Question :
101. The following financial information was summarized from the accounting records : 1239599
101. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
RailsDivision
LocomotiveDivision
CorporateTotal
Cost of goods sold
$47,200
$30,720
Direct operating expenses
27,200
20,040
Net sales
108,000
78,000
Interest expense
$ 2,040
General overhead
18,160
Income tax
4,700
The gross profit for the Rails Division is: A. $60,800B. $33,600C. $8,700D. $21,150
102. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
RailsDivision
LocomotiveDivision
CorporateTotal
Cost of goods sold
$47,200
$30,720
Direct operating expenses
27,200
20,040
Net sales
108,000
78,000
Interest expense
$ 2,040
General overhead
18,160
Income tax
4,700
The income from operations for the Rails Division is: A. $60,800B. $33,600C. $8,700D. $21,150
103. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
RailsDivision
LocomotiveDivision
CorporateTotal
Cost of goods sold
$47,200
$30,720
Direct operating expenses
27,200
20,040
Net sales
108,000
78,000
Interest expense
$ 2,040
General overhead
18,160
Income tax
4,700
The gross profit for the Locomotive Division is: A. $57,960B. $14,790C. $27,240D. $47,280
104. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
RailsDivision
LocomotiveDivision
CorporateTotal
Cost of goods sold
$47,200
$30,720
Direct operating expenses
27,200
20,040
Net sales
108,000
78,000
Interest expense
$ 2,040
General overhead
18,160
Income tax
4,700
The income from operations for the Locomotive Division is: A. $57,960B. $14,790C. $27,240D. $47,280
105. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
RailsDivision
LocomotiveDivision
CorporateTotal
Cost of goods sold
$47,200
$30,720
Direct operating expenses
27,200
20,040
Net sales
108,000
78,000
Interest expense
$ 2,040
General overhead
18,160
Income tax
4,700
The net income for Train Corporation is: A. $83,180B. $35,940C. $48,390D. $60,840
106. Responsibility accounting reports for profit centers will include A. costs.B. revenues.C. expenses and fixed assets.D. revenues, expenses, net income or loss from operations.
107. Some organizations use internal service departments to provide like services to several divisions or departments within an organization. Which of the following would probably not lend itself as a service department? A. Inventory ControlB. Payroll AccountingC. Information SystemsD. Human Resources
108. The following is a measure of a manager’s performance working in a profit center. A. balance sheetB. rate of return and residual income measuresC. budget performance reportD. divisional income statements
109. Which of the following would not be considered an internal centralized service department? A. Payroll accounting departmentB. Manufacturing departmentC. Information systems departmentD. Purchasing department
110. Avey Corporation had $275,000 in invested assets, sales of $330,000, income from operations amounting to $49,500 and a desired minimum rate of return of 7.5%. The rate of return on investment for Avey Corporation is: A. 8%B. 10%C. 18%D. 7.5%
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