(Xoa dong nay de nhap cau hoi)
Answer:
Manufacturers use labor, plant, and equipment to convert direct materials into finished
products.
Answer:
At the end of the fiscal period, prepaid expenses are reported on the income statement
as expenses.
Answer:
Prime costs consist of factory overhead and direct labor.
Answer:
A centralized business organization is one in which all major planning and operating
decisions are made by top management.
Answer:
Only callable bonds can be purchased by the issuing corporation before maturity.
Answer:
When a company is showing a net loss, it is always best to discontinue the segment in
order not to continue with losses.
Answer:
The responsibility for coordinating the preparation of a master budget should be
assigned to the CEO of a firm.
Answer:
Each partner has a separate capital and withdrawal account.
Answer:
The market rate of interest is affected by a variety of factors, including investors’
assessment of current economic conditions.
Answer:
If not enough partnership cash or other assets are available to pay the withdrawing
partner, a liability may be created for the amount owed the withdrawing partner.
Answer:
The capital expenditures budget summarizes future plans for acquisition of fixed assets.
Answer:
A disadvantage of partnerships is the mutual agency of all partners.
Answer:
A formal written statement of management’s plans for the future, expressed in financial
terms, is called a budget.
Answer:
If yearly insurance premiums are increased, this change in fixed costs will result in an
increase in the break-even point.
Answer:
Land is an example of a plant asset.
Answer:
If bonds of $1,000,000 with unamortized discount of $10,000 are redeemed at 98, the
gain on redemption of bonds is $10,000.
Answer:
The most important output of the accounting cycle is the financial statements.
Answer:
Managerial accounting provides useful information to managers on product costs.
Answer:
Cash dividends are normally paid on shares of treasury stock.
Answer:
As product costs are incurred in the manufacturing process, they are accounted for as
assets and reported on the balance sheet as inventory.
Answer:
An example of an external user of accounting information is the federal government.
Answer:
The capital expenditures budget is part of the planned investing activities of a company.
Answer:
The master budget of a small manufacturer would normally include all necessary
component budgets except the capital expenditures budget.
Answer:
Operating expenses directly traceable to or incurred for the sole benefit of a specific
department and usually subject to the control of the department manager are termed
direct expenses.
Answer:
The methods or procedures used to record and report financial data are called the
accounting system.
Answer:
Cash outflows from financing activities include the payment of cash dividends, the
acquisition of treasury stock, and the repayment of amounts borrowed.
Answer:
The data required for determining the break-even point for a business are the total
estimated fixed costs for a period, stated as a percentage of net sales.
Answer:
It is not necessary for a company to use the same depreciation method for financial
statements and for determining income taxes.
Answer:
Solvency analysis focuses on the ability of a business to pay its current and noncurrent
liabilities.
Answer:
The basic difference between manufacturing and merchandising companies is the
completion level of the products they purchase for resale to customers.
Answer:
A budget procedure that provides for the maintenance at all times of a twelve-month
projection into the future is called continuous budgeting.
Answer:
The cost of production report reports the cost of the goods sold.
Answer:
A voucher system is an example of an internal control procedure over cash payments.
Answer:
The major shortcoming of income from operations as an investment center performance
measure is that it ignores the amount of revenues earned by the center.
Answer:
Posting a transaction twice will cause the trial balance totals to be equal.
Answer:
A notation in the post reference column of the general journal indicates that the amount
has been posted to the ledger.
Answer:
E-commerce provides business opportunities at a higher cost.
Answer:
Methods that ignore present value in capital investment analysis include the net present
value method.
Answer:
Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Clay
Potter, Capital; Clay Potter, Drawing; Professional Fees; and Operating Expenses.
(a) In the T accounts, record the following transactions of Potter Pool Services for June,
2011, identifying each entry by number:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(b) Prepare a trial balance as of June 30, 2011 for Potter Pool Services.
(c) Assuming that supplies expense (which has not been recorded) amounts to $1,500
for June, determine the following:
(1)
(2)
Answer:
The debits to Work in Process–Assembly Department for April, together with data
concerning production, are as follows:
All direct materials are placed in process at the beginning of the process and the
average cost method is used to cost inventories.
The conversion cost per equivalent unit (to the nearest cent) for April is:
A.$2.70
B.$2.53
C.$3.31
D.$5.60
Answer:
Which of the following is not considered a special journal?
A.purchases journal
B.cash receipts journal
C.general journal
D.cash payments journal
Answer:
The following unit data were assembled for the assembly process of the Super Co. for
the month of June. Direct materials are added at the beginning of the process.
Conversion costs are added uniformly over the production process. The company uses
the FIFO process.
The number of equivalent units produced with respect to direct materials costs is:
A.48,000
B.49,000
C.43,000
D.53,000
Answer:
The process by which management allocates available investment funds among
competing investment proposals is called:
A.investment capital
B.investment rationing
C.cost-volume-profit analysis
D.capital rationing
Answer:
The following errors took place in journalizing and posting transactions:
Journalize the entries to correct the errors. Omit the explanations.
Answer:
The Craig-Doran Partnership owns inventory that was purchased for $85,000, has a
current replacement cost of $54,500, and is priced to sell for $98,000. At what amount
should the inventory be recorded in the accounts of the new partnership if Alexis is to
be admitted?
A.$98,000
B.$54,500
C.$85,000
D.$79,167
Answer:
On March 1, a business paid $3,600 for a twelve month liability insurance policy. On
April 1 the same business entered into a two-year rental contract for equipment at a
total cost of $18,000. Determine the following amounts:
(a) insurance expense for the month of March
(b) prepaid insurance as of March 31
(c) equipment rent expense for the month of April
(d) prepaid equipment rental as of April 30
Answer:
Treasury stock should be reported in the financial statements of a corporation as a(n)
A.investment.
B.liability.
C.current asset.
D.deduction from stockholders’s equity.
Answer:
The debt created by a business when it makes a purchase on account is referred to as an
A.account payable
B.account receivable
C.asset
D.expense payable
Answer:
Characteristics of a corporation include
A.shareholders who are mutual agents
B.direct management by the shareholders (owners)
C.its inability to own property
D.shareholders who have limited liability
Answer:
Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an
estimated life of 10 years or 19,000 hours. It is to be depreciated by the straight-line
method. What is the amount of depreciation for the first full year, during which the
equipment was used 2,100 hours?
A.$19,000
B.$21,000
C.$22,000
D.$30,000
Answer:
Inventory shortage is recorded when
A.merchandise is returned by a buyer.
B.merchandise purchased from a seller is incomplete or short.
C.merchandise is returned to a seller.
D.there is a difference between a physical count of inventory and inventory records.
Answer:
If sales are $914,000, variable costs are $498,130, and operating income is $260,000,
what is the contribution margin ratio?
A.52.2%
B.28.4%
C.54.5%
D.45.5%
Answer:
Department E had 4,000 units in Work in Process that were 40% completed at the
beginning of the period at a cost of $12,500. 14,000 units of direct materials were added
during the period at a cost of $28,700. 15,000 units were completed during the period,
and 3,000 units were 75% completed at the end of the period. All materials are added at
the beginning of the process. Direct labor was $32,450 and factory overhead was
$18,710.
The number of equivalent units of production for the period for materials if the average
cost method is used to cost inventories was:
A.15,650
B.18,000
C.17,250
D.17,700
Answer:
Which of the following would not be used in preparing a cash budget for October?
A.Beginning cash balance on October 1.
B.Budgeted salaries expense for October.
C.Estimated depreciation expense for October.
D.Budgeted sales and collections for October.
Answer:
Balance sheet and income statement data indicate the following:
Answer:
Hazard Company is considering the acquisition of a machine that costs $525,000. The
machine is expected to have a useful life of 6 years, a negligible residual value, an
annual cash flow of $150,000, and annual operating income of $87,500. What is the
estimated cash payback period for the machine?
A.3 years
B.4.3 years
C.3.5 years
D.5 years
Answer:
All of the following are typically included in the Management’s Discussion and
Analysis in annual reports except:
A.explanations of any significant changes between the current and prior years’ financial
statements.
B.management’s assessment of liquidity.
C.journal entries.
D.off-balance-sheet arrangements
Answer:
Using the following information, prepare a bank reconciliation for Young Co. for
August 31, 2014:
(a) The bank statement balance is $4,690
(b) The cash account balance is $5,080.
(c) Outstanding checks amounted to $715.
(d) Deposits in transit are $1,020.
(e) The bank service charge is $40.
(f) A check for $72 for supplies was recorded as $27 in the ledger.
Answer:
When a new partner is admitted to a partnership, there should be a(n)
A.increase in the total assets of the partnership.
B.new capital account added to the ledger for the new partner.
C.increase in the total owner’s equity of the partnership.
D.debit amount to the partner’s capital account for the cash received by the current
partner.
Answer:
The term cash includes
A.coins, currency (paper money), checks
B.money orders, and money on deposit that is available for unrestricted withdrawal
C.short-term receivables
D.both a and b
Answer:
The number of days’ sales in receivables
A.is an estimate of the length of time the receivables have been outstanding
B.measures the number of times the receivables turn over eachyear
C.is Net Credit Sales divided by Average Receivables
D.is not meaningful and therefore is not used
Answer:
A sporting goods store purchased $7,000 of ski boots in October. The store had $3,000
of ski boots in inventory at the beginning of October, and expects to have $2,000 of ski
boots in inventory at the end of October to cover part of anticipated November sales.
What is the budgeted cost of goods sold for October?
A.$10,000
B.$5,700
C.$8,000
D.$9,500
Answer:
The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts on
December 31st during the closing process would be:
A.Dec. 31 Fees Earned 750
Rent Revenue 175
Income Summary 925
B.Dec. 31 Income Summary 925
Fees Earned 750
Rent Revenue 175
C.Dec. 31 Revenues 925
Income Summary 925
D.Dec. 31 Income Summary 925
Revenues 925
Answer:
Deferred expenses have
A.not yet been recorded as expenses or paid
B.been recorded as expenses and paid
C.been incurred and paid
D.not yet been recorded as expenses
Answer:
The inventory data for an item for November are:
Using a perpetual system, what is the cost of the merchandise sold for November if the
company uses FIFO?
A.$610
B.$600
C.$590
D.$580
Answer:
The expected average rate of return for a proposed investment of $600,000 in a fixed
asset, with a useful life of four years, straight-line depreciation, no residual value, and
an expected total net income of $240,000 for the 4 years, is:
A.40%
B.20%
C.60%
D.24%
Answer:
Stevens Company started the year with an inventory cost of $145,000. During the
month of January they purchased inventory that cost of $53,000. January sales totaled
$140,000. Estimated gross profit is 35%. The estimated ending inventory as of January
31 is
A.$58,000
B.$91,000
C.$107,000
D.$69,300
Answer:
The charter of a corporation provides for the issuance of 100,000 shares of common
stock. Assume that 30,000 shares were originally issued and 5,000 were subsequently
reacquired. What is the number of shares outstanding?
A.35,000
B.70,000
C.25,000
D.30,000
Answer:
The Austin Land Company sold land for $85,000 in cash. The land was originally
purchased for $65,000. At the time of the sale, $40,000 was still owed to Regions Bank.
After the sale, The Austin Land Company paid off the loan. Explain the effect of the
sale and the payoff of the loan on the accounting equation.
Answer:
The Mountain Springs Water Company has two departments, Purifying and Bottling.
The Bottling Department had 3,000 liters in beginning work in process inventory (30%
complete). During the period 71,000 liters were completed. The ending work in process
was 5,000 liters (70% completed). What are the total equivalent units for direct
materials (using the FIFO method) if materials were added at the beginning of the
process?
Answer:
What is a capital expenditures budget?
Answer:
What is a cash budget? How does management use a cash budget?
Answer:
Describe at least five benefits of budgeting.
Answer:
During the taking of its physical inventory on December 31, 2011, Gentry Supplies
Company incorrectly counted its inventory as $245,000 instead of the correct amount of
$254,000. Indicate the affect of the misstatement on Gentry Supplies Company’s
balance sheet and income statement for the year ended December 31, 2011.
Answer:
List and describe the purpose of the four closing entries.
Answer:
On October 30th Damien Lawson withdraws $3,330 from JumpStart for personal use.
Journalize this event.
Answer:
Company G has a ratio of liabilities to stockholders’ equity of 0.12 and 0.28 for 2010
and 2011, respectively. In contrast, Company M has a ratio of liabilities to stockholders’
equity of 1.13 and 1.29 for the same period.
REQUIRED:
Based on this information, which company’s creditors are more at risk and why? Should
the creditors of either company fear the risk of nonpayment?
Answer:
Travis Company purchased merchandise on account from a supplier for $5,700, terms
2/10, net 30. Travis returned $1,100 of the merchandise and received full credit. Travis
Company paid for the merchandise within the discount period.
Under a perpetual inventory system, record all of the journal entries required for the
above transactions.
Answer:
Explain whether each of the following would usually be used in a computerized
accounting system and why.
1) Special journals
2) Accounts receivable control accounts
3) Electronic invoice form
4) Month-end postings to the general ledger
Answer:
A summary of cash flows for Alex Design Services for the year ended December 31,
2012, is shown below.
Prepare a statement of cash flows for Alex Design Services for the year ended
December 31, 2012.
Answer:
Define solvency and profitability. How are they alike?
Answer:
Journalize the following selected transactions completed during the current fiscal year:
Answer:
The cost per equivalent units of direct materials and conversion in the Bottling
Department of Beverages on Jolt Company is $.47 and $.15, respectively. The
equivalent units to be assigned costs are as follows.
The beginning work in process inventory had a cost of $3,500. Determine the cost of
completed and transferred out production, and the ending work in process inventory.
Answer: