1) A company has total fixed costs of $360,000. Its product sells for $40 per unit and
variable costs amount to $25 per unit. What is the break-even point in dollar sales?
2) An employee is __________ when a company purchases an insurance policy against
losses from theft by that employee.
3) Outdoors Unlimited uses special journals to record its daily transactions. They use
the perpetual inventory system. Shown below is its cash receipts journal and selected
ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.
4) Arena Sports receives $31,680,000 cash in advance ticket sales for 11 home games.
Record the advance ticket sales on March 31. Record the revenue earned for the first
home game played on August 17.
5) A company borrows money from the bank by promising to make 6 annual year-end
payments of $25,000 each. How much is the company able to borrow if the interest rate
is 9%?
6) Prepare journal entries to record the following merchandising transactions of Dean
Company, which applies the perpetual inventory system. Dean Company offers all of its
credit customers credit terms of 2/10, n/30.
7) Using the information given below, prepare a balance sheet for Martin Sky Taxi
Services from the adjusted trial balance. Helena Martin did not make any additional
investments in the company during the year.
8) _____________________ are additional costs of plant assets that provide benefits
extending beyond the current period; they increase or improve the type or amount of
service an asset provides.
9) The ________________________ aids continuous improvement by augmenting
financial measures with information on the drivers or indicators of future financial
performance along four dimensions: (1) financial, (2) customer, (3) internal business
processes, and (4) learning and growth.
10) Bean Company uses a job order cost system and last period incurred $70,000 of
overhead and $100,000 of direct labor. Bean estimates that its overhead next period will
be $65,000. The company also expects to incur $100,000 of direct labor. If Bean bases
its overhead applied on direct labor cost, what should be the overhead allocation rate for
the next period?