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Question : 81. Teeco Systems Inc. has a limited amount of direct : 1256747

Accounting

 

 

81. Teeco Systems Inc. has a limited amount of direct material available for products 1A1 and 2B2. Each unit of 1A1 has a contribution margin of $12 and each unit of 2B2 has a contribution margin of $30. A unit of 2B2 uses three times as much direct material as a unit of 1A1. What is Teeco’s most profitable sales mix, assuming there is unlimited demand for either product?  A.  Make all 2B2.B.  Make all 1A1.C.  Make equal number of units of 1A1 and 2B2.D.  Make three times as many 1A1 as 2B2.E.  Make three times as many 2B2 as 1A1.

 

 

82. Bath Company has a limited amount of direct material available for products 111 and 222. Each unit of 111 has a contribution margin of $5 and each unit of 222 has a contribution margin of $25. A unit of 222 uses four times as much direct material as a unit of 111. What is Bath’s most profitable sales mix, assuming there is unlimited demand for either product?A.  Make all 222.B.  Make all 111.C.  Make equal number of units of 111 and 222.D.  Make four times as many 111 as 222.E.  Make four times as many 222 as 111.

 

 

83. What decision rule should be followed when deciding if a business segment should be eliminated?A.  Segments generating a net loss should always be eliminated.B.  Segments with revenues that are more than avoidable expenses should be considered for elimination.C.  Segments with revenues that are more than unavoidable expenses should be considered for elimination.D.  Segments with revenues that are less than avoidable expenses should be considered for elimination.E.  Segments with revenues that are less than unavoidable expenses should be considered for elimination.

 

 

 

 

 

84. A company expects its three departments to yield the following income for next year: 

 

Dept. Q

Dept. R

Dept. S

Sales

$6,000

$7,000

$8,000

Expenses

 

 

 

Avoidable

2,000

3,000

4,000

Unavoidable

1,500

2,500

4,500

Total expenses

3,500

5,500

8,500

Net income (loss)

$2,500

$1,500

$(500)

Compute the change to the company’s total net income if Dept. S is eliminated.A.  $500 increaseB.  $500 decreaseC.  $4,000 increaseD.  $4,000 decreaseE.  $3,500 decrease

 

 

85. A company expects its three departments to yield the following income for next year: 

 

Dept. A

Dept. B

Dept. C

Sales

$6,000

$5,000

6,800

Expenses

 

 

 

Avoidable

2,000

1,000

4,000

Unavoidable

1,500

3,000

2,500

Total expenses

3,500

4,000

6,500

Net income (loss)

$2,500

$1,000

$300

Compute the change to the company’s total net income if Dept. C is eliminated.A.  $300 decreaseB.  $300 increaseC.  $2,800 decreaseD.  $2,800 increaseE.  $6,800 decrease

  

86. Flower Enterprises Inc. expects its three departments to yield the following income for next year: 

 

Dept. F

Dept. G

Dept. H

Sales

$9,000

$10,000

$8,000

Expenses

 

 

 

Avoidable

3,000

2,000

5,000

Unavoidable

4,000

6,000

1,000

Total expenses

7,000

8,000

6,000

Net income (loss)

$2,000

$2,000

$2,000

Which of the following statements is true regarding Flower’s business segments?A.  If Dept. F is eliminated, overall profit will decline $5,000.B.  Overall profit will decline by $2,000 if any one of these segments is eliminated.C.  If Dept. G is eliminated, overall profit will decline $8,000.D. If Dept. H is eliminated, overall profit will increase $3,000.E.  Eliminating Dept. H will reduce overall profit more than eliminating Dept. F.

 

 

87. Barley Enterprises Inc. expects its three departments to yield the following income for next year: 

 

Dept. D

Dept. E

Dept. F

Sales

$5,000

$10,000

$4,000

Expenses

 

 

 

Avoidable

3,000

2,000

5,000

Unavoidable

4,000

4,000

1,000

Total expenses

7,000

6,000

6,000

Net income (loss)

$(2,000)

$4,000

$(2,000)

Which of the following statements is true regarding Flower’s business segments?A.  If Dept. F is eliminated, overall profit will increase by $2,000.B.  Overall profit will decline no matter which of these segments is eliminated.C.  If Dept. E is eliminated, overall profit will decline $4,000.D.  If Dept. D is eliminated, overall profit will decrease by $2,000.E.  Eliminating Dept. F will reduce overall profit more than eliminating Dept. D.

 

 

88. Rocko Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $85,000 and Rocko can also receive $38,000 for trading in the old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life. Should the machine be replaced?

A. Yes, because income will increase by $14,000 per year.

B. Yes, because income will increase by $23,000 in total.

C. No, because the company will be $23,000 worse off in total.

D. No, because the income will decrease by $14,000 per year.

E. Rocko will be not be better or worse off by replacing the machine. 

 

89. Hondo Company has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $108,000 and Rocko can also receive $38,000 for trading in the old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life. Should the machine be replaced?

A. Yes, because income will increase by $14,000 per year.

B. Yes, because income will increase by $52,000 immediately.

C. No, because the company will be $108,000 worse off.

D. No, because the income will decrease by $14,000 per year.

E. Hondo will not be better or worse off by replacing the machine.

 

 

 

 

 

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161. U.S. GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions.  Which of the following is/are true? A. The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits. B. In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits. C. In external market transactions, identifiable intangible assets have either finite lives or indefinite lives.D. In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method. E. all of the above

 

162. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is/are not true? A. U.S. GAAP provides fourteen criteria, any one of which qualifies a lease as a capital lease. B. IFRS provides general criteria for identifying the entity enjoying the rewards and incurring the risk.C. Firms cannot currently apply the fair value option to capital leases. D. The FASB and the IASB have undertaken a joint project involving the lessee’s accounting for leases which may result in treating all leases as capital leases.E. all of the above

 

163. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. B. When the lessor enjoys the benefits and bears the risk, the lease is a capital lease.C. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. D. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk. E. Firms cannot currently apply the fair value option to capital leases.

 

164. U.S. GAAP and IFRS account for notes and nonconvertible bonds payable similarly.Which of the following is/are not true? A. Firms initially record long-term notes and bonds at their issue price, the present value of the future contractual cash flows discounted at the market interest rate for the bonds at the time of issue. B. The market interest rate at the time of issue is the rate that discounts the contractual cash flows to the initial issue price.C. If the market interest rate equals the coupon rate for the bonds, the firm will issue the bonds for face value.D. If the market interest rate exceeds the coupon rate, the firm will issue the bonds for more than face value. E. If the coupon rate exceeds the market interest rate, the firm will issue the bonds for more than face value.

 

165. IFRS _____ firms to remeasure property, plant, and equipment upward for increases in fair value under certain conditions. U.S. GAAP _____ such upward remeasurements.  A. permits; permits B. permits; does not permit C. does not permit: does not permit D. does not permit: permits E. none of the above

 

166. Which of the following is not true? A. Firms reclassify gains and losses initially classified in other comprehensive income into net income when a confirming event subsequently occurs. B. Firms close amounts in other comprehensive income for a period to Accumulated Other Comprehensive Income at the end of the period.C. Net income includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm’s core business. D. Authoritative guidance classifies gains and losses from the remeasurement of certain assets and liabilities as either net income or other comprehensive income. E. The FASB’s and IASB’s conceptual framework contains a conceptual model for classifying items in net income versus in other comprehensive income.

 

167. Both U.S. GAAP and IFRS often refer to ownership of a(n) _____ of the voting stock of another entity as indicating control, unless evidence indicates that the owner cannot exercise control. A. direct investmentB. indirect investmentC. majorityD. minorityE. effective control

 

168. Which of the following is not true? A. Comprehensive income equals the net amount of revenues, expenses, gains, and losses during an accounting period. B. Authoritative guidance classifies revenues and expenses arising from a firm’s core business as components of net income. C. Net income includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm’s core business. D. Authoritative guidance classifies gains and losses from the remeasurement of certain assets and liabilities as either net income or other comprehensive income. E. The FASB’s and IASB’s conceptual framework contains a conceptual model for classifying items in net income versus in other comprehensive income.

 

169. The FASB and the IASB are reconsidering the role of uncertainty, or probability, in the definition, recognition, and measurement of liabilities. Existing recognition criteria include a probable future sacrifice of resources; one issue involves the minimum probability level to warrant recognition of an uncertain obligation as a liability. U.S. GAAP does not specify a minimum probability level, although the rule-of-thumb in practice is approximately _____ percent.  A. 50B. 60C. 70D. 80E. 90

 

170. Which of the following is not true? A. Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale. B. Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory. C. If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.D. U.S. GAAP uses a combination of replacement cost and net realizable values to measure market value. E. U.S. GAAP and IFRS permits firms to remeasure inventories upward when market value exceeds acquisition cost.

 

 

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July 1, 2023
    

 

 

161. U.S. GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions.  Which of the following is/are true? A. The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits. B. In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits. C. In external market transactions, identifiable intangible assets have either finite lives or indefinite lives.D. In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method. E. all of the above

 

162. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is/are not true? A. U.S. GAAP provides fourteen criteria, any one of which qualifies a lease as a capital lease. B. IFRS provides general criteria for identifying the entity enjoying the rewards and incurring the risk.C. Firms cannot currently apply the fair value option to capital leases. D. The FASB and the IASB have undertaken a joint project involving the lessee’s accounting for leases which may result in treating all leases as capital leases.E. all of the above

 

163. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. B. When the lessor enjoys the benefits and bears the risk, the lease is a capital lease.C. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. D. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk. E. Firms cannot currently apply the fair value option to capital leases.

 

164. U.S. GAAP and IFRS account for notes and nonconvertible bonds payable similarly.Which of the following is/are not true? A. Firms initially record long-term notes and bonds at their issue price, the present value of the future contractual cash flows discounted at the market interest rate for the bonds at the time of issue. B. The market interest rate at the time of issue is the rate that discounts the contractual cash flows to the initial issue price.C. If the market interest rate equals the coupon rate for the bonds, the firm will issue the bonds for face value.D. If the market interest rate exceeds the coupon rate, the firm will issue the bonds for more than face value. E. If the coupon rate exceeds the market interest rate, the firm will issue the bonds for more than face value.

 

165. IFRS _____ firms to remeasure property, plant, and equipment upward for increases in fair value under certain conditions. U.S. GAAP _____ such upward remeasurements.  A. permits; permits B. permits; does not permit C. does not permit: does not permit D. does not permit: permits E. none of the above

 

166. Which of the following is not true? A. Firms reclassify gains and losses initially classified in other comprehensive income into net income when a confirming event subsequently occurs. B. Firms close amounts in other comprehensive income for a period to Accumulated Other Comprehensive Income at the end of the period.C. Net income includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm’s core business. D. Authoritative guidance classifies gains and losses from the remeasurement of certain assets and liabilities as either net income or other comprehensive income. E. The FASB’s and IASB’s conceptual framework contains a conceptual model for classifying items in net income versus in other comprehensive income.

 

167. Both U.S. GAAP and IFRS often refer to ownership of a(n) _____ of the voting stock of another entity as indicating control, unless evidence indicates that the owner cannot exercise control. A. direct investmentB. indirect investmentC. majorityD. minorityE. effective control

 

168. Which of the following is not true? A. Comprehensive income equals the net amount of revenues, expenses, gains, and losses during an accounting period. B. Authoritative guidance classifies revenues and expenses arising from a firm’s core business as components of net income. C. Net income includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm’s core business. D. Authoritative guidance classifies gains and losses from the remeasurement of certain assets and liabilities as either net income or other comprehensive income. E. The FASB’s and IASB’s conceptual framework contains a conceptual model for classifying items in net income versus in other comprehensive income.

 

169. The FASB and the IASB are reconsidering the role of uncertainty, or probability, in the definition, recognition, and measurement of liabilities. Existing recognition criteria include a probable future sacrifice of resources; one issue involves the minimum probability level to warrant recognition of an uncertain obligation as a liability. U.S. GAAP does not specify a minimum probability level, although the rule-of-thumb in practice is approximately _____ percent.  A. 50B. 60C. 70D. 80E. 90

 

170. Which of the following is not true? A. Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale. B. Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory. C. If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.D. U.S. GAAP uses a combination of replacement cost and net realizable values to measure market value. E. U.S. GAAP and IFRS permits firms to remeasure inventories upward when market value exceeds acquisition cost.

 

 

default image
July 1, 2023
    

 

 

161. U.S. GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions.  Which of the following is/are true? A. The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits. B. In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits. C. In external market transactions, identifiable intangible assets have either finite lives or indefinite lives.D. In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method. E. all of the above

 

162. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is/are not true? A. U.S. GAAP provides fourteen criteria, any one of which qualifies a lease as a capital lease. B. IFRS provides general criteria for identifying the entity enjoying the rewards and incurring the risk.C. Firms cannot currently apply the fair value option to capital leases. D. The FASB and the IASB have undertaken a joint project involving the lessee’s accounting for leases which may result in treating all leases as capital leases.E. all of the above

 

163. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. B. When the lessor enjoys the benefits and bears the risk, the lease is a capital lease.C. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. D. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk. E. Firms cannot currently apply the fair value option to capital leases.

 

164. U.S. GAAP and IFRS account for notes and nonconvertible bonds payable similarly.Which of the following is/are not true? A. Firms initially record long-term notes and bonds at their issue price, the present value of the future contractual cash flows discounted at the market interest rate for the bonds at the time of issue. B. The market interest rate at the time of issue is the rate that discounts the contractual cash flows to the initial issue price.C. If the market interest rate equals the coupon rate for the bonds, the firm will issue the bonds for face value.D. If the market interest rate exceeds the coupon rate, the firm will issue the bonds for more than face value. E. If the coupon rate exceeds the market interest rate, the firm will issue the bonds for more than face value.

 

165. IFRS _____ firms to remeasure property, plant, and equipment upward for increases in fair value under certain conditions. U.S. GAAP _____ such upward remeasurements.  A. permits; permits B. permits; does not permit C. does not permit: does not permit D. does not permit: permits E. none of the above

 

166. Which of the following is not true? A. Firms reclassify gains and losses initially classified in other comprehensive income into net income when a confirming event subsequently occurs. B. Firms close amounts in other comprehensive income for a period to Accumulated Other Comprehensive Income at the end of the period.C. Net income includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm’s core business. D. Authoritative guidance classifies gains and losses from the remeasurement of certain assets and liabilities as either net income or other comprehensive income. E. The FASB’s and IASB’s conceptual framework contains a conceptual model for classifying items in net income versus in other comprehensive income.

 

167. Both U.S. GAAP and IFRS often refer to ownership of a(n) _____ of the voting stock of another entity as indicating control, unless evidence indicates that the owner cannot exercise control. A. direct investmentB. indirect investmentC. majorityD. minorityE. effective control

 

168. Which of the following is not true? A. Comprehensive income equals the net amount of revenues, expenses, gains, and losses during an accounting period. B. Authoritative guidance classifies revenues and expenses arising from a firm’s core business as components of net income. C. Net income includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm’s core business. D. Authoritative guidance classifies gains and losses from the remeasurement of certain assets and liabilities as either net income or other comprehensive income. E. The FASB’s and IASB’s conceptual framework contains a conceptual model for classifying items in net income versus in other comprehensive income.

 

169. The FASB and the IASB are reconsidering the role of uncertainty, or probability, in the definition, recognition, and measurement of liabilities. Existing recognition criteria include a probable future sacrifice of resources; one issue involves the minimum probability level to warrant recognition of an uncertain obligation as a liability. U.S. GAAP does not specify a minimum probability level, although the rule-of-thumb in practice is approximately _____ percent.  A. 50B. 60C. 70D. 80E. 90

 

170. Which of the following is not true? A. Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale. B. Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory. C. If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.D. U.S. GAAP uses a combination of replacement cost and net realizable values to measure market value. E. U.S. GAAP and IFRS permits firms to remeasure inventories upward when market value exceeds acquisition cost.

 

 

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Public Relations, 3 pages
Dissertation
August 5, 2021
    

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Journal article, 20 pages
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August 5, 2021
    

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Political Science, 6 pages
Admission Essay
August 5, 2021
    

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Tourism, 1 page
Discussion Essay
August 5, 2021
    

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Philosophy, 5 pages
Report
August 5, 2021
    

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Psychology, 4 pages
Essay (any type)
August 5, 2021
    

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customer #17823
Business, 8 pages

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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