Question : 101. The following financial information was summarized from the accounting records : 1233896

 

101. The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31: 

 

SoftwareDivision

HardwareDivision

CorporateTotal

Cost of goods sold

$47,200

$30,720

 

Direct operating expenses

27,200

20,040

 

Net sales

95,000

64,000

 

Interest expense

 

 

$  2,040

General overhead

 

 

18,160

Income tax

 

 

4,700

 

 

 

 

The income from operations for the Software Division is: A. $47,800B. $20,600C. $13,240D. $33,280

102. The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31: 

 

SoftwareDivision

HardwareDivision

CorporateTotal

Cost of goods sold

$47,200

$30,720

 

Direct operating expenses

27,200

20,040

 

Net sales

95,000

64,000

 

Interest expense

 

 

$  2,040

General overhead

 

 

18,160

Income tax

 

 

4,700

 

 

 

 

The gross profit for the Hardware Division is: A. $47,800B. $20,600C. $13,240D. $33,280

103. The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31: 

 

SoftwareDivision

HardwareDivision

CorporateTotal

Cost of goods sold

$47,200

$30,720

 

Direct operating expenses

27,200

20,040

 

Net sales

95,000

64,000

 

Interest expense

 

 

$  2,040

General overhead

 

 

18,160

Income tax

 

 

4,700

 

 

 

 

The income from operations for the Hardware Division is: A. $47,800B. $20,600C. $13,240D. $33,280

104. The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31: 

 

SoftwareDivision

HardwareDivision

CorporateTotal

Cost of goods sold

$47,200

$30,720

 

Direct operating expenses

27,200

20,040

 

Net sales

95,000

64,000

 

Interest expense

 

 

$  2,040

General overhead

 

 

18,160

Income tax

 

 

4,700

 

 

 

 

The net income for Block Corporation is: A. $13,640B. $  8,940C. $15,680D. $10,980

105. 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.

106. 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

107. 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

108. Which of the following would not be considered an internal centralized service department? A. Payroll accounting departmentB. Manufacturing departmentC. Information systems departmentD. Purchasing department

109. Stevenson 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 Stevenson is: A. 8%B. 10%C. 18%D. 7.5%

110. Stevenson Corporation had $550,000 in invested assets, sales of $660,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%. The profit margin for Stevenson is: A. 16%B. 20%C. 18%D. 15%