Financial Accounting

1. The accountant at EZ Toys, Inc. is analyzing the production and cost data for

1. The accountant at EZ Toys, Inc. is analyzing the production and cost data for its Trucks Division. For October, the actual results and the master budget data are presented belo…

1. The accounting concept or principle applied when an allowance is provided for

1. The accounting concept or principle applied when an allowance is provided for estimated uncollectible accounts receivable is: A. Consistency. B. Matching revenue and expense. C…

1. The accounting equation is defined as: a. Common Stock + Retained Earnings =

1. The accounting equation is defined as: a. Common Stock + Retained Earnings = Stockholders’ Equity. b. Revenues - Expenses = Net Income. c. Revenues - Expenses - Dividends = Ret…

1. The accounts that represent the resources of the company are called This is t

1. The accounts that represent the resources of the company are called This is the month-end for Certified. Prepare the financial statements in good form at August 31, 2017 Glenda…

1. The allowance method of accounting for uncollectible accounts: a. emphasizes

1. The allowance method of accounting for uncollectible accounts: a. emphasizes the matching of expenses with revenues b. does not match up the sales revenues and bad debt expense…

1. The amount of increase or decrease in revenue that is expected from a particu

1. The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed: a. manufacturing margin b. contribu…

1. The area of accounting that provides external users with information is calle

1. The area of accounting that provides external users with information is called _____. a. managerial accounting b. financial accounting c. tax accounting d. None of these choice…

1. The assembly department had beginning work in process of 18,000 units, ending

1. The assembly department had beginning work in process of 18,000 units, ending work in process of 22,000 units, and units transferred out of 58,000 units. What was the number of…

1. The average gasoline price of one of the major oil companies has been $1.00 p

1. The average gasoline price of one of the major oil companies has been $1.00 per gallon. Because of shortages in production of crude oil, it is believed that there has been a si…

1. The balance of cash reported in the balance sheet this year minus the balance

1. The balance of cash reported in the balance sheet this year minus the balance of cash reported in the balance sheet last year equals A. Net cash flows from operating activities…

1. The balance sheet shows a company’s net income or loss due to earnings activi

1. The balance sheet shows a company’s net income or loss due to earnings activities over a period of time, so cash account on the balance sheet shows the cumulative change over t…

1. The balance sheet shows a company’s net income or loss due to earnings activi

1. The balance sheet shows a company’s net income or loss due to earnings activities over a period of time, so cash account on the balance sheet shows the cumulative change over t…

1. The bank added another company\'s deposit to our account. This would be inclu

1. The bank added another company's deposit to our account. This would be included on the bank reconciliation as a(n). a) addition to the balance per books. b) subtraction from th…

1. The bank service charge for July was $21. 2. The bank collected a note receiv

1. The bank service charge for July was $21. 2. The bank collected a note receivable of $1,666 for Redeker Company on July 15, plus $34 of interest. The bank made a $14 charge for…

1. The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30

1. The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010 After the journals for June had been posted, the cash account had a balance of $4,098.00 Pre…

1. The basic differences between the financial statements of a merchandising bus

1. The basic differences between the financial statements of a merchandising business and a service business include reporting cost of merchandise sold on the income statement and…

1. The beginning balance of plan assets was $500,000, plan contributions were $1

1. The beginning balance of plan assets was $500,000, plan contributions were $100,000, benefits paid to retirees were $150,000, and the ending balance of plan assets was $850,000…

1. The beginning inventory is$100,000 2. Purchases of $300,000 were madeon terms

1.      The beginning inventory is$100,000 2.      Purchases of $300,000 were madeon terms of 2/10, n/30. Eighty percent of the discounts weretaken. 3.      Purchases returns of $…

1. The best measure of a company\'s ability to generate sufficient cash is cash

1. The best measure of a company's ability to generate sufficient cash is cash provided by: a. financing activities b. investing activities c. operating aciviies d. processing act…

1. The best measure of a company\'s ability to generate sufficient cash is cash

1. The best measure of a company's ability to generate sufficient cash is cash provided by:             a.   financing activities.             b.   investing activities.          …

1. The break-even point in sales for Macy\'s Company is $400,000 and the company

1. The break-even point in sales for Macy's Company is $400,000 and the company's contribution margin ratio is 30%.  If Macy's Company desires an income of $84,000, sales would ha…

1. The broad categories of information reported on a business\'s financial state

1. The broad categories of information reported on a business's financial statements are referred to as A.. accounts.B. elements of the financial statements. C. components. D. ass…

1. The budget information prepared by a company must be a part of financial stat

1. The budget information prepared by a company must be a part of financial statements included in form 10-k. A. True B. False 2. MD&A ( included in form 10-k) stands for: A. …

1. The business uses the Allowance Method for doubtful accounts for their accoun

1. The business uses the Allowance Method for doubtful accounts for their accounts receivable. Complete the journal entries for the following: Business determines at end of year t…

1. The calculation of the payback period for an investment when net cash flow is

1. The calculation of the payback period for an investment when net cash flow is even (equal) is: In cost-volume-profit analysis, the unit contribution margin is: A performance re…

1. The capital budgeting decision depends in part on the A. availability of fund

1. The capital budgeting decision depends in part on the A. availability of funds. B. relationships among proposed projects C. risk associated with a particular project D. all of …

1. The carrying value of a long-term note payable: (Points : 2) Is computed as t

1. The carrying value of a long-term note payable: (Points : 2) Is computed as the future value of all remaining future payments, using the market rate as interest Is the face val…

1. The carrying value of a long-term note payable: (Points : 2) Is computed as t

1. The carrying value of a long-term note payable: (Points : 2) Is computed as the future value of all remaining future payments, using the market rate as interest Is the face val…

1. The carrying value of a long-term note payable: (a). Is computed as the futur

1. The carrying value of a long-term note payable: (a). Is computed as the future value of all remaining future payments,(b) using the market rate as interest Is the face value of…

1. The cash account for Santiago Co. on May 31, 2014 indicated a balance of $15,

1. The cash account for Santiago Co. on May 31, 2014 indicated a balance of $15,515. The May bank statement indicated an ending balance of $20,245. Comparing the bank statement, t…

1. The cash budget is usually prepared after the budgeted income statement. True

1. The cash budget is usually prepared after the budgeted income statement. True False 2. The basic idea underlying responsibility accounting is that each manager should be held r…

1. The choice of an inventory costing method has no significant impact on the fi

1. The choice of an inventory costing method has no significant impact on the financial statements. Answer:F 2. Of the three widely used inventory costing methods (FIFO, LIFO, and…

1. The citation, Reg. §1.62-1T indicates: a. that this is a final income tax reg

1. The citation, Reg. §1.62-1T indicates: a. that this is a final income tax regulation, involving Code Section 162. b. that this is a temporary income tax regulation involving Co…

1. The company has $10,000 in its checking account, $20,000 in its savings accou

1. The company has $10,000 in its checking account, $20,000 in its savings account, $1,000 in petty cash, $25,000 in one-year Treasury bills, and $15,000 in a money market fund. W…

1. The company uses lower of cost or market to account for its inventory. At the

1. The company uses lower of cost or market to account for its inventory. At the end of the year, do you expect the company to write its 2. What method does the company use to det…

1. The company was formed when Camen Bay contributed $3,000 to the firm 2. A loc

1. The company was formed when Camen Bay contributed $3,000 to the firm 2. A local bank loaned the firm $4,000 in exchange for hte firm's 1 year note payable 3. Merchandise costin…

1. The company’s sales for thefirst 18 days of December amounted to $460,000. No

1.     The company’s sales for thefirst 18 days of December amounted to $460,000. Normally, thisproduct line generates a gross profit equal to 40 percent ofsales. 2.     Finished …

1. The condensed comparative income statements for Rochelle Corporation follows:

1.            The condensed comparative income statements for Rochelle Corporation follows: ROCHELLE CORPORATION Comparative Income Statements For the Years Ended December 31, 200…

1. The controller of the Anderson Company is preparing data for a conference con

1. The controller of the Anderson Company is preparing data for a conference concerning certain independent aspects of its operations. Required: a. Total fixed costs are $500,000 …

1. The corporate bond of Blue Sky Industrial currently sells at $1,094.00. The b

1. The corporate bond of Blue Sky Industrial currently sells at $1,094.00. The bond has an annual coupon rate of 6% and a face value of $1,000. There are 12 years remaining to mat…

1. The correct entry for each sale of a finished good on account is debit Cost o

1. The correct entry for each sale of a finished good on account is debit Cost of Goods Sold: credit Finished Goods a. b. debit Cost of Goods Sold: credit Finished Goods: debit Ac…

1. The cost incurred (done) by a company to acquire inventory and then sold to c

1. The cost incurred (done) by a company to acquire inventory and then sold to customers is called the cost of goods sold. a. True b. False 2. The cost of goods sold will be shown…

1. The cost of a manufactured product generally consists of which of the followi

1. The cost of a manufactured product generally consists of which of the following costs? a. Direct materials cost and factory overhead cost b. direct labor cost and factory overh…

1. The cost of a product warranty should be included as an expense in the (Point

1. The cost of a product warranty should be included as an expense in the (Points : 2) period the cash is collected for a product sold on account. future period when the cost of r…

1. The cost of an intangible asset with an indefinite life should A) be amortize

1.         The cost of an intangible asset with an indefinite life should A)    be amortized over 20 years. B)    be amortized over the life of the creator plus 70 years. C)    no…

1. The current stock price of ABC is $87. You have the following quotes on ABC o

1. The current stock price of ABC is $87. You have the following quotes on ABC options: Expiration Exercise Price Calls Puts Feb 80 9.30 1.05 Feb 85 8.05 1.15 May 90 3.50 4.35 May…

1. The date of declaration creates a (n) for the corporation. A) Asset B) liabil

1. The date of declaration creates a (n) for the corporation. A) Asset B) liability C) expense D) revenue 2. Rick Company has declared a $40,000 cash dividend to shareholders. The…

1. The delivery truck is estimated to have a life cycle of 200,000 miles. It was

1. The delivery truck is estimated to have a life cycle of 200,000 miles. It was driven for for 16,500 miles in 2015 & 24,600 miles in 2016 2. The office furniture has a life …

1. The direct labor efficiency variance for December is 2. The direct labor rate

1. The direct labor efficiency variance for December is 2. The direct labor rate variance for December is 3. The direct material usage variance for December is Shade Company adopt…

1. The direct materials budget projects purchases of which inventory account? Se

1. The direct materials budget projects purchases of which inventory account? Select one: a. Raw Materials b. Cost of Goods Sold c. Finished Goods d. Work in Process 2. The sellin…