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Chapter 1 Businesses Use Accounting Systems Analyze Transactions Handle
A. A system for providing quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. B. An entity without a profit objective, oriented toward providing services efficiently and effectively. C. The […]
Chapter 10 Instructions Use The Present Value And Future
Chapter 10—Financing: Long-Term Liabilities Key 1. Instructions: Use the present value and future value tables included in Appendix 8 and on the textbook companion website. Which of the following statements is FALSE? 2. Instructions: Use the present value and future […]
Chapter 10 when interest expense is calculated using the effective-interest
67. Instructions: Use the present value and future value tables included in Appendix 8 and on the textbook companion website. When bonds are first issued, the liability is entered in the Bonds Payable account at the bond’s 68. Instructions: Use […]
Chapter 11 Which Form Financing Requires Repayment Regardless Whether
Chapter 11—Financing: Equity Key 1. Which form of financing allows the source of the funds to share in the wealth if the company who received the financing does well? 2. Which form of financing requires repayment, regardless of whether the […]
Chapter 11 which of the following is not a component of comprehensive income
62. Exhibit 11-1 Pelletier Corporation has the following stock outstanding: Preferred Stock (6 percent, $10 par, 45,000 shares authorized, 10,000 shares issued and outstanding) $100,000 Common Stock ($7 par, 250,000 shares authorized, 120,000 shares issued and outstanding) 840,000 Refer to […]
Chapter 12 which financial data for two or more companies are combined
62. On January 1, 2012, Newton Corporation purchased $200,000 of 10-year, 10 percent bonds for $227,184 to yield 8 percent annually. The bonds pay interest on January 1, and July 1 of each year. If Tomas uses the effective interest […]
Chapter 12 Which The Following Not Typically Reason Why
Chapter 12—Investments: Debt and Equity Securities Key 1. Which of the following is NOT typically a reason why one company would invest in another company? 2. Which of the following is NOT typically a reason why one company would invest […]
Chapter 13 cash outflow is reported as a financing activity
70. Exhibit 13-4 Selected balance sheet and income statement data for Fowler Inc. are presented below. The company uses the direct method in preparing its statement of cash flows. Partial Balance Sheet Beginning End of Year of Year Accounts Receivable […]
Chapter 13 The Statement Cash Flows Replaces The Balance
Chapter 13—Statement of Cash Flows Key 1. The statement of cash flows replaces the 2. The statement of cash flows A. Is a required statement only for those companies using cash-basis accounting B. Provides a connecting link between two consecutive […]
Chapter 14 the ratio that reflects the mix of sources of financing
60. The ratio that reflects the mix of sources of financing for a company is the 61. When analyzing a company’s debt-to-equity ratio, if the ratio has a value that is greater then one, then the company has A. Less […]
Chapter 14 Which The Following Statements Best Describes Financial
Chapter 14—Analyzing Financial Statements Key 1. Which of the following statements best describes financial statement analysis? 2. Which of the following is one of the purposes of financial statement analysis? A. Diagnosis B. Prognosis C. Both diagnosis and prognosis D. […]
Chapter 15 Good Management Accounting Motivated By Government Regulators
Chapter 15—Management Accounting and Cost Concepts Key 1. Good management accounting is motivated by: 2. Management accounting is established by: A. Individual companies B. FASB C. SEC D. GAAP 3. Which of the following principles are the LEAST uniform and […]
Chapter 15 The Zigzag Company Manufactures Zippers For
65. The Zig-Zag Company manufactures zippers for many clothing manufacturers. Costs for the year were direct materials, $5,000; indirect materials, $1,600; direct labor, $12,000; and indirect labor, $4,000. Additional expenses for the year were factory utilities $3,500; depreciation of factory […]
Chapter 16 Most Product Distribution Consumers Follows Which
90. Most product distribution to consumers follows which of the following channels? 91. Raw Materials Inventory is only found in: A. Merchandising organizations B. Service organizations C. Wholesale organizations D. Manufacturing organizations 92. Ideally, inventory costs for a merchant should […]
Chapter 16 Prepare The Journal Entries For The
126. Prepare the journal entries for the following events. (Assume that purchases and expenses are credited to cash.) a. Raw materials purchased $30,000 b. Direct materials used 25,000 c. Indirect materials used 3,500 d. Wages payable-direct 30,000 e. Wages payable-indirect […]
Chapter 16 Which The Following Would Not Properly Classified
Chapter 16—Cost Flows and Business Organizations Key 1. Which of the following would NOT properly be classified as manufacturing overhead? 2. Which of the following costs would NOT be classified as a product cost? A. Cost of raw materials B. […]
Chapter 17 Assume That Direct Labor And Direct Materials
Chapter 17—Activity-Based Costing Key 1. Assume that direct labor and direct materials are the major cost components of a product and that the small amount of overhead cost can easily be associated with products using a simple overhead allocation basis […]
Chapter 17 write the letter of the cost driver that best matches the overhead
The following information relates to each size of bird cage and next year’s anticipated manufacturing operations: Large Medium Small Units to be produced 350 400 600 Orders to be shipped 180 200 250 Number of parts per unit 8 6 […]
Chapter 18 Refer Exhibit 185 Given The Information Above
Refer to Exhibit 18-5. Given the information above, total wages and salaries expense for January would be: 80. Exhibit 18-5 Dr. Gatten began practicing dentistry on January 1, 2011. During January she served 250 patients who had their teeth examined […]
Chapter 18 The Overall Purpose Budget To Develop Plan
Chapter 18—Budgeting and Control Key 1. The overall purpose of a budget is to: 2. In a personal budget, the amount of income left after covering the withdrawals and fixed expenditures is referred to as: A. Necessary expenditures B. Disposable […]
Chapter 19 if the actual amount spent for fixed manufacturing
84. Exhibit 19-5 Ridgeline Corporation has the following operating data for the year: Revenue $1,125,000 Expenses $ 850,000 Average total assets $ 750,000 Average total liabilities $ 475,000 Refer to Exhibit 19-5. Given the above data for Ridgeline Company, what […]
Chapter 19 Which The Following Not Type Responsibility Center
Chapter 19—Controlling Cost and Profit Key 1. Which of the following is NOT a type of responsibility center? 2. Responsibility accounting is the concept that: A. A firm is responsible for reporting to the public all activities that have a […]
Chapter 2 The Financial Statement That Reports Resources Owned
Chapter 2—Financial Statements: An Overview Key 1. The financial statement that reports resources owned, the obligations to transfer resources to other organizations, and the claims by the entity’s owners is known as the 2. Another name for the balance sheet […]
Chapter 2 Which The Following Activities Would Not
77. Which of the following activities would NOT be classified as an investing activity? 78. Which of the following activities would be classified as a financing activity? A. Selling goods B. Payment of wages C. Repayment of a loan D. […]
Chapter 20 Garner Industries Increased The Size Inventory
56. Garner Industries increased the size of inventory order quantities above the quantity determined by EOQ. What is the impact on total annual carrying costs? 57. Exhibit 20-4 The Hanover Catalog Company has the following information available concerning one of […]
Chapter 20 The Formula For Typical Income Statement Is
Chapter 20—Inventory Management and Variable and Absorption Costing Key 1. The formula for a typical income statement is: 2. What type of firm could have work-in-process inventory? A. Service B. Manufacturing C. Merchandising D. Both service and manufacturing 3. What […]
Chapter 21 Activity Level Increases Within The Relevant
90. Exhibit 21-5 The following is a partial income statement for Duncan Corporation for 2011: Duncan Corporation Projected Income Statement For the Year Ended December 31, 2011 Sales revenue (750 units at $20) $15,000 Manufacturing cost of goods sold: Direct […]
Chapter 21 one method that a multi-product firm can employ
121. Exhibit 21-7 Use the cost-volume-profit graph below to answer the following question(s). Refer to Exhibit 21-7. On the cost-volume-profit graph, the area between point G, the origin of the graph, and the point at which Line B crosses the […]
Chapter 21 Which The Following Items Not Key Factor
Chapter 21—Cost Behavior and Decisions Using C-V-P Analysis Key 1. Which of the following items is NOT a key factor involved in cost-volume-profit (C-V-P) analysis? 2. C-V-P analysis is useful to managers in: A. Planning B. Controlling decisions C. Evaluating […]
Chapter 22 Charcore Mixes Together Wood Chips And
65. Granger Company makes portable DVD players. In its inventory, Granger found 200 DVD players that had become obsolete. Each DVD player has a cost of $100. Granger can upgrade these DVD players for $15 each after which they can […]
Chapter 22 Future Costs That Change Result Decision Are
Chapter 22—Relevant Information and Decisions Key 1. Future costs that change as a result of a decision are: 2. Costs that have already been incurred and CANNOT be avoided are: A. Sunk costs B. Variable costs C. Differential costs D. […]
Chapter 23 All The Following Define Capital Except Material
Chapter 23—Capital Investment Decisions Key 1. All of the following define capital EXCEPT: 2. All of the following are characteristics of the capital investment decisions that are critical to long-run profitability EXCEPT: A. They affect earnings over a long period […]
Chapter 23 Stanley Company Invested Asset With Useful
61. Stanley Company invested in an asset with a useful life of 4 years and no salvage value. The company’s expected rate of return is 12%. The cash inflows and present value factors for 4 years are as follows: Present […]
Chapter 24 Which The Following Not One The Components
A. Operating profit B. Average total assets C. Weighted average cost of capital D. Minimum required rate of return to cover the cost of capital is: A. Operating profit B. Economic value added C. Return on investment D. Return on […]
Chapter 3 when jim was preparing the trial balance, he accidentally
84. Golf Company paid a $5,000 cash dividend to its stockholders. The transaction would be posted as 85. Gorbac Corporation issued stock to John Gorbac for $7,000 cash. This transaction would be posted to the ledger accounts of Gorbac Corporation […]
Chapter 3 Which The Following Not Reason That Business
Chapter 3—The Accounting Cycle: The Mechanics of Accounting Key 1. Which of the following is NOT a reason that business documents are used in a business? 2. Business documents are used as records of transactions and as the basis for […]
Chapter 4 under accrual-basis accounting, revenue is recognized
Chapter 4—Completing the Accounting Cycle Key 1. Under accrual-basis accounting, revenues are always recognized when 2. The idea that all expenses incurred in generating revenues should be recognized in the same period as those revenues is called the A. Time […]
Chapter 4 which of the following is the correct sequence of the
90. Exhibit 4-2 Short Company has the following income statement for 2012: Revenue s: Sales revenue $630,000 Interest revenue 21,000 $651,000 Expense s: Interest expense $ 10,500 Rent expense 126,000 Utilities expense 42,000 Salaries expense 483,000 661,500 Net Loss $ […]
Chapter 5 The GAAP Oval Best Represents The
73. Excessive earnings management typically begins as a result of 74. The GAAP Oval best represents A. The fact that only one true earnings number exists. B. The flexibility managers have within GAAP to report one earnings number from among […]
Chapter 5 Which The Following Not Reason For Problems
Chapter 5—Internal Controls: Ensuring the Integrity of Financial Information Key 1. Which of the following is NOT a reason for problems occurring in the financial statements? 2. Which of the following statements is true about errors in the financial statements […]
Chapter 6 estimated warranty costs associated with sales should
73. Exhibit 6-1 Dana Company’s December 31, 2012, financial statements showed the following: Sales revenue $ 750,000 Average receivables 125,000 Cost of goods sold 555,000 Average inventory 215,000 Net income 105,000 Average total assets 1,220,000 Refer to Exhibit 6-1. Given […]
Chapter 6 The Major Activities Business Include All But
Chapter 6—Receivables: Selling a Product or a Service Key 1. The major activities of a business include all BUT which of the following? 2. Which type of the major activities of a business are best described as those events that […]
Chapter 7 a physical inventory revealed that the ending inventory
On December 31, a physical inventory revealed that the ending inventory was only $210,000. Gordon’s gross profit on net sales has remained constant at 30 percent in recent years. Gordon suspects that some inventory may have been pilfered by one […]
Chapter 7 Items That Are Either Manufactured Purchased For
Chapter 7—Inventory and the Cost of Sales Key 1. Items that are either manufactured or purchased for resale in the normal course of business are called 2. Which of the following is an inventory account for a retailer? A. Raw […]
Chapter 7 which of the following factors are used in calculating
Refer to Exhibit 7-6. If Martin Inc. uses a LIFO periodic inventory system, the ending inventory of supply number 47519 at October 31 is reported as 85. Exhibit 7-6 Martin Inc. is a wholesaler of office supplies. The activity for […]
Chapter 8 Properly Recognize The Expense Associated With Compensated
Chapter 8—Completing the Operating Cycle Key 1. To properly recognize the expense associated with compensated absences, a company should 2. Which of the following is NOT true regarding taxes deducted from an employee’s earnings? A. These items are expenses to […]
Chapter 8 which type of income shows how much a company earns
60. On December 31, the trial balance of Cubico Company included the following accounts with debit balances: Prepaid Advertising $1,500 Advertising Expense 5,400 If it is determined that the cost of advertising applicable to future periods is $3,300, the correct […]
Chapter 9 four widely used methods of allocating the cost of equipment
82. On March 3, 2012, Binford Tools acquired the following assets from Mace Hardware for $360,000: Book Fair Market Value Value Accounts Receivable $ 58,000 $ 33,000 Inventory 92,000 76,000 Equipment 139,000 182,000 Patent 13,000 8,000 How much goodwill should […]
Chapter 9 Which The Following Not Current Asset Marketable
Chapter 9—Investments: Property, Plant, and Equipment and Intangible Assets Key 1. Which of the following is NOT a current asset? 2. The caption “property, plant, and equipment” generally includes A. Assets purchased for sale B. Depreciable assets C. Current assets […]