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Accounting multiple choice questions | Accounting homework help

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18. Sanderson sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $5 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, profit will be: 
A. $15.
B. $20.
C. $50.
D. an amount that cannot be derived based on the information presented.
E. an amount other than those in choices “A,” “B,” and “C”, but one that can be derived based on the information presented. 

 

Question:

 

19. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company’s contribution margin per unit is: 
A. $22.
B. $28.
C. $35.
D. $37.
E. an amount other than those above.

 

Question:

 


 20. At a volume of 20,000 units, Dries reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company’s break-even point in units is: 
A. 7,027 (rounded).
B. 8,667 (rounded).
C. 9,286 (rounded).
D. 7,429 (rounded).
E. an amount other than those above.

 

Question:

 

 

 

21. A recent income statement of Black Corporation reported the following data:

  

If these data are based on the sale of 20,000 units, the contribution margin per unit would be: 
A. $40.
B. $150.
C. $290.
D. $360.
E. an amount other than those above.

 

 

 

Question:

 

 

 

 

 

 22. A recent income statement of Black Corporation reported the following data:

  

If these data are based on the sale of 20,000 units, the break-even point would be: 
A. 9,565 units (rounded).
B. 11,000 units (rounded).
C. 7,586 units (rounded).
D. 14,667 units (rounded).
E. an amount other than those above.

 

 

 

Question:

 


23. A recent income statement of Suni Corporation reported the following data:

  

If these data are based on the sale of 20,000 units, the break-even point would be: 
A. 7,500 units.
B. 11,628 units.
C. 12,500 units.
D. 33,333 units.
E. an amount other than those above.

 

 

 

 

 

Question:

 

 

 

 24. A recent income statement of Yang Corporation reported the following data:

  

If these data are based on the sale of 5,000 units, the break-even sales would be: 
A. $2,000,000.
B. $2,206,000.
C. $2,500,000.
D. $10,000,000.
E. an amount other than those above.

 

 

 

Question:

 

25. Lawson, Inc. sells a single product for $12. Variable costs are $8 per unit and fixed costs total $360,000 at a volume level of 60,000 units. Assuming that fixed costs do not change, Lawson’s break-even point would be: 
A. 30,000 units.
B. 45,000 units.
C. 90,000 units.
D. negative because the company loses $2 on every unit sold.
E. a positive amount other than those given above.

 

Question:

 

26. Grey, Inc. sells a single product for $20. Variable costs are $8 per unit and fixed costs total $120,000 at a volume level of 5,000 units. Assuming that fixed costs do not change, Green’s break-even sales would be: 
A. $160,000.
B. $200,000.
C. $300,000.
D. $480,000.
E. an amount other than those above.

 

Question:

 

 27. Orion recently reported sales revenues of $800,000, a total contribution margin of $300,000, and fixed costs of $180,000. If sales volume amounted to 10,000 units, the company’s variable cost per unit must have been: 
A. $12.
B. $32.
C. $50.
D. $92.
E. an amount other than those above.

 

 

 

Question:

 

28. Strayer has a break-even point of 120,000 units. If the firm’s sole product sells for $40 and fixed costs total $480,000, the variable cost per unit must be: 
A. $4.
B. $36.
C. $44.
D. an amount that cannot be derived based on the information presented.
E. an amount other than those in choices “A,” “B,” and “C”, but one that can be derived based on the information presented.

 

 

 

Question:

 

 

 

29. Ribco Co. makes and sells only one product. The unit contribution margin is $6 and the break-even point in unit sales is 24,000. The company’s fixed costs are: 
A. $4,000.
B. $14,400.
C. $40,000.
D. $144,000.
E. an amount other than those above.

 

 
Question:

 

31. At a volume level of 500,000 units, Sullivan reported the following information:

  

The company’s contribution-margin ratio is closest to: 
A. 0.33.
B. 0.40.
C. 0.60.
D. 0.67.
E. an amount other than those above.

 

 

 

 44. A recent income statement of Dragonwood Corporation reported the following data:

  

If the company desired to earn a target profit of $1,270,000, it would have to sell: 
A. 5,778 units.
B. 8,600 units.
C. 10,160 units.
D. 11,908 units.
E. an amount other than those above.

 

Question:

 

45. Yellow Dot, Inc. sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales level would Yellow Dot have to achieve to earn a target profit of $240,000? 
A. $400,000.
B. $500,000.
C. $600,000.
D. $750,000.
E. $900,000.

 


Question:

 

 Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units.

 

 

 

46. Narchie: 
A. will break-even by selling 8,000 units.
B. will break-even by selling 13,333 units.
C. will break-even by selling 20,000 units.
D. will break-even by selling 1,000,000 units.
E. cannot break-even because it loses money on every unit sold.

 

 

 

Question:

 

 47. Each unit that Narchie sells will: 
A. increase profit by $20.
B. increase profit by $30.
C. increase profit by $50.
D. increase profit by some other amount.
E. decrease profit by $5.

 

 

 

 

 

Question:

 

 

 

 48. In order to produce a target profit of $22,000, Narchie’s dollar sales must total: 
A. $8,440.
B. $21,100.
C. $1,000,000.
D. $1,055,000.
E. an amount other than those above.

 

 

 

Question:

 

 

 

49. If Narchie sells 24,000 units, its safety margin will be: 
A. $200,000.
B. $400,000.
C. $1,000,000.
D. $1,200,000.
E. an amount other than those above.

 

 

 

Question:

 

 50. The difference between budgeted sales revenue and break-even sales revenue is the: 
A. contribution margin.
B. contribution-margin ratio.
C. safety margin.
D. target net profit.
E. operating leverage.

 

 

 

Question:

 

51. Maxine’s budget for the upcoming year revealed the following figures:

  

If the company’s break-even sales total $750,000, Maxine’s safety margin would be: 
A. $(90,000).
B. $90,000.
C. $246,000.
D. $336,000.
E. $696,000.

 

Question:

 

 

 

 52. Brooklyn sells a single product to wholesalers. The company’s budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. Brooklyn’s safety margin in units is: 
A. (13,400).
B. 0.
C. 1,600.
D. 13,600.
E. an amount other than those above.

 

 

 

Question:

 

53. Brooklyn sells a single product to wholesalers. The company’s budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn’s unit sales are 200 units less than anticipated, its breakeven point will: 
A. increase by $12 per unit sold.
B. decrease by $12 per unit sold.
C. increase by $8 per unit sold.
D. decrease by $8 per unit sold.
E. not change.

 

 

 

Question:

 

54. Brooklyn sells a single product to wholesalers. The company’s budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn’s unit sales are 300 units more than anticipated, its break-even point will: 
A. increase by $12 per unit sold.
B. decrease by $12 per unit sold.
C. increase by $8 per unit sold.
D. decrease by $8 per unit sold.
E. not change.

 

 

 

 

 

Question:

 

 

 

56. Danielle sells a single product at $20 per unit. The firm’s most recent income statement revealed unit sales of 100,000, variable costs of $800,000, and fixed costs of $400,000. If a $4 drop in selling price will boost unit sales volume by 20%, the company will experience: 
A. no change in profit because a 20% drop in sales price is balanced by a 20% increase in volume.
B. an $80,000 drop in profit.
C. a $240,000 drop in profit.
D. a $400,000 drop in profit.
E. a change in profit other than those above.

 

 

 

Question:

 

 

 

60. O’Dale sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows.

  

The company’s weighted-average unit contribution margin is: 
A. $3.00.
B. $3.55.
C. $4.00.
D. $19.35.
E. an amount other than those above.

 

Answer:

 


Question:

 

 Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows:

  

Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000.

 

 62. The weighted-average unit contribution margin is: 
A. $4.80.
B. $9.00.
C. $9.25.
D. $17.00.
E. an amount other than those above.

 


Question:

 

 

 

63. Assuming that the sales mix remains constant, the total number of units that Jamal must sell to break even is: 
A. 2,432.
B. 2,647.
C. 4,737.
D. 5,000.
E. an amount other than those above.

 

 

 

Question:

 

64. Assuming that the sales mix remains constant, the number of units of Plain that Jamal must sell to break even is: 
A. 2,000.
B. 3,000.
C. 3,375.
D. 5,000.
E. 5,625.

 

Question:

 

65. Assuming that the sales mix remains constant, the number of units of Fancy that Jamal must sell to break even is: 
A. 2,000.
B. 3,000.
C. 3,375.
D. 5,000.
E. 5,625.

 

 

 

Question:

 

 77. The following information relates to Dazie Company:

  

Dazie’s operating leverage factor is closest to: 
A. 0.067.
B. 0.167.
C. 0.400.
D. 2.500.
E. 6.000.

 

 

 

 

 

Question:

 

 

 

78. The following information relates to Paternus Company:

  

If a manager at Paternus desired to determine the percentage impact on income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by: 
A. 0.25.
B. 0.40.
C. 2.50.
D. 4.00.
E. 10.00.

 

Question:

 

 Edmonco Company produced and sold 45,000 units of a single product last year, with the following results:

  

 

Answer:

 

79. Edmonco’s operating leverage factor was: 
A. 4.
B. 5.
C. 6.
D. 7.
E. 8.

 

Question:

 

80. If Edmonco’s sales revenues increase 15%, what will be the percentage increase in income before income taxes? 
A. 15%.
B. 45%.
C. 60%.
D. 75%.
E. An amount other than those above.

 

Question:

 

83. A company, subject to a 40% tax rate, desires to earn $500,000 of after-tax income. How much should the firm add to fixed costs when figuring the sales revenues necessary to produce this income level? 
A. $200,000.
B. $300,000.
C. $500,000.
D. $833,333.
E. $1,250,000.

 

Question:

 

 84. Barrey, Inc. is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units:

  

How many units must Barrey sell to earn an after-tax profit of $180,000? 
A. 42,000.
B. 45,000.
C. 51,000.
D. 61,000.
E. An amount other than those above.

 

Question:

 

85. Barrey, Inc. is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units:

  

How many units must Barrey sell to earn an after-tax profit of $225,000? 
A. 67,250.
B. 62,250.
C. 61,000.
D. 51,000.
E. An amount other than those above

 

 

 

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July 1, 2023
    

 

 

91. Accompanying the bank statement was a debit memo for bank service charges.  On the bank reconciliation, the item is  
A. a deduction from the balance per company's records
B. an addition to the balance per bank statement
C. a deduction from the balance per bank statement
D. an addition to the balance per company's records

 

92. Accompanying the bank statement was a debit memo for bank service charges.  What entry is required in the company's accounts? 
A. debit Miscellaneous Administrative Expense; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Payable
D. debit Accounts Payable; credit Cash

 

93. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695.  This item would be included in the bank reconciliation as a(n)  
A. deduction from the balance per the company's records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. addition to the balance per the company's records

 

94. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts? 
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash

 

95. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  This item would be included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

96. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  What entry is required in the company's accounts? 
A. debit Sales; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Sales
D. debit Accounts Receivable; credit Cash

 

97. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.  This item is a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

98. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer.  What entry is required in the company's accounts? 
A. debit Notes Receivable; credit Cash
B. debit Cash; credit Miscellaneous Income
C. debit Cash; credit Notes Receivable
D. debit Accounts Receivable; credit Cash

 

99. The amount of deposits in transit is included on the bank reconciliation as a(n)  
A. deduction from the balance per the company's books
B. deduction from the balance per bank statement
C. addition to the balance per bank statement
D. addition to the balance per company books

 

100. The amount of the outstanding checks is included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

 

default image
July 1, 2023
    

 

 

91. Accompanying the bank statement was a debit memo for bank service charges.  On the bank reconciliation, the item is  
A. a deduction from the balance per company's records
B. an addition to the balance per bank statement
C. a deduction from the balance per bank statement
D. an addition to the balance per company's records

 

92. Accompanying the bank statement was a debit memo for bank service charges.  What entry is required in the company's accounts? 
A. debit Miscellaneous Administrative Expense; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Payable
D. debit Accounts Payable; credit Cash

 

93. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695.  This item would be included in the bank reconciliation as a(n)  
A. deduction from the balance per the company's records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. addition to the balance per the company's records

 

94. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts? 
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash

 

95. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  This item would be included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

96. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  What entry is required in the company's accounts? 
A. debit Sales; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Sales
D. debit Accounts Receivable; credit Cash

 

97. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.  This item is a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

98. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer.  What entry is required in the company's accounts? 
A. debit Notes Receivable; credit Cash
B. debit Cash; credit Miscellaneous Income
C. debit Cash; credit Notes Receivable
D. debit Accounts Receivable; credit Cash

 

99. The amount of deposits in transit is included on the bank reconciliation as a(n)  
A. deduction from the balance per the company's books
B. deduction from the balance per bank statement
C. addition to the balance per bank statement
D. addition to the balance per company books

 

100. The amount of the outstanding checks is included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

 

default image
July 1, 2023
    

 

 

91. Accompanying the bank statement was a debit memo for bank service charges.  On the bank reconciliation, the item is  
A. a deduction from the balance per company's records
B. an addition to the balance per bank statement
C. a deduction from the balance per bank statement
D. an addition to the balance per company's records

 

92. Accompanying the bank statement was a debit memo for bank service charges.  What entry is required in the company's accounts? 
A. debit Miscellaneous Administrative Expense; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Payable
D. debit Accounts Payable; credit Cash

 

93. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695.  This item would be included in the bank reconciliation as a(n)  
A. deduction from the balance per the company's records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. addition to the balance per the company's records

 

94. A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. What entry is required in the company's accounts? 
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash

 

95. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  This item would be included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

96. Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300.  What entry is required in the company's accounts? 
A. debit Sales; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Sales
D. debit Accounts Receivable; credit Cash

 

97. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company.  This item is a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

98. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer.  What entry is required in the company's accounts? 
A. debit Notes Receivable; credit Cash
B. debit Cash; credit Miscellaneous Income
C. debit Cash; credit Notes Receivable
D. debit Accounts Receivable; credit Cash

 

99. The amount of deposits in transit is included on the bank reconciliation as a(n)  
A. deduction from the balance per the company's books
B. deduction from the balance per bank statement
C. addition to the balance per bank statement
D. addition to the balance per company books

 

100. The amount of the outstanding checks is included on the bank reconciliation as a(n)  
A. deduction from the balance per company's records
B. addition to the balance per bank statement
C. deduction from the balance per bank statement
D. addition to the balance per company's records

 

 

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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.

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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!

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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.

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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!

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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.

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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.

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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.

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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!

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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!

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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.

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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.

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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.

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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!

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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!

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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!

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

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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.

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

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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.

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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
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  • Unlimited revisions
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  • Money-back guarantee
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  • Part-by-part delivery
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  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

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That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

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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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