Order Now

Question : 41) A corporation has a required rate of return [RRR] of : 1196216

Accounting

 

41)

A corporation has a required rate of return [RRR] of 13% for all subsidiaries. They have determined that the 13% is too high for a new subsidiary, which earned residual income of $200,000 in year 1, and $300,000 in year 2. Operating income for the new subsidiary (established with an investment of $4,500,000), was $750,000 for year 1 and $650,000 for year 2. What rate of return did the new subsidiary earn in years 1 and 2 respectively? 41)

______ A)

12.22% and 7.77% B)

10.00% and 7.77% C)

12.22% and 13.00% D)

10.00% and 10.00% E)

13.00% and 10.00%

42)

What disadvantage is there in using ROI and/or RI as performance measures? 42)

______ A)

RI and ROI are both single-period measures. B)

Imputed costs that are deducted in the RI calculation, are not recognized in accrual accounting, and are therefore not included in the operating figure used in calculating ROI. C)

RI is measured in absolute dollars but ROI is in percentages. D)

ROI may decrease when business expands if income does not increase in line with the new investment. E)

A manager’s bonus will decrease when ROI decreases.

43)

A company has total assets of $500,000, a required rate of return of 10%, and operating income for the year was $200,000. What is the residual income? 43)

______ A)

$150,000 B)

$250,000 C)

$175,000 D)

$480,000 E)

$200,000

44)

Which of the following performance measures is more likely to promote goal congruence? 44)

______ A)

residual income B)

marginal income C)

return on investment D)

inventory turnover E)

contribution margin

45)

Berger Publishing has two divisions which operate autonomously. Their results for 2001 were as follows:

 

TorontoVancouver

Sales$5,000,000$6,000,000

Contribution margin2,500,0003,000,000

Operating income2,000,0003,500,000

Investment base 6,500,0007,500,000

 

The company’s desired rate of return is 15%.

 

What are the respective residual incomes for the Toronto and Vancouver divisions? 45)

______ A)

$1,025,000; $1,125,000 B)

$1,075,000; $1,125,000 C)

$1,025,000; $2,375,000 D)

$2,375,000; $1,025,000 E)

$975,000; $1,125,000

46)

The Auto Division of Fran Corporation has $2.5 million in total assets and $200,000 in liabilities, while the Transportation Division has $5 million in total assets and $3 million in liabilities. What are the imputed costs of the Auto division and of the Transportation division, respectively, if the corporation has a required rate of return of 11%? 46)

______ A)

$253,000 and $330,000 B)

$275,000 and $550,000 C)

$297,000 and $880,000 D)

$200,000 and $3,000,000 E)

$275,000 and $330,000

47)

Miller Medical Services provided the following information for 2001 operations in their Hospital Bed Division.

 

Revenues$2,000,000

Accounts receivable500,000

Required rate of return11%

Operating assets1,500,000

Net operating income800,000

Taxable income520,000

Total assets$6,500,000

 

What is the Hospital Bed’s residual income? 47)

______ A)

$30,000 B)

$85,000 C)

<$250,000> D)

$1,285,000 E)

<$195,000>

48)

The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:

 

Alpha DivisionBeta DivisionGamma Division

Sales$2,500,000(a)$1,150,000

Net operating income$1,500,000$650,000$575,000

Total assets(b)(c)$766,667

Return on investment 0.250.15(d)

Return on sales(e)0.100.5

 

What is the Alpha Division’s return on sales? 48)

______ A)

0.80 B)

0.75 C)

0.25 D)

0.60 E)

0.42

49)

Which of the following is not a reason for evaluating subunits over a multi-year time horizon? 49)

______ A)

Managers may curtail R & D or plant maintenance in order to increase short-term results. B)

The NPV of the cash flows over the life of an investment equals [total assets ÷ ROI]. C)

Investments may actually decrease ROI and or RI in the short-term. D)

Investments may actually decrease ROI and or RI in the short-term, and benefits of actions taken in the current period may not show up in a short-term performance measure. E)

Benefits of actions taken in the current period may not show up in a short-term performance measure

50)

Miller Medical Services provided the following information for 2001 operations in their Hospital Bed Division.

 

Revenues$2,000,000

Accounts receivable500,000

Total assets 1,500,000

Net operating income 800,000

Taxable income 520,000

 

What is the Hospital Bed Division’s return on sales? 50)

______ A)

1.33 B)

0.53 C)

0.92 D)

2.50 E)

0.00

Use the information below to answer the following question(s).

 

The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:

 

Alpha DivisionBeta DivisionGamma Division

Sales$2,500,000(a)$1,150,000

Net operating income$1,500,000$650,000$

575,000

Total assets(b)(c)$

766,667

Return on investment0.250.15(d)

Return on sales(e)0.100.5

 

 

Continue to order Get a quote
Place your order
(550 words)

Approximate price: $22

July 1, 2023
    

 

Multiple Choice Questions 

44.The classification and normal balance of the accounts receivable account is:   

A. an asset with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. a revenue with a debit balance

 

 

 

45.The classification and normal balance of the salaries expense account is:   

A. an expense with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. an expense with a debit balance

 

 

 

46.A business earns $4,000 from various charge account clients. To record this transaction, the business would:   

A. Debit Accounts Receivable; Credit Cash

 

B. Debit Accounts Receivable; Credit Revenue

 

C. Debit Cash; Credit Accounts Receivable

 

D. Debit Accounts Payable; Credit Revenue

 

 

 

47.Select the entry below that records paying employees for work performed during the pay period?   

A. debit Cash and credit Salary Expense

 

B. debit Salary Expense and credit Cash

 

C. debit Salary Expense and credit Accounts Receivable

 

D. debit Cash, and credit Accounts Receivable

 

 

 

48.A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:   

A. Debiting Accounts Payable; Crediting Utilities Expense

 

B. Debiting Utilities Expense; Crediting Accounts Receivable

 

C. Debiting Utilities Expense; Crediting Accounts Payable

 

D. Debiting Utilities Expense; Crediting Cash

 

 

 

49.A business purchases equipment costing $4,000. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:   

A. Debit Equipment $2,500; Credit Accounts Payable $2,500

 

B. Debit Equipment $1,500; Credit Cash $1,500

 

C. Debit Equipment $4,000; Credit Accounts Payable $4,000

 

D. Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts Payable $2,500

 

 

 

50.A business performed $6,000 of services. Their customer paid $1,000 of the amount owed right away but charged the remaining amount. To record this transaction, the business would:   

A. Debit Cash $1,000 and Debit Accounts Receivable $5,000; Credit Fee Income $6,000

 

B. Debit Accounts Receivable $5,000 and; Credit Fee Income $5,000

 

C. Debit Cash $1,000; Credit Fee Income $1,000

 

D. Debit Cash $1,000; Credit Accounts Payable $5,000 and Credit Fee Income $6,000

 

 

 

51.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?   

A. debit Cash and credit Ty Knott, Capital

 

B. debit Cash and credit Salary Expense

 

C. debit Salary Expense and credit Cash

 

D. debit Ty Knott, Drawing, and credit Cash

 

 

 

52.The ending capital balance appears on which of the following statement(s)?   

A. Statement of owner's equity

 

B. Income Statement

 

C. Statement of owner's equity and balance sheet

 

D. Statement of owner's equity and income statement

 

 

 

53.On a statement of owner's equity, beginning capital is $30,000, Net Income for the year is $11,000 and Drawing for the year is $6,000, the ending capital amount would be   

A. $30,000.

 

B. $35,000.

 

C. $47,000.

 

D. $25,000.

Beginning Capital, $30,000 + Net Income, $11,000 - Drawing, $6,000 = Ending Capital, $35,000.

 

 

 

default image
July 1, 2023
    

 

Multiple Choice Questions 

44.The classification and normal balance of the accounts receivable account is:   

A. an asset with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. a revenue with a debit balance

 

 

 

45.The classification and normal balance of the salaries expense account is:   

A. an expense with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. an expense with a debit balance

 

 

 

46.A business earns $4,000 from various charge account clients. To record this transaction, the business would:   

A. Debit Accounts Receivable; Credit Cash

 

B. Debit Accounts Receivable; Credit Revenue

 

C. Debit Cash; Credit Accounts Receivable

 

D. Debit Accounts Payable; Credit Revenue

 

 

 

47.Select the entry below that records paying employees for work performed during the pay period?   

A. debit Cash and credit Salary Expense

 

B. debit Salary Expense and credit Cash

 

C. debit Salary Expense and credit Accounts Receivable

 

D. debit Cash, and credit Accounts Receivable

 

 

 

48.A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:   

A. Debiting Accounts Payable; Crediting Utilities Expense

 

B. Debiting Utilities Expense; Crediting Accounts Receivable

 

C. Debiting Utilities Expense; Crediting Accounts Payable

 

D. Debiting Utilities Expense; Crediting Cash

 

 

 

49.A business purchases equipment costing $4,000. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:   

A. Debit Equipment $2,500; Credit Accounts Payable $2,500

 

B. Debit Equipment $1,500; Credit Cash $1,500

 

C. Debit Equipment $4,000; Credit Accounts Payable $4,000

 

D. Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts Payable $2,500

 

 

 

50.A business performed $6,000 of services. Their customer paid $1,000 of the amount owed right away but charged the remaining amount. To record this transaction, the business would:   

A. Debit Cash $1,000 and Debit Accounts Receivable $5,000; Credit Fee Income $6,000

 

B. Debit Accounts Receivable $5,000 and; Credit Fee Income $5,000

 

C. Debit Cash $1,000; Credit Fee Income $1,000

 

D. Debit Cash $1,000; Credit Accounts Payable $5,000 and Credit Fee Income $6,000

 

 

 

51.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?   

A. debit Cash and credit Ty Knott, Capital

 

B. debit Cash and credit Salary Expense

 

C. debit Salary Expense and credit Cash

 

D. debit Ty Knott, Drawing, and credit Cash

 

 

 

52.The ending capital balance appears on which of the following statement(s)?   

A. Statement of owner's equity

 

B. Income Statement

 

C. Statement of owner's equity and balance sheet

 

D. Statement of owner's equity and income statement

 

 

 

53.On a statement of owner's equity, beginning capital is $30,000, Net Income for the year is $11,000 and Drawing for the year is $6,000, the ending capital amount would be   

A. $30,000.

 

B. $35,000.

 

C. $47,000.

 

D. $25,000.

Beginning Capital, $30,000 + Net Income, $11,000 - Drawing, $6,000 = Ending Capital, $35,000.

 

 

 

default image
July 1, 2023
    

 

Multiple Choice Questions 

44.The classification and normal balance of the accounts receivable account is:   

A. an asset with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. a revenue with a debit balance

 

 

 

45.The classification and normal balance of the salaries expense account is:   

A. an expense with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. an expense with a debit balance

 

 

 

46.A business earns $4,000 from various charge account clients. To record this transaction, the business would:   

A. Debit Accounts Receivable; Credit Cash

 

B. Debit Accounts Receivable; Credit Revenue

 

C. Debit Cash; Credit Accounts Receivable

 

D. Debit Accounts Payable; Credit Revenue

 

 

 

47.Select the entry below that records paying employees for work performed during the pay period?   

A. debit Cash and credit Salary Expense

 

B. debit Salary Expense and credit Cash

 

C. debit Salary Expense and credit Accounts Receivable

 

D. debit Cash, and credit Accounts Receivable

 

 

 

48.A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:   

A. Debiting Accounts Payable; Crediting Utilities Expense

 

B. Debiting Utilities Expense; Crediting Accounts Receivable

 

C. Debiting Utilities Expense; Crediting Accounts Payable

 

D. Debiting Utilities Expense; Crediting Cash

 

 

 

49.A business purchases equipment costing $4,000. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:   

A. Debit Equipment $2,500; Credit Accounts Payable $2,500

 

B. Debit Equipment $1,500; Credit Cash $1,500

 

C. Debit Equipment $4,000; Credit Accounts Payable $4,000

 

D. Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts Payable $2,500

 

 

 

50.A business performed $6,000 of services. Their customer paid $1,000 of the amount owed right away but charged the remaining amount. To record this transaction, the business would:   

A. Debit Cash $1,000 and Debit Accounts Receivable $5,000; Credit Fee Income $6,000

 

B. Debit Accounts Receivable $5,000 and; Credit Fee Income $5,000

 

C. Debit Cash $1,000; Credit Fee Income $1,000

 

D. Debit Cash $1,000; Credit Accounts Payable $5,000 and Credit Fee Income $6,000

 

 

 

51.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?   

A. debit Cash and credit Ty Knott, Capital

 

B. debit Cash and credit Salary Expense

 

C. debit Salary Expense and credit Cash

 

D. debit Ty Knott, Drawing, and credit Cash

 

 

 

52.The ending capital balance appears on which of the following statement(s)?   

A. Statement of owner's equity

 

B. Income Statement

 

C. Statement of owner's equity and balance sheet

 

D. Statement of owner's equity and income statement

 

 

 

53.On a statement of owner's equity, beginning capital is $30,000, Net Income for the year is $11,000 and Drawing for the year is $6,000, the ending capital amount would be   

A. $30,000.

 

B. $35,000.

 

C. $47,000.

 

D. $25,000.

Beginning Capital, $30,000 + Net Income, $11,000 - Drawing, $6,000 = Ending Capital, $35,000.

 

 

 

default image
Essay (any type)
August 22, 2022
    

They have a magnificent team. These people are always kind and willing to listen to your concerns or issues. Better yet, your assignment is always ready before the time, they usually send you a draft to double-check before they finalize your paper.

 

default image
Customer #32567
Zoology, 8 Pages
Case study
August 22, 2022
    

Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.

default image
Customer #30093
Biology (and other Life Sciences), 6 pages
Presentation/PPT
August 22, 2022
    

The work has not been graded but I like the output that was submitted to me. Is it possible for the same prof to do the next assignment I will be submitting? If possible, I will greatly appreciate it.

default image
Customer #37612
Computer science, 8 pages
Journal article
August 22, 2022
    

My third using this writer and absolutely amazing work! Very punctual and very understanding.

default image
Customer #34820
Agriculture, 4 pages
Article
August 22, 2022
    

Outstanding job in writing my paper. I am always thrill to receive a well written paper that follows the instructions and the thorough details put into my paper. The quality of this paper is beyond awesome. Thank you so much.

default image
Customer #17907
Technology, 5 pages
Thesis/Thesis chapter
August 22, 2022
    

I absolutely love this writer! He/she always cranks out a fabulous paper and follows the assignment guidelines/instructions perfectly. Thanks again for always providing such quality work!!!

default image
Customer #32146
Economics, 9 pages
Research paper
August 22, 2022
    

It took some time to achieve the product I was looking for, but we eventually got there. I do feel like a lot of hard work was put into this, and it even exceeded the page requirement. I'm pretty pleased overall. I give my thanks.

default image
Customer #22371
Ecology, 5 pages
Lab Report
August 22, 2022
    

Outstanding work! This writer followed every instruction and my paper came back with an A! I recommend to anyone needing help! Thank you again ❤️

default image
Customer #13712
Nursing, 6 pages
Outline
August 22, 2022
    

Outstanding job in writing my paper. I am always thrill to receive a well written paper that follows the instructions and the thorough details put into my paper. The quality of this paper is beyond awesome. Thank you so much.

default image
Customer #267302
IT, Web, 6 pages
Essay (any type)
August 22, 2022
    

Made 100% on both the outline and the paper. Quick turnaround time and my writer responded within 30 min or less. Any edits my instructor needed, my writer was patient and worked diligently to accomplish the task. Would recommend my writer to anyone!

default image
Customer #14472
International Trade, 8 pages
Essay (any type)
August 5, 2021
    

You are making my life so much easier! I am a single mom that works and goes to school. You guys are helping me with my projects so I can have more free time with my son.

default image
customer #13832
Tourism, 3 pages
Annotated Bibliography
August 5, 2021
    

I was sure it can fit in a single page but the next time I will add one more page because I am impressed with your professionalism and quality. Will use many more times till I graduate.

default image
customer #12008
Management, 7 pages
Essay (any type)
August 5, 2021
    

Simple registration and quality services. I just ordered one paper, and it was good enough to pass the exam. That is what I need the most. Good job.

default image
customer #16257
Communication, 4 pages
Research Proposal
August 5, 2021
    

I couldn’t finish my freaking essay, and I was very desperate. A friend of mine sent me a link, and that is how I found out about you guys. Thank you for professional tips and editing. Now, I understand how to write it properly.

default image
customer #17128
Law, 5 pages
Reflection
August 5, 2021
    

I’m so grateful to you since you managed to complete my term paper in one day! You are definitely the best company ever!

default image
customer #16528
Public Relations, 7 pages
Essay (any type)
August 5, 2021
    

I am sure on your ability to provide any type of paper I will order. I wish I could develop that skill your writers have to be able to have a flow of ideas and excellent sequencing of thoughts in writing.

default image
customer #19552
Medicine, 5 pages
Coursework
August 5, 2021
    

I ordered a thesis paper and was satisfied. All the guys were polite and highly professional, even when I wrote to them several times per day. Thanks for your passion!

default image
customer #20376
Nursing, 6 pages
Discussion Essay
August 5, 2021
    

I turned to the service twice, and my papers always were beyond the expectations. To tell the truth, I was ready to find some grammar errors or something like that. However, everything was neat and tidy.

default image
customer #18529
Marketing, 1 page
August 5, 2021

My friend recommended Doctor My Essay to me. It is convenient! Now we both turn to the service periodically coz wanna save some time and use it more effectively. I know that while I’m developing my startup, an expert is working on paper. Time management in work!

default image
Research Paper
August 5, 2021
    

I write all paper works by myself but have some problems with literacy. Actually, I have enormous problems because English is not my native language. However, with proofreading from Doctor My Essay, I can relax and don’t be ashamed of mistakes.

default image
customer #12924
Business, 7 pages
Argumentative Essay
August 5, 2021
    

Your ability to write concisely is a finding. The paper has a solid argument. It’s clear that the writer understood central claim about the topic. He also presented original ideas to consider.

default image
customer #19304
Management, 3 pages
Coursework
August 5, 2021
    

That paper got the highest grade in my class and the professor thinks I’m the smartest student. Lol.

default image
customer #12387
Accounting, 6 pages
Essay (any type)
August 5, 2021
    

I was convinced that paper writing services are the fiction for naive students. But when it came to my research paper that was to be composed in 72 hours, I had no other options. I made the right choice when I ordered it from you!

default image
customer #12924
Ethics, 4 pages
Business Plan
August 5, 2021
    

I was also satisfied with the service. Usually, I write everything by myself, but this time ( I have no idea how it happens!) I missed the deadline. My writer was very responsible, wrote the essay quickly, and kept the instructions. Nice to know that such experts exist!

default image
customer #15677
Marketing, 10 pages
Annotated Bibliography
August 5, 2021
    

It is really affordable! The prices start from 9$, which is an excellent proposal on the market. Recently I worked with another service that took much more money and provided lower quality papers.

default image
customer #11234
Sociology, 9 pages
Research proposal
August 5, 2021
    

I am absolutely satisfied. I am first timer here. Revision was made quickly, and the author met my expectations. Thanks a lot. Paper is phenomenal.

default image
customer #15327
Economics, 5 pages
Essay (any type)
August 5, 2021
    

Having heard a lot of negative reviews about such services, I was a bit skeptical. However, our cooperation with Doctor My Essay was without pitfalls. I made two comments about the final work, and they re-wrote some parts very promptly. I am satisfied and will turn to them in the future.

default image
customer #17823
Human Resource Management, 2 pages
Research paper
August 5, 2021
    

It was my first experience in online ordering, and I was a bit nervous. However, this was for nothing. I’ve got a high mark!

default image
customer #12372
Public Relations, 3 pages
Dissertation
August 5, 2021
    

I understand that buying essays is a doubtful thing. You don’t put effort, don’t represent your ideas… However, I don’t perceive Doctor My Essay as a standard service. They don’t sell papers. They share high expertise!

default image
customer #12376
Journal article, 20 pages
Coursework
August 5, 2021
    

According to my previous experience, this service is really the best. They support the client and have competitive writers. I give them a perfect score!

default image
customer #19266
Political Science, 6 pages
Admission Essay
August 5, 2021
    

Nice service! It is cool that you can use the calculator on the main page and understand the price policy. For me, it is a huge plus!

default image
customer #11437
Tourism, 1 page
Discussion Essay
August 5, 2021
    

Thanks to God I found this service! If I didn’t send my research to the teacher on time, he would eat me. I tell you! However, with doctor my essay service, I met the deadline, and I am still alive.

default image
customer #12692
Philosophy, 5 pages
Report
August 5, 2021
    

Your service is excellent! Convenient and not expensive. Thanks for that!

default image
customer #10923
Psychology, 4 pages
Essay (any type)
August 5, 2021
    

If you have problems with time management, just like me, you need to cooperate with Doctor My Essay. Once you registered and made the order, you understand how easier it makes your life! Everything is online: ordering, communication… You can control the process everywhere and be sure that an expert will provide a high-level paper.

default image
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.

Read more

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.

Read more

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.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

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.

Read more