was $14.20 per direct labor

Introduction to Financial Statements1-41Be. 186For the items listed below, fill in the appropriate code letter to indicate whether the item is anasset, liability, or stockholders’ equity item.CodeAssetALiabilityLStockholders’ EquitySE_____1. Rent Expense____6. Cash_____2. Equipment____7. Accounts Receivable_____3. Accounts Payable____8. Retained Earnings_____4. Common Stock____9. Service Revenue_____5. Insurance Expense____ 10. Notes PayableAns: N/A, LO: 5,

1. what does inventory turnover measure? a. the number of times average inventory was sold during the year b. the profitability of selling inventory items c. the amount of cash tied up in inventory d. the number of days of inventory on hand at the end

Introduction to Financial Statements1-41Be. 186For the items listed below, fill in the appropriate code letter to indicate whether the item is anasset, liability, or stockholders’ equity item.CodeAssetALiabilityLStockholders’ EquitySE_____1. Rent Expense____6. Cash_____2. Equipment____7. Accounts Receivable_____3. Accounts Payable____8. Retained Earnings_____4. Common Stock____9. Service Revenue_____5. Insurance Expense____ 10. Notes PayableAns: N/A, LO: 5,

4. which one of the following is a contra account with a debit balance? a. depreciation expense b. accumulated depreciation c. sales discounts d. cost of goods sold 5. which one of the following is not a contribution of the

1. which one of the following is not a benefit of activity-based costing? a. more accurate product costing b. fewer cost pools used to assign overhead costs to products c. enhanced control over overhead costs d. better management decisions 2. an example of

1. which one of the following is not a key principle of cash management? a. plan the timing of major expenditures b. invest idle cash c. keep inventory levels low d. maintain as much cash as possible in order to pay obligations when due

4. which of the following transactions affects the retained earnings account? a. declare a cash dividend b. acquire treasury stock c. pay a cash dividend d. stock split 5. harvey food store issued common stock with a par value of $1

Introduction to Financial Statements116.1-21Which financial statement is prepared first?a. Balance sheetb. Income statementc. Retained earnings statementd. Statement of cash flowsAns: B, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:Reporting117.An income statement showsa. revenues, liabilities, and stockholders’ equity.b.

1. explain a current liability and identify the major types of current liabilities. a current liability is a debt that a company can reasonably expect to pay

Reporting and Analyzing Liabilities207.10-41In 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 earnedfor the year?a. 6.50b. 4.17c. 5.17d. 5.50Ans: A, LO: 7, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective,

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition10-60Ex. 264On May 15, Holt's Clothiers borrowed some money on a 4-month note to provide cash during theslow season of the year. The interest rate on the note was 8%. At the time the note was due, theamount of interest

1. explain a current liability and identify the major types of current liabilities. a current liability is a debt that a company can reasonably expect to pay

Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition10-60Ex. 264On May 15, Holt's Clothiers borrowed some money on a 4-month note to provide cash during theslow season of the year. The interest rate on the note was 8%. At the time the note was due, theamount of interest

Reporting and Analyzing Liabilities111.10-21Tina's Boutique has total receipts for the month of $24,255 including sales taxes. If thesales tax rate is 5%, what are Tina's sales for the month?a. $23,043b. $23,100c. $24,255d. It cannot be determined.Ans: B, LO: 3, Bloom: AN, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory

Reporting and Analyzing Liabilities111.10-21Tina's Boutique has total receipts for the month of $24,255 including sales taxes. If thesales tax rate is 5%, what are Tina's sales for the month?a. $23,043b. $23,100c. $24,255d. It cannot be determined.Ans: B, LO: 3, Bloom: AN, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory

achievement test 10: chapter 20 name __________________________ accounting, 5e instructor _______________________ section # _______ date _________ part total points 20 20 60 100 score part i — multiple choice (20 points) instructions: designate the best answer for each of

Reporting and Analyzing Liabilities207.10-41In 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 earnedfor the year?a. 6.50b. 4.17c. 5.17d. 5.50Ans: A, LO: 7, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective,

CHAPTER 11REPORTING AND ANALYZING STOCKHOLDERS’ EQUITYSUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBT1.2.3.4.5.6.7.8.9.10.1111111112KKKKKKKKKKItemLOBT2222223333KKKKKKKKKKItemLOBTItemLOBT5556666667KKKKKKKKKK149.150.151.152.153.154.155.156.157.158.159.160.161.162.163.164.165.166.167.168.169.170.171.172.173.174.175.176.177.178.179.180.181.182.5555555555555555566666666777757775APAPAPAPAPKKKKKKKCCCKKCKKKKAPAPKAPAPAPAPAPAPAPAPAP222.223.57APAPItemLOBT41.42.43.*44.*45.*46.788999KKKKKC183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.198.199.200.201.202.*203.*204.*205.*206.*207.*208.209.210.*211.*212.777777778888888888889999995699APAPKKKKKKKKAPAPAPAPAPAPAPAPAPCCAPAPAPAPAPKKKKTrue-False Statements11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.26.27.28.29.30.3334445555KCKKKKKKKC31.32.33.34.35.36.37.38.39.40.Multiple Choice Questions47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.1111111111111111111121121222222222KKKKKKKKKCKKKKKKKKKKKKKKKKKKCKKAPAPAP81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.113.114.2222222222222233333333333333444455APAPKCKAPAPAPKAPCAPAPAPKAPAPAPAPKCCCKKKKKKAPCAPKK115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.140.141.142.143.144.145.146.147.148.213.214.1,31KK216.217.2,32,3APAP219.220.5555445555555555555555555555555555KAPAPKAPCAPAPKKKKCAPAPAPCAPAPKKCKKKKKKKCKAPAPKBrief Exercises47APAPFOR INSTRUCTOR USE ONLY11-2Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition215.2K218.2,3,4AP221.225.226.227.228.2,32,32,3,42,3,5APAPAPAP229.230.231.232.2,3,72-4,72,42,4,5APAPAPAN233.234.235.236.245.246.247.111KKK248.249.250.112KKK258.1-8K259.260.11,4KK5AP224.8AP237.238.239.240.5,7,9677APAPAPAP241.242.243.*244.7885,9APANANAP556KKK257.7K58CC3,57ECExercises2,7,9555APAPAPAPCompletion Statements251.252.253.345KKK254.255.256.MatchingShort Answer Essay261.262.34CC263.264.55CC265.266.267.268.*This topic is dealt with in an Appendix to the chapter.SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPELearning

1. advantages of a corporation: (a) separate legal existence (b) limited liability of stockholders (c) transferable ownership rights (d) continuous life (e) ability to acquire capital

CHAPTER 11REPORTING AND ANALYZING STOCKHOLDERS’ EQUITYSUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBT1.2.3.4.5.6.7.8.9.10.1111111112KKKKKKKKKKItemLOBT2222223333KKKKKKKKKKItemLOBTItemLOBT5556666667KKKKKKKKKK149.150.151.152.153.154.155.156.157.158.159.160.161.162.163.164.165.166.167.168.169.170.171.172.173.174.175.176.177.178.179.180.181.182.5555555555555555566666666777757775APAPAPAPAPKKKKKKKCCCKKCKKKKAPAPKAPAPAPAPAPAPAPAPAP222.223.57APAPItemLOBT41.42.43.*44.*45.*46.788999KKKKKC183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.198.199.200.201.202.*203.*204.*205.*206.*207.*208.209.210.*211.*212.777777778888888888889999995699APAPKKKKKKKKAPAPAPAPAPAPAPAPAPCCAPAPAPAPAPKKKKTrue-False Statements11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.26.27.28.29.30.3334445555KCKKKKKKKC31.32.33.34.35.36.37.38.39.40.Multiple Choice Questions47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.1111111111111111111121121222222222KKKKKKKKKCKKKKKKKKKKKKKKKKKKCKKAPAPAP81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.113.114.2222222222222233333333333333444455APAPKCKAPAPAPKAPCAPAPAPKAPAPAPAPKCCCKKKKKKAPCAPKK115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.140.141.142.143.144.145.146.147.148.213.214.1,31KK216.217.2,32,3APAP219.220.5555445555555555555555555555555555KAPAPKAPCAPAPKKKKCAPAPAPCAPAPKKCKKKKKKKCKAPAPKBrief Exercises47APAPFOR INSTRUCTOR USE ONLY11-2Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition215.2K218.2,3,4AP221.225.226.227.228.2,32,32,3,42,3,5APAPAPAP229.230.231.232.2,3,72-4,72,42,4,5APAPAPAN233.234.235.236.245.246.247.111KKK248.249.250.112KKK258.1-8K259.260.11,4KK5AP224.8AP237.238.239.240.5,7,9677APAPAPAP241.242.243.*244.7885,9APANANAP556KKK257.7K58CC3,57ECExercises2,7,9555APAPAPAPCompletion Statements251.252.253.345KKK254.255.256.MatchingShort Answer Essay261.262.34CC263.264.55CC265.266.267.268.*This topic is dealt with in an Appendix to the chapter.SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPELearning

2014. giraldi corporation’s stock was selling for $18 on december 1, 2014, before the stock split was declared. par value of the stock was adjusted. net income for 2014 was $230,000 and there were no cash dividends declared. for instructor use only reporting and analyzing stockholders’ equity 11-63 ex.

2014. giraldi corporation’s stock was selling for $18 on december 1, 2014, before the stock split was declared. par value of the stock was adjusted. net income for 2014 was $230,000 and there were no cash dividends declared. for instructor use only reporting and analyzing stockholders’ equity 11-63 ex.

1. advantages of a corporation: (a) separate legal existence (b) limited liability of stockholders (c) transferable ownership rights (d) continuous life (e) ability to acquire capital

Reporting and Analyzing Stockholders’ Equity108.11-21Treasury shares plus outstanding shares equala. 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 Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:Reporting109.Which of the following is not a right or preference associated

Reporting and Analyzing Stockholders’ Equity108.11-21Treasury shares plus outstanding shares equala. 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 Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:Reporting109.Which of the following is not a right or preference associated

achievement test 11: chapters 21-22 name __________________________ accounting, 5e instructor _______________________ section # _______ date _________ part total points 26 32 22 20 100 score part i — multiple choice (26 points) instructions: designate the best answer for each

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: depreciation (a) .................................................................... $17,000

5. total overhead variance achievement test 12 at12- 5 part iv — capital budgeting (20 points) shangria company is considering a capital investment of $140,000 in new equipment, which is expected to have a useful life of 4 years with no salvage value. depreciation is computed by the

CHAPTER 12STATEMENT OF CASH FLOWSSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLO1.2.3.4.5.6.7.8.9.111112222KKKKKKKCK10.11.12.13.14.15.16.17.18.22222222242.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.11111112222222222222222222222KKKKKKCKKKKKKKCCCCCCCCCCCCCKC71.72.73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.22222222222222222333333333333184.185.186.222APAPK187.188.189.444196.197.198.199.4444APAPAPAP200.201.202.203.4444BTItemLO BTItemTrue-False StatementsC19.2C28.K20.3K29.K21.3K30.K22.4C31.C23.4C32.C24.4K33.C25.4C*34.C26.4C*35.K27.4C*36.Multiple Choice QuestionsC100.4K129.C101.4C130.C102.4AP131.K103.4AP132.K104.4AP133.K105.4C134.K106.4C135.K107.4C136.AP108.4C137.AP109.4AP138.AP110.4AP139.AP111.4AP140.AP112.4AP141.K113.4K142.AP114.4C143.AP115.4K144.AP116.4K145.K117.4K146.K118.4K147.K119.4K148.K120.4C149.K121.4C150.K122.4C151.K123.4C152.C124.4C153.C125.4C154.K126.4AP155.K127.4AP156.AN128.4AP157.Brief ExercisesAP190.4AP *193.K*191.6AP *194.K*192.6AP *195.ExercisesAP204.4,5 AP *208.AP205.4,5 AP *209.AP206.5AN *210.AN *207. 5,6 AP *211.FOR INSTRUCTOR USE ONLYLOBTItemLOBT455555666CKKCKCCAPK*37.*38.*39.*40.*41.66677CCKKK44444,64,64,64,64,64,64,64,64,64,64,64,64,64,644444455555APAPAPKAPAPCKKKKKKAPAPAPAPAPCCAPCCCKAPAPKK158.159.160.161.162.163.164.165.166.167.*168.*169.*170.*171.*172.*173.*174.*175.*176.*177.*178.*179.*180.*181.*182.*183.55555555556666666666666666KANANANANANKKANANAPAPAPAPAPAPAPCAPKAPAPKKAPAP666APAPAP6666APAPAPAPTest Bank for Accounting: Tools for Business Decision Making, Fifth Edition12-2Completion StatementsItemSO BTItem218.4K221.219.4,6K*222.220.5K*223.MatchingSO566BTKKKItem*224.*225.Short Answer Essay228.1K230.3K232.4C234.229.2C231. 3,4C233.4,6C*235.*This topic is

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: depreciation (a) .................................................................... $17,000

2. a. current cash debt coverage = average current liabilities $45,000 = 2.8 times ($7,000 + $25,000) ÷ 2 net cash provided by operating activities b. cash debt coverage = average total liabilities $45,000 = .79 times ($52,000 + $62,000) ÷ 2 for instructor use only test bank for

2. a. current cash debt coverage = average current liabilities $45,000 = 2.8 times ($7,000 + $25,000) ÷ 2 net cash provided by operating activities b. cash debt coverage = average total liabilities $45,000 = .79 times ($52,000 + $62,000) ÷ 2 for instructor use only test bank for

3. (a) operating activity 8. (b) investing activity 4. (a) operating activity 9. (b) investing activity 5. (a) operating activity 10. (d) noncash actitity for instructor use only test bank for accounting: tools for business

3. (a) operating activity 8. (b) investing activity 4. (a) operating activity 9. (b) investing activity 5. (a) operating activity 10. (d) noncash actitity for instructor use only test bank for accounting: tools for business

CHAPTER 12STATEMENT OF CASH FLOWSSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLO1.2.3.4.5.6.7.8.9.111112222KKKKKKKCK10.11.12.13.14.15.16.17.18.22222222242.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.11111112222222222222222222222KKKKKKCKKKKKKKCCCCCCCCCCCCCKC71.72.73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.22222222222222222333333333333184.185.186.222APAPK187.188.189.444196.197.198.199.4444APAPAPAP200.201.202.203.4444BTItemLO BTItemTrue-False StatementsC19.2C28.K20.3K29.K21.3K30.K22.4C31.C23.4C32.C24.4K33.C25.4C*34.C26.4C*35.K27.4C*36.Multiple Choice QuestionsC100.4K129.C101.4C130.C102.4AP131.K103.4AP132.K104.4AP133.K105.4C134.K106.4C135.K107.4C136.AP108.4C137.AP109.4AP138.AP110.4AP139.AP111.4AP140.AP112.4AP141.K113.4K142.AP114.4C143.AP115.4K144.AP116.4K145.K117.4K146.K118.4K147.K119.4K148.K120.4C149.K121.4C150.K122.4C151.K123.4C152.C124.4C153.C125.4C154.K126.4AP155.K127.4AP156.AN128.4AP157.Brief ExercisesAP190.4AP *193.K*191.6AP *194.K*192.6AP *195.ExercisesAP204.4,5 AP *208.AP205.4,5 AP *209.AP206.5AN *210.AN *207. 5,6 AP *211.FOR INSTRUCTOR USE ONLYLOBTItemLOBT455555666CKKCKCCAPK*37.*38.*39.*40.*41.66677CCKKK44444,64,64,64,64,64,64,64,64,64,64,64,64,64,644444455555APAPAPKAPAPCKKKKKKAPAPAPAPAPCCAPCCCKAPAPKK158.159.160.161.162.163.164.165.166.167.*168.*169.*170.*171.*172.*173.*174.*175.*176.*177.*178.*179.*180.*181.*182.*183.55555555556666666666666666KANANANANANKKANANAPAPAPAPAPAPAPCAPKAPAPKKAPAP666APAPAP6666APAPAPAPTest Bank for Accounting: Tools for Business Decision Making, Fifth Edition12-2Completion StatementsItemSO BTItem218.4K221.219.4,6K*222.220.5K*223.MatchingSO566BTKKKItem*224.*225.Short Answer Essay228.1K230.3K232.4C234.229.2C231. 3,4C233.4,6C*235.*This topic is

CHAPTER 13FINANCIAL ANALYSIS: THE BIG PICTURESUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBTItemLO1.2.3.4.5.6.7.8.9.122222233KKKKKKKKK10.11.12.13.14.15.16.17.18.334, 544444546.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.111222222222222222222222222222233KKKAPAPKKCCKKKCKKKCKAPAPAPAPKKKCKAPKAPAPKK79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.333333334444444444444444445555555BTItem LOBTItemTrue-False StatementsK19.5K28.K20.5K29.K21.5K30.K22.5K31.K23.5K32.K24.5K33.AP25.5K34.C26.5C35.K27.5K36.Multiple Choice QuestionsAP 112.5K145.AP 113.5K146.C114.5K147.K115.5K148.K116.5K149.K117.5K150.AP 118.5AP151.K119.5AP152.K120.5AP153.AP 121.5AP154.K122.5AP155.K123.5K156.K124.5K157.K125.6,8K158.K126.6,8K159.K127.6,8K160.AP 128.6,8K161.AP 129.6,8K162.AP 130.6,8K163.AP 131.6,8C164.K132.6,8C165.AP 133.6,8K166.K134.6,8K167.AP 135.6,8K168.K136.6,8K169.AP 137.6,8K170.K138.6,8K171.K139.6,8C172.K140.6,8K173.K141.6,8AP174.K142.6,8AP175.K143.6,8C176.K144.6,8AP177.FOR INSTRUCTOR USE ONLYLOBTItemLOBT6,86,86,86,86,86,86,86,86,8KKKKKKKKK37.38.39.40.41.42.43.44.45.6,86,86,86,86,86,8777CKCKKKKKK6,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,8APAPAPAPAPAPAPKKKKAPAPAPAPKAPKAPKAPKKKKKANKKANANANK178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.198.199.200.201.202.203.204.205.206.207.208.209.210.6,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,8KANCANAPAPAPAPAPAPAPAPANAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPKKKKKTest Bank for Accounting: Tools for Business Decision Making, Fifth Edition13-2211.212.213.6,86,86,8ANAPAP214.215.216.222.223.224.225.226.22224KKAPAPAP227228229.230.231.244.245.246.444ANAPAP247.248.249.257.258.259.222KKK260.261.262.270.6,8K271.272.273.12CK274.275.Multiple Choice Questions(Cont.)6,8K217.7C220.76,8AN 218.7C221.76,8C219.7CBrief Exercises4AP 232. 4, 5AP237.6,84AP

Financial Analysis: The Big Picture(5-10 min.)Solution 2302014$620,000Net Income0.19 =13-612013XIncrease19%$620,000 – XX0.19X = $620,000 – X1.19X = $620,000X = $521,008Be. 231Horizontal analysis (trend analysis) percentages for Omega Company’s sales, cost of goods sold,and expenses are listed here.Horizontal AnalysisSales revenueCost of goods soldExpenses201598.2%103.1108.62014104.8%97.596.42013100.0%100.0100.0InstructionsExplain whether Omega’s net income increased, decreased, or remained unchanged

CHAPTER 13FINANCIAL ANALYSIS: THE BIG PICTURESUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBTItemLO1.2.3.4.5.6.7.8.9.122222233KKKKKKKKK10.11.12.13.14.15.16.17.18.334, 544444546.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.111222222222222222222222222222233KKKAPAPKKCCKKKCKKKCKAPAPAPAPKKKCKAPKAPAPKK79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.333333334444444444444444445555555BTItem LOBTItemTrue-False StatementsK19.5K28.K20.5K29.K21.5K30.K22.5K31.K23.5K32.K24.5K33.AP25.5K34.C26.5C35.K27.5K36.Multiple Choice QuestionsAP 112.5K145.AP 113.5K146.C114.5K147.K115.5K148.K116.5K149.K117.5K150.AP 118.5AP151.K119.5AP152.K120.5AP153.AP 121.5AP154.K122.5AP155.K123.5K156.K124.5K157.K125.6,8K158.K126.6,8K159.K127.6,8K160.AP 128.6,8K161.AP 129.6,8K162.AP 130.6,8K163.AP 131.6,8C164.K132.6,8C165.AP 133.6,8K166.K134.6,8K167.AP 135.6,8K168.K136.6,8K169.AP 137.6,8K170.K138.6,8K171.K139.6,8C172.K140.6,8K173.K141.6,8AP174.K142.6,8AP175.K143.6,8C176.K144.6,8AP177.FOR INSTRUCTOR USE ONLYLOBTItemLOBT6,86,86,86,86,86,86,86,86,8KKKKKKKKK37.38.39.40.41.42.43.44.45.6,86,86,86,86,86,8777CKCKKKKKK6,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,8APAPAPAPAPAPAPKKKKAPAPAPAPKAPKAPKAPKKKKKANKKANANANK178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.198.199.200.201.202.203.204.205.206.207.208.209.210.6,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,86,8KANCANAPAPAPAPAPAPAPAPANAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPKKKKKTest Bank for Accounting: Tools for Business Decision Making, Fifth Edition13-2211.212.213.6,86,86,8ANAPAP214.215.216.222.223.224.225.226.22224KKAPAPAP227228229.230.231.244.245.246.444ANAPAP247.248.249.257.258.259.222KKK260.261.262.270.6,8K271.272.273.12CK274.275.Multiple Choice Questions(Cont.)6,8K217.7C220.76,8AN 218.7C221.76,8C219.7CBrief Exercises4AP 232. 4, 5AP237.6,84AP

Financial Analysis: The Big PictureEx. 25213-79(Cont.)Additional information:1. Common stock outstanding January 1, 2014, was 30,000 shares, and 40,000 shares wereoutstanding at December 31, 2014.2. The market price of Gillman, Inc., stock was $15.86 in 2014.3. Cash dividends of $16,000 were paid, $4,500 of which were to preferred stockholders.InstructionsCompute the following

Financial Analysis: The Big PictureEx. 25213-79(Cont.)Additional information:1. Common stock outstanding January 1, 2014, was 30,000 shares, and 40,000 shares wereoutstanding at December 31, 2014.2. The market price of Gillman, Inc., stock was $15.86 in 2014.3. Cash dividends of $16,000 were paid, $4,500 of which were to preferred stockholders.InstructionsCompute the following

Financial Analysis: The Big Picture100.13-21Assume the following sales data for a company:2015$960,0002014720,0002013600,000If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014?a. 60%b. 20%c. 120%d. 160%Ans: B, LO: 4, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting,

Financial Analysis: The Big Picture186.13-41The following information pertains to Unique Company. Assume that all balance sheetamounts represent both average and ending balance figures. Assume that all sales wereon credit.AssetsCash and short-term investments$ 40,000Accounts receivable (net)30,000Inventory20,000Property, plant and equipment210,000Total Assets$300,000Liabilities and Stockholders’ EquityCurrent liabilities$ 60,000Long-term liabilities90,000Stockholders’ equity—common150,000Total Liabilities and Stockholders’ Equity

Financial Analysis: The Big Picture100.13-21Assume the following sales data for a company:2015$960,0002014720,0002013600,000If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014?a. 60%b. 20%c. 120%d. 160%Ans: B, LO: 4, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting,

Financial Analysis: The Big Picture(5-10 min.)Solution 2302014$620,000Net Income0.19 =13-612013XIncrease19%$620,000 – XX0.19X = $620,000 – X1.19X = $620,000X = $521,008Be. 231Horizontal analysis (trend analysis) percentages for Omega Company’s sales, cost of goods sold,and expenses are listed here.Horizontal AnalysisSales revenueCost of goods soldExpenses201598.2%103.1108.62014104.8%97.596.42013100.0%100.0100.0InstructionsExplain whether Omega’s net income increased, decreased, or remained unchanged

Financial Analysis: The Big Picture186.13-41The following information pertains to Unique Company. Assume that all balance sheetamounts represent both average and ending balance figures. Assume that all sales wereon credit.AssetsCash and short-term investments$ 40,000Accounts receivable (net)30,000Inventory20,000Property, plant and equipment210,000Total Assets$300,000Liabilities and Stockholders’ EquityCurrent liabilities$ 60,000Long-term liabilities90,000Stockholders’ equity—common150,000Total Liabilities and Stockholders’ Equity

Managerial AccountingSolution 180(12–17 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(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)$205,000 ($450,000 – $90,000 – $155,000).(k)$548,000 ($98,000 + $450,000).(l)$163,000 ($548,000 – $385,000).(m) $95,000(n)14 - 53($960,000 – $895,000).($480,000 – $385,000).$125,000 ($480,000 –

1. direct labor (a) 3. depreciation on printing machines (a) 5. raw materials inventory, 1/1 (a) 6. cost of goods manufactured (a), (b) 7. work in process, 1/1 (a)

CHAPTER 14MANAGERIAL ACCOUNTINGSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBT67788812CCKKKKKK107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.66656666566656665666666158.159.177.178.179.180.181.ItemLOBTsg 37.34567CKKKKAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAP130.131.132.133.134.135.136.137.138.139.140.141.sg 142.sg 143.sg 144.sg 145.st 146.sg 147.st 148.sg 149.st 150.sg 151.6666778888881244665667APAPAPAPCCCKKCKKCKKKKCKKKK66APAP160.161.67APAP66666APAPAPANAN182.183.184.185.666,77APAPCAPTrue-False Statements1.2.3.4.5.6.7.8.11111222CKKKKKCK9.10.11.12.13.14.15.16.23333344KKKKKCCK17.18.19.20.21.22.23.24.44445556CKKKKKKK25.26.27.28.29.30.sg 31.sg 32.sg 33.sg 34.sg 35.sg 36.Multiple Choice Questions38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.11111111111111111222222KCKCKCKCCKKKKCCKKKKCKCK61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.82.83.22233333333333333333344CKCCKCKKKCCKKCKCKKCKKCC84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.152.153.33KK154.155.33KK156.157.162.163.164.165.166.13343,4CCCCAP167.168.169.170.171.4445,66,7APCCAPC172.173.174.175.176.44444444555556666666666APCCCCKCKKCCCCAPKCCKAPAPAPKAPBrief Exercises46CAPExercises5–75–765,66APAPAPAPAN14 - 2Test Bank for Accounting, Tools for Business Decision Making Fifth EditionCompletion Statements186.187.188.111KKK189.190.191.222KKK192.193.194.333KKK195.196.197.456KKK3K198.199.200.667KKKMatching Statements201.1K202.203.12KKShort-Answer Essaysgst204.205.34KK206.207.38KK208.This question also appears

Managerial Accounting113.14 - 21Ogleby Inc.'s accounting records reflect the following inventories:Dec. 31, 2012Dec. 31, 2013Raw materials inventory$120,000$ 96,000Work in process inventory156,000174,000Finished goods inventory150,000138,000During 2013, Ogleby purchased $840,000 of raw materials, incurred direct labor costs of$150,000, and incurred manufacturing overhead totaling $192,000.How much would Ogleby Manufacturing report as cost of goods

Managerial Accounting113.14 - 21Ogleby Inc.'s accounting records reflect the following inventories:Dec. 31, 2012Dec. 31, 2013Raw materials inventory$120,000$ 96,000Work in process inventory156,000174,000Finished goods inventory150,000138,000During 2013, Ogleby purchased $840,000 of raw materials, incurred direct labor costs of$150,000, and incurred manufacturing overhead totaling $192,000.How much would Ogleby Manufacturing report as cost of goods

1. direct labor (a) 3. depreciation on printing machines (a) 5. raw materials inventory, 1/1 (a) 6. cost of goods manufactured (a), (b) 7. work in process, 1/1 (a)

Managerial AccountingSolution 180(12–17 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(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)$205,000 ($450,000 – $90,000 – $155,000).(k)$548,000 ($98,000 + $450,000).(l)$163,000 ($548,000 – $385,000).(m) $95,000(n)14 - 53($960,000 – $895,000).($480,000 – $385,000).$125,000 ($480,000 –

CHAPTER 14MANAGERIAL ACCOUNTINGSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBT67788812CCKKKKKK107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.66656666566656665666666158.159.177.178.179.180.181.ItemLOBTsg 37.34567CKKKKAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAP130.131.132.133.134.135.136.137.138.139.140.141.sg 142.sg 143.sg 144.sg 145.st 146.sg 147.st 148.sg 149.st 150.sg 151.6666778888881244665667APAPAPAPCCCKKCKKCKKKKCKKKK66APAP160.161.67APAP66666APAPAPANAN182.183.184.185.666,77APAPCAPTrue-False Statements1.2.3.4.5.6.7.8.11111222CKKKKKCK9.10.11.12.13.14.15.16.23333344KKKKKCCK17.18.19.20.21.22.23.24.44445556CKKKKKKK25.26.27.28.29.30.sg 31.sg 32.sg 33.sg 34.sg 35.sg 36.Multiple Choice Questions38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.11111111111111111222222KCKCKCKCCKKKKCCKKKKCKCK61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.82.83.22233333333333333333344CKCCKCKKKCCKKCKCKKCKKCC84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.152.153.33KK154.155.33KK156.157.162.163.164.165.166.13343,4CCCCAP167.168.169.170.171.4445,66,7APCCAPC172.173.174.175.176.44444444555556666666666APCCCCKCKKCCCCAPKCCKAPAPAPKAPBrief Exercises46CAPExercises5–75–765,66APAPAPAPAN14 - 2Test Bank for Accounting, Tools for Business Decision Making Fifth EditionCompletion Statements186.187.188.111KKK189.190.191.222KKK192.193.194.333KKK195.196.197.456KKK3K198.199.200.667KKKMatching Statements201.1K202.203.12KKShort-Answer Essaysgst204.205.34KK206.207.38KK208.This question also appears

final exam: chapters 14-24 name __________________________ kimmel accounting, 5e instructor _______________________ section # _______ date _________ part total points 54 18 19 14 105 score part i — multiple choice (54 points) instructions: designate the best answer for each

CHAPTER 15JOB ORDER COSTINGSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBTItemLOBT4445555CKCCKKK29.30.sg31.sg32.sg33.sg34.sg35.6612346CCCKKKK105.106.107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.55555555555555555556666CAPCCCCAPAPAPCCAPAPAPAPAPAPAPAPAPAPAPC128.129.130.131.132.133.134.135.136.137.138.139.140.st141.sg142.st143.sg144.st145.sg146.st147.sg148.st149.sg150.66666666666661223344666CCKCAPCCCCCCCCKKKKKAPKCKK157.158.56APAP159.160.66APAPTrue-False Statements1.2.3.4.5.6.7.1111111KCCCCKC8.9.10.11.12.13.14.2222222KCCCCKC15.16.17.18.19.20.21.2233333KKKKCCK22.23.24.25.26.27.28.Multiple Choice Questions36.37.38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.11111111222222222222222KKKCCCCCAPKKCKCCCKCKKAPKK59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.22333333333333333333334CCKKAPKCKKKCCKKCCKAPAPAPAPAPAP82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.44444444444444444444555APAPAPAPAPAPAPCKCCKAPCKAPAPAPAPAPAPCCBrief Exercises151152sgst22APAP153.154.33APAP155.156.4,64APAPThis question also appears in the Study Guide.This question also appears in a self-test at the student companion website.15 - 2Test Bank for Accounting, Tools for Business Decision Making Fifth EditionSUMMARY OF QUESTIONS BY LEARNING

Job Order Costing15 - 55Ex. 181Gallagher 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 at125,000 hours.For the year, $475,000 of overhead costs are incurred and 130,000 hours are used.Instructions(a) Compute the

5. applied $35,000 of overhead to jobs. instructions (a) journalize the above transactions. (b) reproduce the manufacturing cost and inventory accounts. use t-accounts. (c) from an analysis of the accounts, compute the following:

Job Order Costing101.15 - 21For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. Duringthe month, $360,000 of factory labor costs are incurred of which $100,000 is indirectlabor. Actual overhead incurred was $180,000. The amount of overhead debited to Workin Process Inventory should be:a. $182,000b. $180,000c. $252,000d.

CHAPTER 15JOB ORDER COSTINGSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBTItemLOBT4445555CKCCKKK29.30.sg31.sg32.sg33.sg34.sg35.6612346CCCKKKK105.106.107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.55555555555555555556666CAPCCCCAPAPAPCCAPAPAPAPAPAPAPAPAPAPAPC128.129.130.131.132.133.134.135.136.137.138.139.140.st141.sg142.st143.sg144.st145.sg146.st147.sg148.st149.sg150.66666666666661223344666CCKCAPCCCCCCCCKKKKKAPKCKK157.158.56APAP159.160.66APAPTrue-False Statements1.2.3.4.5.6.7.1111111KCCCCKC8.9.10.11.12.13.14.2222222KCCCCKC15.16.17.18.19.20.21.2233333KKKKCCK22.23.24.25.26.27.28.Multiple Choice Questions36.37.38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.11111111222222222222222KKKCCCCCAPKKCKCCCKCKKAPKK59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.22333333333333333333334CCKKAPKCKKKCCKKCCKAPAPAPAPAPAP82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.44444444444444444444555APAPAPAPAPAPAPCKCCKAPCKAPAPAPAPAPAPCCBrief Exercises151152sgst22APAP153.154.33APAP155.156.4,64APAPThis question also appears in the Study Guide.This question also appears in a self-test at the student companion website.15 - 2Test Bank for Accounting, Tools for Business Decision Making Fifth EditionSUMMARY OF QUESTIONS BY LEARNING

Job Order Costing15 - 55Ex. 181Gallagher 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 at125,000 hours.For the year, $475,000 of overhead costs are incurred and 130,000 hours are used.Instructions(a) Compute the

5. applied $35,000 of overhead to jobs. instructions (a) journalize the above transactions. (b) reproduce the manufacturing cost and inventory accounts. use t-accounts. (c) from an analysis of the accounts, compute the following:

Job Order Costing101.15 - 21For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. Duringthe month, $360,000 of factory labor costs are incurred of which $100,000 is indirectlabor. Actual overhead incurred was $180,000. The amount of overhead debited to Workin Process Inventory should be:a. $182,000b. $180,000c. $252,000d.

Process Costing92.16 - 21Conversion cost per unit equals $7.00. Total materials costs are $60,000. Equivalent unitsare 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: 3, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC:Problem

CHAPTER 16PROCESS COSTINGSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBT78888812KKKKKKKK104.105.106.107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.6666666666666666666677APAPAPAPAPAPAPCAPAPAPAPAPAPAPAPAPAPAPAPKK156.688APAPAPItemLOBT34568CKKKK788888888122555666667KAPAPAPAPAPAPAPAPKKKKKKAPKCAPKKTrue-False Statements1.2.3.4.5.6.7.8.11122224KKCCKKKC9.10.11.12.13.14.15.16.44455555KKKCKKKAP17.18.19.20.21.22.23.24.66666677KCKKCKKK25.a26.a27.a28.a29.a30.sg31.sg32.sg33.sg34.sg35.sg36.sg, a37.Multiple Choice Questions38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.1111122222224444445555CCKKKCKCKKCKCCCCKCAPAPAPAP60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.5555555555555555555566APKAPAPAPCAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAP82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.6666666666666666666666APAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPCCAPKBrief Exercises147.148.149.sgsta555APAPAP150.151.152.666APAPAP153.154.155.666APAPAPa157.a158.This question also appears in the Study Guide.This question also appears in a self-test at the student companion website.This topic is dealt with in an Appendix to the chapter.126.a127.a128.a129.a130.a131.a132.a133.a134.st135.sg136.st137.sg138.sg139.st140.sg141.st142.sg143.sg144.st145.sg146.16 - 2Test Bank for Accounting, Tools

CHAPTER 16PROCESS COSTINGSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBT78888812KKKKKKKK104.105.106.107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.6666666666666666666677APAPAPAPAPAPAPCAPAPAPAPAPAPAPAPAPAPAPAPKK156.688APAPAPItemLOBT34568CKKKK788888888122555666667KAPAPAPAPAPAPAPAPKKKKKKAPKCAPKKTrue-False Statements1.2.3.4.5.6.7.8.11122224KKCCKKKC9.10.11.12.13.14.15.16.44455555KKKCKKKAP17.18.19.20.21.22.23.24.66666677KCKKCKKK25.a26.a27.a28.a29.a30.sg31.sg32.sg33.sg34.sg35.sg36.sg, a37.Multiple Choice Questions38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.1111122222224444445555CCKKKCKCKKCKCCCCKCAPAPAPAP60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.5555555555555555555566APKAPAPAPCAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAP82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.6666666666666666666666APAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPAPCCAPKBrief Exercises147.148.149.sgsta555APAPAP150.151.152.666APAPAP153.154.155.666APAPAPa157.a158.This question also appears in the Study Guide.This question also appears in a self-test at the student companion website.This topic is dealt with in an Appendix to the chapter.126.a127.a128.a129.a130.a131.a132.a133.a134.st135.sg136.st137.sg138.sg139.st140.sg141.st142.sg143.sg144.st145.sg146.16 - 2Test Bank for Accounting, Tools

Process Costing92.16 - 21Conversion cost per unit equals $7.00. Total materials costs are $60,000. Equivalent unitsare 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: 3, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC:Problem

16 - 56 Test Bank for Accounting, Tools for Business Decision Making Fifth EditionSolution 176(c)(Cont.)Units transferred out: 110,000  $4.40= $484,000Units in ending work in process:30,000  $1.15=$34,50018,000  $3.25=58,500$93,000Ex. 177The Polishing Department of Estaban Company has the following production and manufacturingcost data for September. Materials are entered at the

Process Costing16 - 41EXERCISESEx. 159Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. Thecompany uses a process cost accounting system.(a) Purchased raw materials for $50,000 on account.(b) Raw materials requisitioned for production were:Direct materialsMixing departmentFinishing department$20,00014,000(c) Incurred labor costs of $69,000.(d) Factory labor used:Mixing departmentFinishing department$44,00025,000(e)

Process Costing16 - 41EXERCISESEx. 159Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. Thecompany uses a process cost accounting system.(a) Purchased raw materials for $50,000 on account.(b) Raw materials requisitioned for production were:Direct materialsMixing departmentFinishing department$20,00014,000(c) Incurred labor costs of $69,000.(d) Factory labor used:Mixing departmentFinishing department$44,00025,000(e)

16 - 56 Test Bank for Accounting, Tools for Business Decision Making Fifth EditionSolution 176(c)(Cont.)Units transferred out: 110,000  $4.40= $484,000Units in ending work in process:30,000  $1.15=$34,50018,000  $3.25=58,500$93,000Ex. 177The Polishing Department of Estaban Company has the following production and manufacturingcost data for September. Materials are entered at the

Activity-Based Costing 17 - 37BE 165.(Cont.)InstructionsCompute 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 MgmtSolution 165(5 min.)EstimatedActivity Cost Pool OverheadCutting$1,000,000Stitching8,000,000Inspections2,800,000Packing960,000÷Expected Use ofCost Driver per Activity25,000 labor hours320,000 machine hours160,000 labor hours64,000

Activity-Based Costing 17 - 2188. Wallace Computer Company produces three products: Earth, Wind, and Fire. Earthrequires 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 whichthe cost driver is machine setups. How much overhead is

4. know how companies identify and use cost drivers in activity-based costing. cost drivers identified for assigning activity cost pools must (a) accurately measure the actual

Activity-Based Costing 17 - 2188. Wallace Computer Company produces three products: Earth, Wind, and Fire. Earthrequires 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 whichthe cost driver is machine setups. How much overhead is

Activity-Based Costing 17 - 37BE 165.(Cont.)InstructionsCompute 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 MgmtSolution 165(5 min.)EstimatedActivity Cost Pool OverheadCutting$1,000,000Stitching8,000,000Inspections2,800,000Packing960,000÷Expected Use ofCost Driver per Activity25,000 labor hours320,000 machine hours160,000 labor hours64,000

18 - 52 Test Bank for Accounting, Tools for Business Decision Making Fifth EditionEx. 187Erickson, Inc. makes student book bags that sell for $20 each. For the coming year, managementexpects fixed costs to be $225,000. Variable costs are $15 per unit.Instructions(a) Compute break-even sales in dollars using the mathematical equation.(b)

4. list the five components of cost-volume-profit analysis. the five components of cvp analysis are (a) volume or level of activity, (b) unit selling prices, (c) variable cost per unit, (d) total fixed costs, and (e) sales mix. 6. identify the three ways to determine the break-even point.

4. list the five components of cost-volume-profit analysis. the five components of cvp analysis are (a) volume or level of activity, (b) unit selling prices, (c) variable cost per unit, (d) total fixed costs, and (e) sales mix. 6. identify the three ways to determine the break-even point.

18 - 52 Test Bank for Accounting, Tools for Business Decision Making Fifth EditionEx. 187Erickson, Inc. makes student book bags that sell for $20 each. For the coming year, managementexpects fixed costs to be $225,000. Variable costs are $15 per unit.Instructions(a) Compute break-even sales in dollars using the mathematical equation.(b)

Cost-Volume-Profit18 - 41Ex. 172The Bradshaw Law Office has the following monthly telephone records and costs:Calls2,0001,5002,2002,5002,3001,700Costs$2,4002,0002,6002,8002,7002,200InstructionsIdentify the fixed and variable cost elements using the high-low method.Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC:Problem Solving, IMA: Quantitative MethodsSolution 172(10–15

Cost-Volume-Profit110.18 - 21Nelson 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 the following does not express the break-even point?a. $300,000 + .60X = Xb. $300,000 + .40X = Xc.

Cost-Volume-Profit18 - 41Ex. 172The Bradshaw Law Office has the following monthly telephone records and costs:Calls2,0001,5002,2002,5002,3001,700Costs$2,4002,0002,6002,8002,7002,200InstructionsIdentify the fixed and variable cost elements using the high-low method.Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC:Problem Solving, IMA: Quantitative MethodsSolution 172(10–15

Cost-Volume-Profit110.18 - 21Nelson 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 the following does not express the break-even point?a. $300,000 + .60X = Xb. $300,000 + .40X = Xc.

CHAPTER 19COST-VOLUME-PROFIT ANALYSIS: ADDITIONAL ISSUESSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBTItem556667CKKKKAPa25.88.89.90.91.92.a93.a94.a95.a96.a97.a98.a99.a100.a101.a102.a103.a104.a105.a106.5555566666666667777CKKKKKKKKKKKKKKAPAPAPAPa107.a132.66APAPa134.6777APAPAPAPa152.778KKKLOBT777888CKKKKK7777777777777788888APKKCKKKAPAPAPAPCCCKKCKK77APAP88APAPTrue-False Statements1.2.3.4.5.6.112233KKKKKK7.8.9.10.11.12.333334KAPAPKKK13.14.15.16.17.18.444555CCKKKK19.20.a21.a22.a23.a24.a26.a27.a28.a29.a30.Multiple Choice Questions31.32.33.34.35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.1111111111112222222KKKAPAPAPAPKKAPAPAPKAPAPAPAPAPAP50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.2222222222333333333APKAPAPAPKKAPAPAPKCAPAPAPAPAPAPAP69.70.71.72.73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.3333333444445555555APAPCCAPAPAPCCKAPAPKCCKAPAPCa108.a109.a110.a111.a112.a113.a114.a115.a116.a117.a118.a119.a120.a121.a122.a123.a124.a125.Brief Exercises126.127.33APAP128.129.44APAP130.131.55APAPa133.a135.Exercises136.137.138.139.2, 5333APAPAPAP140.141.142.143.3444APANANAN144.145.146.a147.5556ANAPAPKa148.a149.a150.a151.Completion Statements154.155.156.aThis123KKK157.158.159.345KKK160.a161.a162.566KKKa163.a164.a165.topic is dealt with in an Appendix to the chapter.FOR INSTRUCTOR USE ONLYa153.19 - 2Test Bank for Accounting, Tools for Business Decision Making Fifth EditionSUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPEItemTypeItemType1.2.31.TFTFMC32.33.34.MCMCMC3.4.43.TFTFMC44.45.46.MCMCMC5.6.7.8.9.TFTFTFTFTF10.11.60.61.62.TFTFMCMCMC12.13.14.TFTFTF15.76.77.TFMCMC16.17.18.19.TFTFTFTF20.81.82.83.TFMCMCMC21.22.23.TFTFTF93.94.95.MCMCMC24.25.26.27.103.TFTFTFTFMC104.105.106.107.108.MCMCMCMCMC28.29.TFTF30.121.TFMCItemTypeItemTypeItemLearning Objective

19 - 36 Test Bank for Accounting, Tools for Business Decision Making Fifth EditionSolution 138GreenBrownBlue(cont.)Sales Mix25%45%30%×××60,00060,00060,000===15,000 bikes27,000 bikes18,000 bikesEx. 139DeMont Tax Services provides primarily two lines of service: accounting and tax. Accountingrelated services represent 60% of its revenue and provide a contribution margin ratio of 30%. Taxservices represent 40% of

19 - 36 Test Bank for Accounting, Tools for Business Decision Making Fifth EditionSolution 138GreenBrownBlue(cont.)Sales Mix25%45%30%×××60,00060,00060,000===15,000 bikes27,000 bikes18,000 bikesEx. 139DeMont Tax Services provides primarily two lines of service: accounting and tax. Accountingrelated services represent 60% of its revenue and provide a contribution margin ratio of 30%. Taxservices represent 40% of

Cost-Volume-Profit Analysis: Additional Issues 19 - 21a95.Companies recognize fixed manufacturing overhead costs as period costs (expenses)when incurred when usinga. full costing.b. absorption costing.c. product costing.d. variable costing.Ans: d, LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Reflective Thinking, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC:Project Management, IMA:

Cost-Volume-Profit Analysis: Additional Issues 19 - 21a95.Companies recognize fixed manufacturing overhead costs as period costs (expenses)when incurred when usinga. full costing.b. absorption costing.c. product costing.d. variable costing.Ans: d, LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Reflective Thinking, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC:Project Management, IMA:

CHAPTER 19COST-VOLUME-PROFIT ANALYSIS: ADDITIONAL ISSUESSUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBTItem556667CKKKKAPa25.88.89.90.91.92.a93.a94.a95.a96.a97.a98.a99.a100.a101.a102.a103.a104.a105.a106.5555566666666667777CKKKKKKKKKKKKKKAPAPAPAPa107.a132.66APAPa134.6777APAPAPAPa152.778KKKLOBT777888CKKKKK7777777777777788888APKKCKKKAPAPAPAPCCCKKCKK77APAP88APAPTrue-False Statements1.2.3.4.5.6.112233KKKKKK7.8.9.10.11.12.333334KAPAPKKK13.14.15.16.17.18.444555CCKKKK19.20.a21.a22.a23.a24.a26.a27.a28.a29.a30.Multiple Choice Questions31.32.33.34.35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.1111111111112222222KKKAPAPAPAPKKAPAPAPKAPAPAPAPAPAP50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.2222222222333333333APKAPAPAPKKAPAPAPKCAPAPAPAPAPAPAP69.70.71.72.73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.3333333444445555555APAPCCAPAPAPCCKAPAPKCCKAPAPCa108.a109.a110.a111.a112.a113.a114.a115.a116.a117.a118.a119.a120.a121.a122.a123.a124.a125.Brief Exercises126.127.33APAP128.129.44APAP130.131.55APAPa133.a135.Exercises136.137.138.139.2, 5333APAPAPAP140.141.142.143.3444APANANAN144.145.146.a147.5556ANAPAPKa148.a149.a150.a151.Completion Statements154.155.156.aThis123KKK157.158.159.345KKK160.a161.a162.566KKKa163.a164.a165.topic is dealt with in an Appendix to the chapter.FOR INSTRUCTOR USE ONLYa153.19 - 2Test Bank for Accounting, Tools for Business Decision Making Fifth EditionSUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPEItemTypeItemType1.2.31.TFTFMC32.33.34.MCMCMC3.4.43.TFTFMC44.45.46.MCMCMC5.6.7.8.9.TFTFTFTFTF10.11.60.61.62.TFTFMCMCMC12.13.14.TFTFTF15.76.77.TFMCMC16.17.18.19.TFTFTFTF20.81.82.83.TFMCMCMC21.22.23.TFTFTF93.94.95.MCMCMC24.25.26.27.103.TFTFTFTFMC104.105.106.107.108.MCMCMCMCMC28.29.TFTF30.121.TFMCItemTypeItemTypeItemLearning Objective

2-60Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionSolution 220(25 min.)(b)SNYDER CORPORATIONBalance SheetJuly 31, 2014_____________________________________________________________________________AssetsCurrent assetsCash$20,200Accounts receivable12,780Total current assets$32,980Property, plant, and equipmentEquipment21,000Less: Accumulated depreciation—equipment6,00015,000Total assets$47,980Liabilities and Stockholders' EquityCurrent liabilitiesAccounts payable$ 4,100Salaries and wages payable2,580Total current liabilitiesNotes payable (due 2016)Total liabilitiesStockholders' equityCommon stock16,000Retained earnings23,500Total stockholders' equityTotal liabilities and stockholders'

2. consistency be. 212 each of the following statements is justified by an accounting concept. write the letter in the blank next to each statement corresponding to the concept involved. a. consistency b. materiality c. full disclosure d. periodicity

2-60Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionSolution 220(25 min.)(b)SNYDER CORPORATIONBalance SheetJuly 31, 2014_____________________________________________________________________________AssetsCurrent assetsCash$20,200Accounts receivable12,780Total current assets$32,980Property, plant, and equipmentEquipment21,000Less: Accumulated depreciation—equipment6,00015,000Total assets$47,980Liabilities and Stockholders' EquityCurrent liabilitiesAccounts payable$ 4,100Salaries and wages payable2,580Total current liabilitiesNotes payable (due 2016)Total liabilitiesStockholders' equityCommon stock16,000Retained earnings23,500Total stockholders' equityTotal liabilities and stockholders'

5. prepare a trial balance. a. 1, 2, 3, 5, 4 b. 3, 2, 1, 4, 5 c. 3, 1, 2, 5, 4 d. 3, 1, 2, 4, 5 ____ 8. which of the following describes the timing of when revenue is recognized? a. in the

100. the following information is available for bradshaw corporation and newell corporation: bradshaw corporation newell corporation (in millions) 2014 2013 2014 2013 preferred dividends 25 10 0 30 net income 500 480 490 520 shares outstanding at the 200 180 150 200 end of the

2. consistency be. 212 each of the following statements is justified by an accounting concept. write the letter in the blank next to each statement corresponding to the concept involved. a. consistency b. materiality c. full disclosure d. periodicity

CHAPTER 2A FURTHER LOOK AT FINANCIAL STATEMENTSSUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBTItemLOBT1.2.3.4.5.6.7.8.9.10.11.11111112223KKKKCKCKCKK12.13.14.15.16.17.18.19.20.21.22.33344444555CCKKCKKKKKKItemLOBTItemLOBTItemLOBT77777777777KCKKCKKKKKK45.46.47.48.49.50.51.52.53.54.55.77777777777KKKKKKKKKKK146.147.148.149.150.151.152.153.154.155.156.157.158.159.160.161.162.163.164.165.166.167.168.169.170.171.172.173.174.175.444555555555666677777777777777APAPKKKKAPAPANAPAPCKKKKKKKKKKKKKKKKKK176.177.178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.198.199.200.201.202.203.204.77777777777777777777777777777KCCCKCCCCKCCKKKKCKKKKKCCKKCCC211.212.77CC213.214.77CKTrue-False Statements23.24.25.26.27.28.29.30.31.32.33.55566677777KKCKKKKKKCK34.35.36.37.38.39.40.41.42.43.44.Multiple Choice Questions56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.82.83.84.85.111111111111111111211144111441KKKKKKKKKKKKKKKKAPKKAPAPAPAPAPAPAPAPAPAPAP86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.113.114.115.111144222222222223333333333334APAPAPAPAPAPKAPAPKKCKANANAPANAPAPCKKCCCAPAPANANK116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.140.141.142.143.144.145.205.206.12APAP207.208.34CAP209.210.444444444441444244424444444444KKCKKKKCCKKAPAPAPAPAPAPAPAPAPAPKKKCCCCAPAPBrief Exercises77KKFOR INSTRUCTOR USE ONLY2-2Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionExercises215.216.217.218.111.1, 2, 3, 4APKAPAP219.220.221.222.1, 2, 41, 31, 32231.232.67KK233.234.771-7K12,41, 4KKKAPAPAPAP223.224.225.226.2, 42, 4, 52, 42, 4, 5APAPAPAN227.228.229.230.2, 4, 52, 434KAPAPANKK237.4K238.5KCKK249.4E250.7ECompletion StatementsKK235.236.41Matching239.Short

100. the following information is available for bradshaw corporation and newell corporation: bradshaw corporation newell corporation (in millions) 2014 2013 2014 2013 preferred dividends 25 10 0 30 net income 500 480 490 520 shares outstanding at the 200 180 150 200 end of the

CHAPTER 2A FURTHER LOOK AT FINANCIAL STATEMENTSSUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBTItemLOBT1.2.3.4.5.6.7.8.9.10.11.11111112223KKKKCKCKCKK12.13.14.15.16.17.18.19.20.21.22.33344444555CCKKCKKKKKKItemLOBTItemLOBTItemLOBT77777777777KCKKCKKKKKK45.46.47.48.49.50.51.52.53.54.55.77777777777KKKKKKKKKKK146.147.148.149.150.151.152.153.154.155.156.157.158.159.160.161.162.163.164.165.166.167.168.169.170.171.172.173.174.175.444555555555666677777777777777APAPKKKKAPAPANAPAPCKKKKKKKKKKKKKKKKKK176.177.178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.198.199.200.201.202.203.204.77777777777777777777777777777KCCCKCCCCKCCKKKKCKKKKKCCKKCCC211.212.77CC213.214.77CKTrue-False Statements23.24.25.26.27.28.29.30.31.32.33.55566677777KKCKKKKKKCK34.35.36.37.38.39.40.41.42.43.44.Multiple Choice Questions56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.82.83.84.85.111111111111111111211144111441KKKKKKKKKKKKKKKKAPKKAPAPAPAPAPAPAPAPAPAPAP86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.113.114.115.111144222222222223333333333334APAPAPAPAPAPKAPAPKKCKANANAPANAPAPCKKCCCAPAPANANK116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.140.141.142.143.144.145.205.206.12APAP207.208.34CAP209.210.444444444441444244424444444444KKCKKKKCCKKAPAPAPAPAPAPAPAPAPAPKKKCCCCAPAPBrief Exercises77KKFOR INSTRUCTOR USE ONLY2-2Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionExercises215.216.217.218.111.1, 2, 3, 4APKAPAP219.220.221.222.1, 2, 41, 31, 32231.232.67KK233.234.771-7K12,41, 4KKKAPAPAPAP223.224.225.226.2, 42, 4, 52, 42, 4, 5APAPAPAN227.228.229.230.2, 4, 52, 434KAPAPANKK237.4K238.5KCKK249.4E250.7ECompletion StatementsKK235.236.41Matching239.Short

Incremental Analysis166.20 - 41All of the following are relevant in deciding whether to eliminate an unprofitable segmentexcept the segment'sa. sales.b. variable expenses.c. contribution margin.d. fixed expenses.Ans: D, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: ProblemSolving, IMA: Business

Incremental Analysis91.20 - 21Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 perunit; however, $5 per unit is unavoidable. Should Truckel make or buy the wickets?a. Buy;

Incremental AnalysisSolution 18820 - 55(15–20 min.)(a)Direct Materials (50,000 × $8)Direct Labor (50,000 × $9)Variable Manufacturing Costs($450,000 × 60%)Fixed Manufacturing CostsPurchase Price (50,000 × $21)Total annual costMake$ 400,000450,000Buy$-0-0-270,00030,000-0$1,150,000-030,0001,050,000$1,080,000Net IncomeIncrease (Decrease)$ 400,000450,000270,000-0(1,050,000)$ 70,000(b) The seats should be purchased from the outside supplier. As indicated, the company's netincome would increase $70,000 by purchasing

Incremental AnalysisSolution 18820 - 55(15–20 min.)(a)Direct Materials (50,000 × $8)Direct Labor (50,000 × $9)Variable Manufacturing Costs($450,000 × 60%)Fixed Manufacturing CostsPurchase Price (50,000 × $21)Total annual costMake$ 400,000450,000Buy$-0-0-270,00030,000-0$1,150,000-030,0001,050,000$1,080,000Net IncomeIncrease (Decrease)$ 400,000450,000270,000-0(1,050,000)$ 70,000(b) The seats should be purchased from the outside supplier. As indicated, the company's netincome would increase $70,000 by purchasing

1. identify the steps in management's decision-making process. management's decision- making process consists of (a) identifying the problem and assigning responsibility for the decision, (b) determining and evaluating possible courses of action, (c) making the decision,

Incremental Analysis166.20 - 41All of the following are relevant in deciding whether to eliminate an unprofitable segmentexcept the segment'sa. sales.b. variable expenses.c. contribution margin.d. fixed expenses.Ans: D, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Decision Modeling, AICPA PC: ProblemSolving, IMA: Business

1. identify the steps in management's decision-making process. management's decision- making process consists of (a) identifying the problem and assigning responsibility for the decision, (b) determining and evaluating possible courses of action, (c) making the decision,

Budgetary Planning21 - 41Ex. 171Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted unitsto be produced are as follows:Units of Product2013RegularDeluxeTotalJuly10,00015,00025,000August6,00010,00016,000September9,00014,00023,000October8,00012,00020,000It takes 2 pounds of direct materials to produce the Regular product and 5 pounds of direct materialsto produce the Deluxe product. It is the company's policy

Budgetary Planning21 - 55Ex. 187Clay Co.’s projected sales are as follows:AugustSeptemberOctober$400,000$450,000$550,000Clay estimates that it will collect 30% in the month of sale, 50% in the month after the sale, and18% in the second month following the sale. Two percent of all sales are estimated to be baddebts.InstructionsHow much are Clay

1. identify the benefits of budgeting. the primary advantages of budgeting are that it (a) requires management to plan ahead, (b) provides definite objectives for evaluating

Budgetary Planning103.21 - 21Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales willincrease by 18,000 units each quarter over the year. They have, and desire, a 25%ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash.70% of

Budgetary Planning21 - 55Ex. 187Clay Co.’s projected sales are as follows:AugustSeptemberOctober$400,000$450,000$550,000Clay estimates that it will collect 30% in the month of sale, 50% in the month after the sale, and18% in the second month following the sale. Two percent of all sales are estimated to be baddebts.InstructionsHow much are Clay

1. identify the benefits of budgeting. the primary advantages of budgeting are that it (a) requires management to plan ahead, (b) provides definite objectives for evaluating

Budgetary Planning21 - 41Ex. 171Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted unitsto be produced are as follows:Units of Product2013RegularDeluxeTotalJuly10,00015,00025,000August6,00010,00016,000September9,00014,00023,000October8,00012,00020,000It takes 2 pounds of direct materials to produce the Regular product and 5 pounds of direct materialsto produce the Deluxe product. It is the company's policy

Budgetary Planning103.21 - 21Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales willincrease by 18,000 units each quarter over the year. They have, and desire, a 25%ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash.70% of

Budgetary Planning and Responsibility Accounting22 - 41Ex. 182Cody Co. developed its annual manufacturing overhead budget for its master budget for 2013 asfollows:Expected annual operating capacityVariable overhead costsIndirect laborIndirect materialsFactory suppliesTotal variableFixed overhead costsDepreciationSupervisionProperty taxesTotal fixedTotal costs120,000 Direct Labor Hours$600,000120,00060,000780,000240,000120,00096,000456,000$1,236,000The relevant range for monthly activity is expected to be between 8,000

1. describe the concept of budgetary control. budgetary control consists of (a) preparing periodic budget reports that compare actual results with planned objectives, (b) analyzing the differences to determine their causes, (c)

Budgetary Planning and Responsibility Accounting104.22 - 21A cost centera. 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. is a responsibility center which generates profits and evaluates the investment cost ofearning the profit.Ans: A, LO:

Budgetary Planning and Responsibility Accounting22 - 41Ex. 182Cody Co. developed its annual manufacturing overhead budget for its master budget for 2013 asfollows:Expected annual operating capacityVariable overhead costsIndirect laborIndirect materialsFactory suppliesTotal variableFixed overhead costsDepreciationSupervisionProperty taxesTotal fixedTotal costs120,000 Direct Labor Hours$600,000120,00060,000780,000240,000120,00096,000456,000$1,236,000The relevant range for monthly activity is expected to be between 8,000

1. describe the concept of budgetary control. budgetary control consists of (a) preparing periodic budget reports that compare actual results with planned objectives, (b) analyzing the differences to determine their causes, (c)

Budgetary Planning and Responsibility AccountingSolution 19622 - 53(Cont.)(b)DANNER CO.Women's Shoe DivisionResponsibility ReportFor the Month Ended June 30, 2013_____________________________________________________________________________DifferenceFavorable FBudgetActualUnfavorable USales$800,000$800,000$0Variable costs500,000520,00020,000 UContribution margin300,000280,00020,000 UControllable fixed costs130,000130,0000Controllable margin$170,000$150,000$20,000 UEx. 197The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for thedivision were budgeted for 2013 at

Budgetary Planning and Responsibility AccountingSolution 19622 - 53(Cont.)(b)DANNER CO.Women's Shoe DivisionResponsibility ReportFor the Month Ended June 30, 2013_____________________________________________________________________________DifferenceFavorable FBudgetActualUnfavorable USales$800,000$800,000$0Variable costs500,000520,00020,000 UContribution margin300,000280,00020,000 UControllable fixed costs130,000130,0000Controllable margin$170,000$150,000$20,000 UEx. 197The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for thedivision were budgeted for 2013 at

Budgetary Planning and Responsibility Accounting104.22 - 21A cost centera. 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. is a responsibility center which generates profits and evaluates the investment cost ofearning the profit.Ans: A, LO:

Standard Costs and Balanced Scorecard23 - 41BE 192Labor 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) Quantity—actualproduction time 1.1 hours, rest periods and clean up 0.25 hours, and setup and downtime

Standard Costs and Balanced Scorecard23 - 41BE 192Labor 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) Quantity—actualproduction time 1.1 hours, rest periods and clean up 0.25 hours, and setup and downtime

23 - 58 test bank for accounting, tools for business decision making fifth edition solution 216 (40–45 min.) (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 =

Standard Costs and Balanced Scorecard104.23 - 21Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds ofmaterials were purchased at $2.20 a pound. The actual quantity of materials used was6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds.Edgar, Inc.'s materials quantity variance

Standard Costs and Balanced Scorecard104.23 - 21Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds ofmaterials were purchased at $2.20 a pound. The actual quantity of materials used was6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds.Edgar, Inc.'s materials quantity variance

2. identify the advantages of standard costs. standard costs offer a number of advantages. they (a) facilitate management planning, (b) promote greater economy (c) are useful in setting selling prices, (d) contribute

2. identify the advantages of standard costs. standard costs offer a number of advantages. they (a) facilitate management planning, (b) promote greater economy (c) are useful in setting selling prices, (d) contribute

23 - 58 test bank for accounting, tools for business decision making fifth edition solution 216 (40–45 min.) (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 =

24-40Test Bank for Accounting, Tools for Business Decision Making Fifth EditionEx. 167Cepeda Manufacturing Company is considering three new projects, each requiring an equipmentinvestment of $22,000. Each project will last for 3 years and produce the following cash inflows.Year123TotalAA$ 7,0009,00015,000$31,000BB$ 9,5009,5009,500$28,500CC$11,00010,0009,000$30,000The equipment's salvage value is zero. Cepeda uses straight-line depreciation. Cepeda

Planning for Capital Investments99.24-21A 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 wasa. $66,000.b. $80,180.c. $60,000.d. $62,424.Ans: c, LO: 5, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB:

CHAPTER 24PLANNING FOR CAPITAL INVESTMENTSSUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBT66677KCKKK107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.573572378666777777777777777APAPAPAPAPAPAPAPAPKKCKCAPKCKCCKAPAPCCCC164.165.78EAPItemLOBT21.22.23.24.25.78888CCKKC134.135.136.137.138.139.140.141.142.143.144.145.146.147.148.149.150.151.152.153.154.155.156.157.777788888888888828888888KCKAPAPAPCAPKKKANANANAPAPAPKKCAPCKCTrue-False Statements1.2.3.4.5.11122KKCCK6.7.8.9.10.23334CKCCK11.12.13.14.15.44555CCKKC16.17.18.19.20.Multiple Choice Questions26.27.28.29.30.31.32.33.34.35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.111111111111222222222222222KKKKKKCKKKKCCKKAPAPAPCKKAPCCKKC53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.222233333333333333333333333APAPAPAPAPAPKKCCANKCKCKCCCKKKCANAPAPAN80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.444444455555555555555555553KANKKCCKKCKKCKAPKCCCAPAPAPAPCCCCAPBrief Exercises158.159.23APE160.161.33,5APE162.163.3,46ANE24-2Test Bank for Accounting, Tools for Business Decision Making Fifth EditionExercises166.167.168.169.*2,32,3,82,3,8EEAPAP170. 2,3,7171. 2,3,8172. 2,3,8173.**ANAPEE174.175.176.177.2,83,43,53,5APEEE178. 3,5,7179. 3,5,8180. 3,6181. 3,7EEEE182.7APKK191.192.78KKCompletion Statements183.184.12KK185.186.33KK187.188.34KK189.190.56*1,2,3,5,7**2,3,5,7,8SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPEItemTypeItemTypeItem1.2.3.TFTFTF26.27.28.MCMCMC29.30.31.4.5.6.38.39.TFTFTFMCMC40.41.42.43.44.MCMCMCMCMC45.46.47.48.49.7.8.9.56.57.58.59.TFTFTFMCMCMCMC60.61.62.65.66.67.68.MCMCMCMCMCMCMC69.70.71.72.73.74.75.10.11.TFTF12.80.TFMC81.82.13.14.15.87.88.TFTFTFMCMC89.90.91.92.93.MCMCMCMCMC94.95.96.97.98.16.17.TFTF18.116.TFMC117.118.TypeItemTypeItemLearning Objective 1MC32. MC35.MC33. MC36.MC34. MC37.Learning Objective 2MC50. MC55.MC51. MC112.MC52. MC158.MC53.

CHAPTER 24PLANNING FOR CAPITAL INVESTMENTSSUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBT66677KCKKK107.108.109.110.111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.573572378666777777777777777APAPAPAPAPAPAPAPAPKKCKCAPKCKCCKAPAPCCCC164.165.78EAPItemLOBT21.22.23.24.25.78888CCKKC134.135.136.137.138.139.140.141.142.143.144.145.146.147.148.149.150.151.152.153.154.155.156.157.777788888888888828888888KCKAPAPAPCAPKKKANANANAPAPAPKKCAPCKCTrue-False Statements1.2.3.4.5.11122KKCCK6.7.8.9.10.23334CKCCK11.12.13.14.15.44555CCKKC16.17.18.19.20.Multiple Choice Questions26.27.28.29.30.31.32.33.34.35.36.37.38.39.40.41.42.43.44.45.46.47.48.49.50.51.52.111111111111222222222222222KKKKKKCKKKKCCKKAPAPAPCKKAPCCKKC53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.222233333333333333333333333APAPAPAPAPAPKKCCANKCKCKCCCKKKCANAPAPAN80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.444444455555555555555555553KANKKCCKKCKKCKAPKCCCAPAPAPAPCCCCAPBrief Exercises158.159.23APE160.161.33,5APE162.163.3,46ANE24-2Test Bank for Accounting, Tools for Business Decision Making Fifth EditionExercises166.167.168.169.*2,32,3,82,3,8EEAPAP170. 2,3,7171. 2,3,8172. 2,3,8173.**ANAPEE174.175.176.177.2,83,43,53,5APEEE178. 3,5,7179. 3,5,8180. 3,6181. 3,7EEEE182.7APKK191.192.78KKCompletion Statements183.184.12KK185.186.33KK187.188.34KK189.190.56*1,2,3,5,7**2,3,5,7,8SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPEItemTypeItemTypeItem1.2.3.TFTFTF26.27.28.MCMCMC29.30.31.4.5.6.38.39.TFTFTFMCMC40.41.42.43.44.MCMCMCMCMC45.46.47.48.49.7.8.9.56.57.58.59.TFTFTFMCMCMCMC60.61.62.65.66.67.68.MCMCMCMCMCMCMC69.70.71.72.73.74.75.10.11.TFTF12.80.TFMC81.82.13.14.15.87.88.TFTFTFMCMC89.90.91.92.93.MCMCMCMCMC94.95.96.97.98.16.17.TFTF18.116.TFMC117.118.TypeItemTypeItemLearning Objective 1MC32. MC35.MC33. MC36.MC34. MC37.Learning Objective 2MC50. MC55.MC51. MC112.MC52. MC158.MC53.

24-40Test Bank for Accounting, Tools for Business Decision Making Fifth EditionEx. 167Cepeda Manufacturing Company is considering three new projects, each requiring an equipmentinvestment of $22,000. Each project will last for 3 years and produce the following cash inflows.Year123TotalAA$ 7,0009,00015,000$31,000BB$ 9,5009,5009,500$28,500CC$11,00010,0009,000$30,000The equipment's salvage value is zero. Cepeda uses straight-line depreciation. Cepeda

Planning for Capital Investments99.24-21A 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 wasa. $66,000.b. $80,180.c. $60,000.d. $62,424.Ans: c, LO: 5, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB:

0. cash a. asset account b. debit increases, credit decreases c. normal balance - debit accounts 1. a. liability account. 5. a. revenue account. b. debit decreases, credit increases. b. debit decreases, credit increases. c. normal balance –

1. analyze the effect of business transactions on the basic accounting equation. each business transaction must have a dual effect on the accounting equation. for example, if an individual asset is increased, there must be a corresponding (a)

1. the trial balance is difficult to read because a. the title is not explanatory b. account abbreviations are used c. the numbers are not shown in standard currency format d. debits and credits are not separately shown, but are indicated by a "-"

The Accounting Information System3-41Be. 222For each of the following accounts indicate the effect of a debit or a credit on the account and thenormal balance. Increase (+), Decrease (–).1. Salaries and Wages Expense.Debit________Credit_______Normal Balance_______2. Accounts Receivable.____________________3. Service Revenue.____________________4. Dividends____________________5. Retained Earnings.____________________Ans: N/A, LO: 3, Bloom: K, Difficulty: Medium, Min: 5,

The Accounting Information System3-41Be. 222For each of the following accounts indicate the effect of a debit or a credit on the account and thenormal balance. Increase (+), Decrease (–).1. Salaries and Wages Expense.Debit________Credit_______Normal Balance_______2. Accounts Receivable.____________________3. Service Revenue.____________________4. Dividends____________________5. Retained Earnings.____________________Ans: N/A, LO: 3, Bloom: K, Difficulty: Medium, Min: 5,

1. the trial balance is difficult to read because a. the title is not explanatory b. account abbreviations are used c. the numbers are not shown in standard currency format d. debits and credits are not separately shown, but are indicated by a "-"

1. analyze the effect of business transactions on the basic accounting equation. each business transaction must have a dual effect on the accounting equation. for example, if an individual asset is increased, there must be a corresponding (a)

The Accounting Information System120.3-21For the basic accounting equation to stay in balance, each transaction recorded musta. affect two or less accounts.b. affect two or more accounts.c. always affect exactly two accounts.d. affect the same number of asset and liability accounts.Ans: B, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB:

The Accounting Information System120.3-21For the basic accounting equation to stay in balance, each transaction recorded musta. affect two or less accounts.b. affect two or more accounts.c. always affect exactly two accounts.d. affect the same number of asset and liability accounts.Ans: B, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB:

achievement test 3: chapters 5 and 6 name __________________________ accounting instructor _______________________ kimmel, weygandt, and kieso section # _______ date _________ part total points 30 30 18 12 10 100 score part i — multiple choice (30 points) instructions:

0. cash a. asset account b. debit increases, credit decreases c. normal balance - debit accounts 1. a. liability account. 5. a. revenue account. b. debit decreases, credit increases. b. debit decreases, credit increases. c. normal balance –

Accrual Accounting Concepts4-41purchased supplies for $950 and consumed supplies of $700. If no adjusting entry is madefor supplies:a. stockholders' equity will be overstated by $700.b. expenses will be understated by $950.c. assets will be understated by $450.d. net income will be understated by $700.Ans: A, LO 4, BT: AN, Difficulty:

8. describe the required steps in the accounting cycle. the required steps in the accounting cycle are (a) analyze business transactions, (b) journalize the transactions, (c) post to ledger accounts, (d) prepare a trial balance, (e) journalize and post adjusting entries, (f) prepare an adjusted trial balance,

8. describe the required steps in the accounting cycle. the required steps in the accounting cycle are (a) analyze business transactions, (b) journalize the transactions, (c) post to ledger accounts, (d) prepare a trial balance, (e) journalize and post adjusting entries, (f) prepare an adjusted trial balance,

290. match the items below by entering the appropriate code letter in the space provided. a. periodicity assumption f. accrued revenues b. cash basis g. depreciation c. revenue recognition principle h. post-closing trial balance d. prepaid expenses

2. on january 1, 2013, paid for a two-year insurance policy on the automobile amounting to $1,600. this amount is included in the expenses above. instructions: (a) recast the above income statement on

2. on january 1, 2013, paid for a two-year insurance policy on the automobile amounting to $1,600. this amount is included in the expenses above. instructions: (a) recast the above income statement on

Accrual Accounting Concepts4-41purchased supplies for $950 and consumed supplies of $700. If no adjusting entry is madefor supplies:a. stockholders' equity will be overstated by $700.b. expenses will be understated by $950.c. assets will be understated by $450.d. net income will be understated by $700.Ans: A, LO 4, BT: AN, Difficulty:

Accrual Accounting Concepts89.4-21Which 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: Easy, TOT: 1 min., AACSB: Ethics, AICPA BB: None, AICPA FN: Risk Analysis, AICPA PC: Professional Demeanor90.Why was

3. the unearned ticket revenue represents tickets sold for future zoo visits. the tickets were sold at $4.00 each on april 1. during april, twenty of the tickets were used by customers. instructions: (a) calculate the following: 3. the number of tickets sold on april 1.

achievement test 4: chapters 7 and 8 name __________________________ accounting instructor _______________________ kimmel, weygandt, & kieso section # _______ date _________ part total points 30 12 18 11 20 9 100 score part i — multiple choice (30 points)

Accrual Accounting Concepts89.4-21Which 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: Easy, TOT: 1 min., AACSB: Ethics, AICPA BB: None, AICPA FN: Risk Analysis, AICPA PC: Professional Demeanor90.Why was

5. on april 15 paid the amount due to buehler company in full. instructions (a) prepare the journal entries to record these transactions on the books of tandi co. using a periodic inventory system. (b) assume that tandi co. paid the balance due to buehler company

Merchandising Operations5-41Answers to Multiple Choice Questions53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.ccbdbcbdaccaababdbab73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.bddccadabbadcaabbbdc93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.cadbbcaabddbcccadcbd113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.bdccdacdbbcacdacbcdc133.134.135.136.137.138.139.140.141.142.143.144.145.146.147.148.149.150.151.152.cbacddccbadbbddcccdc153.154.155.156.157.158.159.160.161.162.163.164.165.166.167.168.169.170.171.172.FOR INSTRUCTOR USE ONLYcabdcbbcdbbbdbcadbac173.174.175.176.177.178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.dacacbbbbddacdcbbadc193.194.195.196.197.198.199.200.201.202.*203.*204.*205.*206.cbcdccccaacbdcTest Bank for Accounting: Tools for Business Decision Making, Fifth Edition5-42BRIEF EXERCISESBe. 207Presented here are the components in Rowland Company’s income statement. Determine themissing amounts.SalesRevenue_$75,000(c)Cost ofGoods Sold(a)$56,000Gross_Profit$35,000$59,000OperatingExpenses(b)$48,000NetIncome$17,000(d)Ans: N/A, LO: 1,4, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective,

Merchandising Operations118.5-21The collection of an $900 account within the 2 percent discount period will result in aa. debit to Sales Discounts for $18.b. debit to Accounts Receivable for $882.c. credit to Cash for $882.d. credit to Accounts Receivable for $882.Ans: A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 2, AACSB:

Merchandising Operations5-41Answers to Multiple Choice Questions53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.ccbdbcbdaccaababdbab73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.bddccadabbadcaabbbdc93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.cadbbcaabddbcccadcbd113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.bdccdacdbbcacdacbcdc133.134.135.136.137.138.139.140.141.142.143.144.145.146.147.148.149.150.151.152.cbacddccbadbbddcccdc153.154.155.156.157.158.159.160.161.162.163.164.165.166.167.168.169.170.171.172.FOR INSTRUCTOR USE ONLYcabdcbbcdbbbdbcadbac173.174.175.176.177.178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.dacacbbbbddacdcbbadc193.194.195.196.197.198.199.200.201.202.*203.*204.*205.*206.cbcdccccaacbdcTest Bank for Accounting: Tools for Business Decision Making, Fifth Edition5-42BRIEF EXERCISESBe. 207Presented here are the components in Rowland Company’s income statement. Determine themissing amounts.SalesRevenue_$75,000(c)Cost ofGoods Sold(a)$56,000Gross_Profit$35,000$59,000OperatingExpenses(b)$48,000NetIncome$17,000(d)Ans: N/A, LO: 1,4, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective,

CHAPTER 5MERCHANDISING OPERATIONSSUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBT44444444445CKKKKKKKKCK33444444444444444444466466446ANCKKKKKKKKKKKKKKKKKKAPAPAPAPAPAPAPAPAPItemLOBT45.46.47.48.49.50.51.52.566677*8*8KAPCKKKKK169.170.171.172.173.174.175.176.177.178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.6446644555,65,6555555556666666666APAPAPAPAPCKCCAPAPAPAPKKANKAPAPKAPKKKCAPAPAPAPTrue-False Statements1.2.3.4.5.6.7.8.9.10.11.11111111111KKKKKCCKCKK12.13.14.15.16.17.18.19.20.21.22.1111222222253.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.11111111111111111111111111111KKKKKKKKKKKKCKKKKKKKKKKKKCKKC82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.22222222222222222222222233333KKKKKKKKKAPC23.24.25.26.27.28.29.30.31.32.33.33333333333KKKKKKKCKAPK34.35.36.37.38.39.40.41.42.43.44.Multiple Choice QuestionsKAPAPCAPCCAPAPKANAPAPANAPANKAPCCAPAPKKKKKAPAP111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.33333333333333333333333333333APAPKKAPAPAPAPAPKAPCCKKCAPAPAPKAPAPAPAPKKKAPAP140.141.142.143.144.145.146.147.148.149.150.151.152.153.154.155.156.157.158.159.160.161.162.163.164.165.166.167.168.FOR INSTRUCTOR USE ONLY5-2Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionMultiple Choice Questions (Cont.)198.199.66CAP200.201.66APAP202.*203.207.208.1,42,3APAP209.210.2,33APAP211.212.215.2216. 2217. 2,3218. 2,3219. 2,3APAPAPAPAP220.221.222.223.224.2,32,32,333APAPAPAPAP225.226.227.228.229.239.240.12KK68APAP*204.*205.88APAP*206.8AP213.214.56APAP230.231.232.*233.*234.55688APAPAPAPAP*235.*236.88APAP33KK245.246.46KK22CCBrief Exercises45APAPExercises44,64,64,64,6KAPAPAPAPCompletion Statements237.238.11KK247.1-6K248.249.250.133CCC241.242.23KK243.244.MatchingShort-Answer Essay Questions*251.252.253.344CCC254.255.256.466CCK257.258.This topic is dealt with in an Appendix to the chapter.SUMMARY OF LEARNING

CHAPTER 5MERCHANDISING OPERATIONSSUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBTItemLOBTItemLOBTItemLOBT44444444445CKKKKKKKKCK33444444444444444444466466446ANCKKKKKKKKKKKKKKKKKKAPAPAPAPAPAPAPAPAPItemLOBT45.46.47.48.49.50.51.52.566677*8*8KAPCKKKKK169.170.171.172.173.174.175.176.177.178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.6446644555,65,6555555556666666666APAPAPAPAPCKCCAPAPAPAPKKANKAPAPKAPKKKCAPAPAPAPTrue-False Statements1.2.3.4.5.6.7.8.9.10.11.11111111111KKKKKCCKCKK12.13.14.15.16.17.18.19.20.21.22.1111222222253.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.11111111111111111111111111111KKKKKKKKKKKKCKKKKKKKKKKKKCKKC82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.22222222222222222222222233333KKKKKKKKKAPC23.24.25.26.27.28.29.30.31.32.33.33333333333KKKKKKKCKAPK34.35.36.37.38.39.40.41.42.43.44.Multiple Choice QuestionsKAPAPCAPCCAPAPKANAPAPANAPANKAPCCAPAPKKKKKAPAP111.112.113.114.115.116.117.118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.33333333333333333333333333333APAPKKAPAPAPAPAPKAPCCKKCAPAPAPKAPAPAPAPKKKAPAP140.141.142.143.144.145.146.147.148.149.150.151.152.153.154.155.156.157.158.159.160.161.162.163.164.165.166.167.168.FOR INSTRUCTOR USE ONLY5-2Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionMultiple Choice Questions (Cont.)198.199.66CAP200.201.66APAP202.*203.207.208.1,42,3APAP209.210.2,33APAP211.212.215.2216. 2217. 2,3218. 2,3219. 2,3APAPAPAPAP220.221.222.223.224.2,32,32,333APAPAPAPAP225.226.227.228.229.239.240.12KK68APAP*204.*205.88APAP*206.8AP213.214.56APAP230.231.232.*233.*234.55688APAPAPAPAP*235.*236.88APAP33KK245.246.46KK22CCBrief Exercises45APAPExercises44,64,64,64,6KAPAPAPAPCompletion Statements237.238.11KK247.1-6K248.249.250.133CCC241.242.23KK243.244.MatchingShort-Answer Essay Questions*251.252.253.344CCC254.255.256.466CCK257.258.This topic is dealt with in an Appendix to the chapter.SUMMARY OF LEARNING

5. on april 15 paid the amount due to buehler company in full. instructions (a) prepare the journal entries to record these transactions on the books of tandi co. using a periodic inventory system. (b) assume that tandi co. paid the balance due to buehler company

achievement test 5: chapters 9 and 10 name __________________________ accounting instructor _______________________ kimmel, weygandt, & kieso section # _______ date _________ part total points 26 6 28 9 16 15 100 score part i — multiple choice (26 points)

Merchandising Operations118.5-21The collection of an $900 account within the 2 percent discount period will result in aa. debit to Sales Discounts for $18.b. debit to Accounts Receivable for $882.c. credit to Cash for $882.d. credit to Accounts Receivable for $882.Ans: A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 2, AACSB:

achievement test 6: chapters 11-13 name __________________________ accounting instructor _______________________ kimmel, weygandt, & kieso section # _______ date _________ part total points 36 6 6 10 12 10 20 100 score part i — multiple choice (36 points) instructions:

Reporting and Analyzing InventorySolution 207(c)6-61(Cont.)There are 120 units in ending inventory. They are comprised of the first units purchasedwhen LIFO is assumed.3/[email protected] $40=$4,0003/[email protected] $50=1,000120 units$5,000 = Ending inventoryEx. 208Torrey Company uses the periodic inventory system to account for inventories. Informationrelated to Torrey Company's inventory at October 31 is given below:October181624Beginning

2. explain the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system. the primary basis of accounting for

Reporting and Analyzing Inventory6-75*Ex. 222Condensed income statements for Werly Corporation are shown below for two years.SalesCost of Goods SoldGross ProfitOperating ExpenseNet Income20132014$75,00045,000$30,00015,000$15,000$90,00054,000$36,00015,000$21,000Compute the corrected net income for 2013 and 2014 assuming that the inventory as of the endof 2013 was mistakenly overstated by $5,000.2013$ __________2014 $__________Ans: N/A, LO: 8, Bloom:

Reporting and Analyzing Inventory86.6-21Which of the following terms best describes the assumption made in applying the fourinventory methods?a. Goods flowb. Cost flowc. Asset flowd. Physical flowAns: B, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:Reporting87.An assumption about

Reporting and Analyzing Inventory6-75*Ex. 222Condensed income statements for Werly Corporation are shown below for two years.SalesCost of Goods SoldGross ProfitOperating ExpenseNet Income20132014$75,00045,000$30,00015,000$15,000$90,00054,000$36,00015,000$21,000Compute the corrected net income for 2013 and 2014 assuming that the inventory as of the endof 2013 was mistakenly overstated by $5,000.2013$ __________2014 $__________Ans: N/A, LO: 8, Bloom:

Reporting and Analyzing Inventory168.6-41Redeker Company had the following records:Ending inventoryCost of goods sold2014$34,580182,0002013$32,650163,5002012$30,490174,200What is Redeker’s average days in inventory for 2014? (rounded)a. 67.6 daysb. 66.4 daysc. 68.9 daysd. 68.25 daysAns: A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:Problem

Reporting and Analyzing Inventory86.6-21Which of the following terms best describes the assumption made in applying the fourinventory methods?a. Goods flowb. Cost flowc. Asset flowd. Physical flowAns: B, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:Reporting87.An assumption about

2. explain the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system. the primary basis of accounting for

Reporting and Analyzing InventorySolution 207(c)6-61(Cont.)There are 120 units in ending inventory. They are comprised of the first units purchasedwhen LIFO is assumed.3/[email protected] $40=$4,0003/[email protected] $50=1,000120 units$5,000 = Ending inventoryEx. 208Torrey Company uses the periodic inventory system to account for inventories. Informationrelated to Torrey Company's inventory at October 31 is given below:October181624Beginning

Reporting and Analyzing Inventory168.6-41Redeker Company had the following records:Ending inventoryCost of goods sold2014$34,580182,0002013$32,650163,5002012$30,490174,200What is Redeker’s average days in inventory for 2014? (rounded)a. 67.6 daysb. 66.4 daysc. 68.9 daysd. 68.25 daysAns: A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:Problem

256. match the items below by entering the appropriate code letter in the space provided. a. prenumbered documents g. cash budget b. custody of an asset should be kept h. restricted cash separate from the record-keeping i. invest

CHAPTER 7FRAUD, INTERNAL CONTROL, AND CASHSUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBTItemLO1.2.3.4.5.6.7.8.11222222KKKKKKKK9.10.11.12.13.14.15.16.2222222240.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.112222222222222222222222222222222CKKKKKKKKKKKKKKKKKCCKKKKKKKKKCKKK73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.222222233333333444444444444444444BTItem LOBTItemTrue-False StatementsK17.2K25.K18.2K26.K19.2K27.K20.2K28.K21.3K29.K22.3K30.K23.3K31.K24.4K32.Multiple Choice QuestionsK106.4K139.K107.5K140.K108.5K141.K109.5K142.K110.5K143.C111.5K144.C112.5K145.K113.5K146.K114.5K147.K115.5K148.K116.5K149.K117.5K150.K118.5AP151.K119.5AP152.K120.5AP153.K121.5AP154.K122.5AP155.K123.5AP156.K124.5K157.K125.5K158.K126.5K159.K127.5AP160.K128.5AP161.K129.5AP162.K130.5AP163.K131.5AP164.K132.5AP165.C133.5K166.K134.5AP167.K135.5AP168.K136.5AP169.K137.5K170.C138.5AP171.FOR INSTRUCTOR USE ONLYLOBTItemLOBT44555566KKKKKKKK33.34.35.36.37.*38.*39.6678899KKKKKKK555555555555555666666777778888888APCCCCAPAPAPAPAPAPAPAPAPAPCKKKKKKKKKKKAPAPAPKAPAP172.173.174.175.176.177.178.179.180.181.182.183.184.185.*186.*187.*188.*189.*190.*191.*192.*193.*194.*195.*196.*197.*198.*199.*200.88888888888888999999999999999APKKAPAPCAPAPAPAPAPKAPAPKKCKAPKAPAPAPAPAPAPAPKK7-2Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition201.202.203.223KKK204.205.206.455212.213.214.215.216.217.225555CANAPAPAPAP218.219.220.221.222.223.555555239.240.241.242.1111KKKK243.244.245.246.2224256.1-7KBrief Exercises207.5AP210.208.5AP211.209.5APExercisesAP 224.5AN230.AP 225.5AN231.AP 226.5C232.K227.5AP233.AP 228.5AP234.AP 229.5AP *235.Completion StatementsK247.4K251.K248.5K252.K249.5K253.K250.5K*254.MatchingKKKShort Answer Essay257.1K259.2C261.2C263.258.2C260.2E262.4K264.*This topic is dealt with in an Appendix to the

5. segregation of duties be. 205 identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank reconciliation.

5. segregation of duties be. 205 identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank reconciliation.

256. match the items below by entering the appropriate code letter in the space provided. a. prenumbered documents g. cash budget b. custody of an asset should be kept h. restricted cash separate from the record-keeping i. invest

Fraud, Internal Control, and Cash111.7-21Which of the following would be deducted from the balance per bank on a bankreconciliation?a. Outstanding checks.b. Deposits in transit.c. Notes collected by the bank.d. Service charges.Ans: A, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA

Fraud, Internal Control, and Cash111.7-21Which of the following would be deducted from the balance per bank on a bankreconciliation?a. Outstanding checks.b. Deposits in transit.c. Notes collected by the bank.d. Service charges.Ans: A, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA

CHAPTER 7FRAUD, INTERNAL CONTROL, AND CASHSUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMYItemLOBTItemLO1.2.3.4.5.6.7.8.11222222KKKKKKKK9.10.11.12.13.14.15.16.2222222240.41.42.43.44.45.46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.112222222222222222222222222222222CKKKKKKKKKKKKKKKKKCCKKKKKKKKKCKKK73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.222222233333333444444444444444444BTItem LOBTItemTrue-False StatementsK17.2K25.K18.2K26.K19.2K27.K20.2K28.K21.3K29.K22.3K30.K23.3K31.K24.4K32.Multiple Choice QuestionsK106.4K139.K107.5K140.K108.5K141.K109.5K142.K110.5K143.C111.5K144.C112.5K145.K113.5K146.K114.5K147.K115.5K148.K116.5K149.K117.5K150.K118.5AP151.K119.5AP152.K120.5AP153.K121.5AP154.K122.5AP155.K123.5AP156.K124.5K157.K125.5K158.K126.5K159.K127.5AP160.K128.5AP161.K129.5AP162.K130.5AP163.K131.5AP164.K132.5AP165.C133.5K166.K134.5AP167.K135.5AP168.K136.5AP169.K137.5K170.C138.5AP171.FOR INSTRUCTOR USE ONLYLOBTItemLOBT44555566KKKKKKKK33.34.35.36.37.*38.*39.6678899KKKKKKK555555555555555666666777778888888APCCCCAPAPAPAPAPAPAPAPAPAPCKKKKKKKKKKKAPAPAPKAPAP172.173.174.175.176.177.178.179.180.181.182.183.184.185.*186.*187.*188.*189.*190.*191.*192.*193.*194.*195.*196.*197.*198.*199.*200.88888888888888999999999999999APKKAPAPCAPAPAPAPAPKAPAPKKCKAPKAPAPAPAPAPAPAPKK7-2Test Bank for Accounting: Tools for Business Decision Making, Fifth Edition201.202.203.223KKK204.205.206.455212.213.214.215.216.217.225555CANAPAPAPAP218.219.220.221.222.223.555555239.240.241.242.1111KKKK243.244.245.246.2224256.1-7KBrief Exercises207.5AP210.208.5AP211.209.5APExercisesAP 224.5AN230.AP 225.5AN231.AP 226.5C232.K227.5AP233.AP 228.5AP234.AP 229.5AP *235.Completion StatementsK247.4K251.K248.5K252.K249.5K253.K250.5K*254.MatchingKKKShort Answer Essay257.1K259.2C261.2C263.258.2C260.2E262.4K264.*This topic is dealt with in an Appendix to the

achievement test 7: chapters 14-15 name __________________________ accounting, 5e instructor _______________________ section # _______ date _________ part total points 30 20 22 28 100 score part i — multiple choice (30 points) instructions: designate the best answer for each

Reporting and Analyzing Receivables198.8-41The sale of receivables by a businessa. 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 is owned by a captive finance company.d. can be a quick way to generate cash for

Reporting and Analyzing Receivables198.8-41The sale of receivables by a businessa. 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 is owned by a captive finance company.d. can be a quick way to generate cash for

7. describe the principles of sound accounts receivable management. to properly manage receivables, management must (a) determine to whom to extend credit, (b) establish a payment period, (c) monitor collections, (d)

Reporting and Analyzing Receivables110.8-21Using the percentage-of-receivables method for recording bad debt expense, estimateduncollectible accounts are $45,000. If the balance of the Allowance for Doubtful Accountsis $11,000 debit before adjustment what is the amount of bad debt expense for thatperiod?a. $45,000b. $11,000c. $56,000d. $34,000Ans: C, LO: 3, Bloom: AP, Difficulty: Medium,

7. describe the principles of sound accounts receivable management. to properly manage receivables, management must (a) determine to whom to extend credit, (b) establish a payment period, (c) monitor collections, (d)

8-60Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionSolution 233(Cont.)(c) Allowance for Doubtful Accounts ..................................................Accounts Receivable—A. Myers ........................................Accounts ReceivableLess: Allowance for Doubtful AccountsCash Realizable ValueBefore Write-off$145,0005,000$140,0001,0001,000After Write-off$144,0004,000$140,000Ex. 234Hachey Company has accounts receivable of $95,100 at March 31, 2014. An analysis of theaccounts shows these amounts.Balance, March 3120142013$65,000$75,00012,6008,00010,1002,4007,4001,100$95,100$86,500Month of

Reporting and Analyzing Receivables110.8-21Using the percentage-of-receivables method for recording bad debt expense, estimateduncollectible accounts are $45,000. If the balance of the Allowance for Doubtful Accountsis $11,000 debit before adjustment what is the amount of bad debt expense for thatperiod?a. $45,000b. $11,000c. $56,000d. $34,000Ans: C, LO: 3, Bloom: AP, Difficulty: Medium,

achievement test 8: chapters 16-17 name __________________________ accounting, 5e instructor _______________________ section # _______ date _________ part total points 30 10 25 20 15 100 score part i — multiple choice (30 points) instructions: designate the best answer for

8-60Test Bank for Accounting: Tools for Business Decision Making, Fifth EditionSolution 233(Cont.)(c) Allowance for Doubtful Accounts ..................................................Accounts Receivable—A. Myers ........................................Accounts ReceivableLess: Allowance for Doubtful AccountsCash Realizable ValueBefore Write-off$145,0005,000$140,0001,0001,000After Write-off$144,0004,000$140,000Ex. 234Hachey Company has accounts receivable of $95,100 at March 31, 2014. An analysis of theaccounts shows these amounts.Balance, March 3120142013$65,000$75,00012,6008,00010,1002,4007,4001,100$95,100$86,500Month of

Reporting and Analyzing Long-Lived AssetsEx. 2439-61(Cont.)InstructionsJournalize all entries required as a result of the above transactions. Tinker Company uses thestraight-line method of depreciation and has recorded depreciation through December 31, 2014.Ans: N/A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 15, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPAPC:

5. explain how to account for the disposal of plant assets. the procedure for accounting for the disposal of a plant asset through sale or retirement is: (a) eliminate the book value of the plant asset at the date of disposal. (b)

Reporting and Analyzing Long-Lived Assets102.9-21Which 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, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None,IMA: Business Economics103.Management should select

Reporting and Analyzing Long-Lived Assets102.9-21Which 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, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None,IMA: Business Economics103.Management should select

Reporting and Analyzing Long-Lived AssetsEx. 2439-61(Cont.)InstructionsJournalize all entries required as a result of the above transactions. Tinker Company uses thestraight-line method of depreciation and has recorded depreciation through December 31, 2014.Ans: N/A, LO: 5, Bloom: AP, Difficulty: Medium, Min: 15, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPAPC:

3. t part iii — scarce resource allocation (12 points) (a) product x21 r45 contribution margin per unit $25 $40 machine hours required ÷ 2.5 ÷ 4.2 contribution margin per unit of limited resource $10 $9.52

Reporting and Analyzing Long-Lived Assets194.9-41Goodwilla. 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 the purchase of an entire business occurs.Ans: D, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB:

1. the following are some of the ethical issues: a. whether prs should continue to obtain its information by deception b. whether prs makes a practice of pirating software c. whether the attempt to hide the losses from

1. the following are some of the ethical issues: a. whether prs should continue to obtain its information by deception b. whether prs makes a practice of pirating software c. whether the attempt to hide the losses from

Reporting and Analyzing Long-Lived Assets194.9-41Goodwilla. 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 the purchase of an entire business occurs.Ans: D, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB: