Archives: Quiz
Accounting Chapter 18 Explanation Cost Goods Manufactured Beginning Work Process
141 Explanation: A) Cost of Goods Manufactured = Beginning Work In Process Inventory + Direct Materials Costs + Direct Labor Costs + Overhead Costs – Ending Work in Process Inventory Cost of Goods Manufactured = $60,000 + $350,000 + $216,000 […]
Accounting Chapter 18 Explanation Beginning Finished Goods Cost Goods Manufactured
121 Explanation: A) Beginning Finished Goods + Cost of Goods Manufactured – Ending Finished Goods = Cost of Goods Sold $80,000 + Cost of Goods Manufactured – $67,000 = $540,000 Cost of Goods Manufactured + $13,000 = $540,000; Cost of […]
Accounting Chapter 18 Explanation Raw Materials Inventory Beginning 1000 Purchases
101 Explanation: A) Raw Materials Inventory Beginning RM 10,00 0 Purchases 90,00 0 Materials Used 88,00 0 Ending RM 12,00 0 Work in Process Inventory Beginning WIP 40,000 Direct materials 88,000 Direct labor 130,00 0 Factory Overhead 60,000 Total Manufacturing […]
Accounting Chapter 18 Total Manufacturing Costs Raw Materials Used Direct
81 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. C) Cost of Goods Manufactured = Costs Added + Beginning Work in Process – Ending Goods in Process Cost of Goods […]
Accounting Chapter 18 Craigmont Company’s direct materials costs are $3,000,000
61 Answer: C Explanation: A) Prime Costs = Direct Materials + Direct Labor; $3,000,000 + $7,000,000 = $10,000,000. B) Prime Costs = Direct Materials + Direct Labor; $3,000,000 + $7,000,000 = $10,000,000. C) Prime Costs = Direct Materials + Direct […]
Accounting Chapter 18 For product costs associated with a particular product
41 Answer: E Explanation: A) B) C) D) E) Diff: 1 Topic: Comparing Product and Period Costs Learning Objective: 18–C3 Define product and period costs and explain how they impact financial statements. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Resource […]
Accounting Chapter 18 Last Year Wesson Company Sold 10000
21 Answer: A Explanation: Diff: 1 Topic: Trends in Managerial Accounting Learning Objective: 18–C6 Describe trends in managerial accounting. Bloom’s: Remember AACSB: Analytical Thinking AICPA: FN Decision Making; BB: Industry Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution […]
Accounting Chapter 18 Managerial accounting is an activity that helps
1 Answer: A Explanation: Diff: 1 Topic: Comparing Product and Period Costs Learning Objective: 18–C1 Explain the purpose and nature of, and the role of ethics in, managerial accounting. Bloom’s: Remember AACSB: Communication AICPA: BB: Industry; FN: Decision Making Copyright […]
Accounting Chapter 17 Financial information for Sigma Company is presented
117 Answer: (a) Accounts receivable turnover = $312,000/(($27,000 + $24,000/)2) 12.2 times (b) Inventory turnover = $165,600/(($25,000 + $20,000)/2) = 7.4 times (c) Days’ sales uncollected = ($27,000/$312,000) * 365 = 31.6 days (d) Days’ sales in inventory = ($25,000/$165,600) […]
Accounting Chapter 17 The comparative balance sheet for Silverlight Co.
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 193) Express the following income statement information in common-size percentages and in trend percentages using 2016 as the base year. Common-Size Trend […]
Accounting Chapter 17 Income Before Interest Expense And Income Taxes interest
81 Answer: B Explanation: A) $306,450 – $107,800 = $198,650 B) $306,450 – $107,800 = $198,650 C) $306,450 – $107,800 = $198,650 D) $306,450 – $107,800 = $198,650 E) $306,450 – $107,800 = $198,650 Diff: 2 Topic: Ratio Analysis Learning […]
Accounting Chapter 17 A corporation reports the following year-end balance sheet data
61 Diff: 3 Topic: Ratio Analysis Learning Objective: 17–P3 Define and apply ratio analysis. Bloom’s: Apply AACSB: Analytical Thinking AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent […]
Accounting Chapter 17 To compute trend percentages the analyst should
41 Answer: D Explanation: A) Year 2: $450,000/$400,000 * 100 = 112.5% Year 3: $500,000/$400,000 * 100 = 125% B) Year 2: $450,000/$400,000 * 100 = 112.5% Year 3: $500,000/$400,000 * 100 = 125% C) Year 2: $450,000/$400,000 * 100 […]
Accounting Chapter 17 Working capital is computed as current liabilities minus current
21 Answer: A Explanation: Diff: 1 Topic: Ratio Analysis Learning Objective: 17–P3 Define and apply ratio analysis. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior […]
Accounting Chapter 17 Financial statement analysis applies analytical tools
1 Answer: B Explanation: Diff: 1 Topic: Purpose of Analysis Learning Objective: 17–C1 Explain the purpose and identify the building blocks of analysis. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No […]
Accounting Chapter 16 The following transactions and events occurred during the year
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 221) A corporation reported average total assets in Year 1 of $397,350 and $440,800 in Year 2. Its net operating cash flow […]
Accounting Chapter 16 Examples are production and purchase of merchandise
121 Answer: Operating activities involve the day-to-day business activities that generate operating income. Examples are production and purchase of merchandise, the sale of goods to customers, and the expenditures to administer the business. Investing activities generally include those transactions that […]
Accounting Chapter 16 Explanation Equipment Accumulated Depreciation Equipment
101 Equipment Accumulated Depreciation – Equipment 12/31/X1 750,000 500,000 Deprec. 40,000 Sale 240,000 212,000 12/31/X2 510,000 328,000 Equipment $240,000 Accumulated Depreciation – Equipment (212,000) Book Value of Equipment Sold $28,000 Loss on sale (10,000) Cash received from the sale $18,000 […]
Accounting Chapter 16 The accountant for Crusoe Company is preparing the company’s
81 Answer: D Explanation: A) Beginning balance $126,000 Net income for the year 92,000 Cash dividends declared (46,000) Ending balance $172,000 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Diff: […]
Accounting Chapter 16 Zero This Operating Activity d Zero This Financing
61 Diff: 3 Topic: Direct Method of Reporting Operating Cash Flows Learning Objective: 16–P5 Appendix;16-B Compute cash flows from operating activities using the direct method. Bloom’s: Apply AACSB: Analytical Thinking AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All […]
Accounting Chapter 16 Direct Method Reporting Operating Cash Flows learning Objective
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. (c) Interest payable balances: Beginning of year ……………………… $ 7,500 End of year ……………………………. 9,200 Interest expense ………………………… 35,000 Cash paid for […]
Accounting Chapter 16 Investing activities include receiving cash dividends
21 Answer: B Explanation: Diff: 1 Topic: Classification of Cash Flows Learning Objective: 16–C1 Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Resource Management; […]
Accounting Chapter 16 Internal users of the statement of cash flows often
1 Answer: B Explanation: Diff: 1 Topic: Classification of Cash Flows Learning Objective: 16–C1 Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN […]
Accounting Chapter 15 October 11 Hamburg Declared And Paid cash Dividends
100 Dec 13 Cash………………………………………… 55,275 Loss on Sale of Long–Term Investments…. 19,112 Long–Term Investments (AFS)………. 74,387 Answer: Diff: 3 Topic: Available-for-Sale Securities Learning Objective: 15–P3 Bloom’s: Apply AACSB: Analytic AICPA: BB: Industry; FN: Measurement Copyright © McGraw-Hill Education.All rights reserved. […]
Accounting Chapter 15 When Selling Company Makes Credit Sale Foreign
81 Answer: D Explanation: A) Total cost of shares currently held = $200,100 * ½ = $100,055 Total Fair Value of shares held = 3,500 * $29.50 = 103,250 Unrealized Gain—Equity = $3,195 B) Total cost of shares currently held […]
Accounting Chapter 15 February 15 Jewel Company Buys 7000
61 Purchase price of investment: $60,500 Dividends received: Year 1 ($0.85 * 5,000) (4,250 Year 2 ($0.85 * 5,000) (4,250 Year 1 Income (20% * $72,000) 14,400 Year 2 Income (20% * $67,000) 13,400 Book Value of Investment at 1/12/Year […]
Accounting Chapter 15 Carpark Services began operations in 20X1 and maintains
41 Answer: C Explanation: A) B) C) D) E) Diff: 2 Topic: Components of Return on Total Assets Learning Objective: 15–A1 Compute and analyze the components of return on total assets. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN […]
Accounting Chapter 15 Because The Bond Investment Matures Less Than
21 Answer: D Explanation: A) B) C) D) E) Diff: 1 Topic: Basics of Investments Learning Objective: 15–C1 Distinguish between debt and equity securities and between short-term and long-term investments. Bloom’s: Remember AACSB: Analytical Thinking AICPA: FN Measurement; BB Industry […]
Accounting Chapter 15 Long-term investments are usually held as an investment
1 Answer: A Explanation: Diff: 1 Topic: Basics of Investments Learning Objective: 15–C1 Distinguish between debt and equity securities and between short-term and long-term investments. Bloom’s: Remember AACSB: Communication AICPA: BB Decision Making; FN Measurement Copyright © McGraw-Hill Education.All rights […]
Accounting Chapter 14 Prepare the journal entry to record the retirement
113 Answer: (1) 6/30 Cash payment: $2,000,000 * 10% * ½ year = $100,000.00 Interest expense: $2,162,290 * 8% * ½ year = $86,491.60 Premium amortized: $100,000 — $86,491.60 = $13,508.40 Unamortized premium: ($2,162,290 — $2,000,000) — $13,508.40 = $148,781.60 […]
Accounting Chapter 14 the Rodrigues Corporation leased some equipment on
101 (a) 1/1 Leased Asset–Truck 75,000 Lease Liability 75,000 (b) 12/31 Interest Expense 4,500 Lease Liability 10,752 Cash 15,252 Calculation: Interest expense = $75,000 * .06 = $4,500 (c) 12/31 Depreciation Expense–Truck 12,500 Accumulated Depreciation–Truck 12,500 Calculation: $75,000/6 years = […]
Accounting Chapter 14 The Ratio Total Liabilities Total Stockholders Equity10
81 Answer: D Explanation: A) Discount = $400,000 – $383,793 = $16,207 The issued bond is always recorded at par (face) value in the Bonds Payable account, with the difference between par value and issue price recorded as a discount […]
Accounting Chapter 14 A company has bonds outstanding with a par value of $100,000
61 Answer: D Explanation: A) B) C) D) E) Diff: 1 Topic: Bond Retirement Learning Objective: 14–P4 Record the retirement of bonds. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction […]
Accounting Chapter 14 Debit Bond Interest Expense 28000 Credit Cash
41 Answer: B Explanation: A) Current Situation: Total Assets = Total Liabilities + Stockholders’ Equity 42,000,000 = 16,000,000 + 26,000,000 Debt-to-equity ratio = 16/26 or .62. If debt is repaid: Total Assets = Total Liabilities + Stockholders’ Equity 39,000,000 = […]
Accounting Chapter 14 Interest is payable each June 30 and December 31
21 Answer: A Explanation: Diff: 1 Topic: Bond Pricing Learning Objective: 14–P1 Prepare entries to record bond issuance and interest expense. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]
Accounting Chapter 14 This Implies That An annuity Six 2000 Payments
1 Answer: A Explanation: Diff: 1 Topic: Bond Financing Learning Objective: 14–A1 Compare bond financing with stock financing. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior […]
Accounting Chapter 13 Purchased 10000 Shares Treasury Stock For 18
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 219) On June 30, a company declared a cash dividend of $0.35 per common share to the shareholders of record on July […]
Accounting Chapter 13 Given the following information about a corporation’s
101 Answer: Diff: 2 (1) This is an error that should be reported as a prior period adjustment. Accordingly, it should be reported in the statement of retained earnings, net of taxes, as a reduction from the beginning retained earnings […]
Accounting Chapter 13 West Company declared a $0.50 per share
81 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. B) Paid-in Capital, Treasury Stock: May 1 $ 0 July 1: $2/share × 50 shares 100 August 1: $-1/share × 50 […]
Accounting Chapter 13 A corporation with $10 par common stock issues a small
61 Answer: A Explanation: A) B) C) D) E) Diff: 2 Topic: Dividends Learning Objective: 13–P2 Record transactions involving cash dividends, stock dividends, and stock splits. Bloom’s: Apply AACSB: Analytical Thinking AICPA: FN Measurement; BB Industry Copyright © McGraw-Hill Education.All […]
Accounting Chapter 13 Common common shares Outstanding book Value Per
41 Answer: B Explanation: A) Earnings per Share = (Net Income – Preferred Dividends)/Weighted-Average Common Shares Outstanding Earnings per Share = ($132,000 – $27,000)/80,000 = $1.31 B) Earnings per Share = (Net Income – Preferred Dividends)/Weighted-Average Common Shares Outstanding Earnings […]
Accounting Chapter 13 The Market Value The Stock The Date
21 Answer: B Explanation: Diff: 2 Topic: Dividends Learning Objective: 13–P2 Record transactions involving cash dividends, stock dividends, and stock splits. Bloom’s: Understand AACSB: Analytical Thinking AICPA: FN Measurement; BB Resource Management Copyright © McGraw-Hill Education.All rights reserved. No reproduction […]
Accounting Chapter 13 The Company Had 9000 Weighted Average Common shares
1 Answer: A Explanation: Diff: 2 Topic: Characteristics of Corporations Learning Objective: 13–C1 Identify characteristics of corporations and their organization. Bloom’s: Understand AACSB: Communication AICPA: BB Legal; FN Reporting Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without […]
Accounting Chapter 12 Spears Retirement Prepare Journal Entries Record Spears
97 Answer: Parks, Capital 62,500 Tambling, Capital 62,500 Diff: 2 Topic: Admission and Withdrawal of Partners Learning Objective: 12–P3 Bloom’s: Understand AACSB: Analytic AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the […]
Accounting Chapter 12 Allocate Any Gains Losses From liquidation The Partners
81 Answer: A Explanation: A) Paul’s capital balance = ($120,000 + $80,000 + $100,000 + $160,000) * 20% = $92,000. Total bonus = ($160,000 – $92,000) = $68,000. Caitlin’s capital balance =$120,000+ ($68,000 * 30%) = $140,400. B) Paul’s capital […]
Accounting Chapter 12 Barbers Ending Equity a 320000b 362500c 195000d 445000e
61 Answer: A Explanation: A) Lee’s Share of Income = Partnership Income * Ratio of Capital Investments Lee’s Share of Income = $150,000 * [$270,000/($180,000 + $150,000 + $270,000)] Lee’s Share of Income = $150,000 * ($270,000/$600,000) = $67,500 Copyright […]
Accounting Chapter 12 The Partnerships Capital balances Are Follows Wright 33000
41 Answer: C Explanation: A) Nelson’s share = $50,000/($100,000 + $50,000 + 50,000) = 25.0% Nelson’s share of loss = $110,000 * 25.0% = $27,500 If the partnership agreement does not specifically address how losses are to be allocated between […]
Accounting Chapter 12 Singers Capital Account a 75000b 40000c 25000d 20000e
21 Answer: D Explanation: A) Smit’s Ending Equity = Beginning Equity + Share of Income – Distributions Smit’s Ending Equity = $22,000 + $8,500 – $6,000 = $24,500 Partner Return on Equity = Partners’ Income/Average Partnership Equity Partner Return on […]
Accounting Chapter 12 The end of a partnership is referred to as its dissolution
1 Answer: A Explanation: Diff: 1 Topic: Partnership Form of Organization Learning Objective: 12–C1 Identify characteristics of partnerships and similar organizations. Bloom’s: Remember AACSB: Communication AICPA: BB Legal; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]
Accounting Chapter 11 Santa Barbara Express has 4 sales employees
101 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 183) Santa Barbara Express has 4 sales employees, each of whom earns $5,000 per month and is paid on the last […]