Question :
51. Manufacturing overhead includes: A. costs that the firm cannot associate with : 1230557
51. Manufacturing overhead includes:
A. costs that the firm cannot associate with particular products
B. expenditures for factory utilities, property taxes, insurance, and depreciation on manufacturing plant and equipment
C. expenditures for supervisors’ salaries
D. costs that jointly benefit all goods produced during the period, not any one particular item.
E. all of the above
52. For manufacturing firms, the balance sheet reports the costs of incomplete items as
A. Raw Materials Inventory
B. Work-in-Process Inventory
C. Finished Goods Inventory
D. Cost of goods ready for sale
E. none of the above
53. For manufacturing firms, the cost of completed products remains on the balance sheet as __________ assets until the firm sells the products; upon sale, the cost of the assets becomes a cost of goods sold expense.
A. Direct Materials Inventory
B. Work-in Progress Inventory
C. Finished Goods Inventory
D. Cost of Products Ready for Sale
E. none of the above
54. Which of the following is/are not examples of a period expense?
A. the president’s salary
B. accounting and information systems costs
C. accounting and information systems costs
D. support activity costs such as legal services, employee training, and corporate planning.
E. the factory foreman’s salary
55. Which of the following is/are not a period expense?
A. salaries and commissions of the sales staff
B. costs to produce catalogs
C. marketing costs, such as advertising
D. costs to produce sales literature
E. direct labor
56. If the firm measures an asset at acquisition cost on the balance sheet, it measures expenses based on the _____ of the asset consumed..
A. fair market value
B. acquisition cost
C. current value
D. liquidation value
E. replacement value
57. The sum of net income and other comprehensive income is:
A. Comprehensive Net Income
B. Comprehensive Income
C. Comprehensive Retained Earnings
D. Net Income after comprehensive income items
E. none of the above
58. Both U.S. GAAP and IFRS require firms to report the cumulative effect of other comprehensive income in a balance sheet account called Accumulated
A. Comprehensive Income
B. Net Comprehensive Income
C. Other Comprehensive Income
D. Comprehensive Net Income
E. none of the above
59. Both U.S. GAAP and IFRS require the presentation of an income statement and the presentation of the items of Other Comprehensive Income. U.S. GAAP permits the following reporting format(s) except for:.
A. A single statement of comprehensive income that shows all the changes in net assets except from transactions with owners;
B. A two-statement presentation that includes an income statement and a separate statement of comprehensive income.
C. A separate display of the items comprising Other Comprehensive Income within a statement of changes in shareholders’ equity.
D. A separate display of the items comprising Other Comprehensive Income within a statement of retained earnings.
E. all of the above are acceptable reporting formats
60. While no general principle describes the nature of items excluded from net income and included in Other Comprehensive Income, they tend to arise from remeasurements of assets and liabilities (often, remeasurements at fair value) and not from transactions. For example, IFRS permits but does not require firms to revalue certain noncurrent assets upward to reflect increases in fair value in excess of acquisition cost. Under IFRS, such a revaluation remeasurement increases assets (because the firm now records an existing asset on the balance sheet at a larger number) and increases Other Comprehensive Income. These increases are accumulated in a(n) _____ account, Revaluation Surplus.
A. liability
B. shareholders’ equity
C. revenue
D. asset
E. expense
