86. A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000.  The cash flow on total assets ratio equals: A. 83.9% B. 542.5% C. 15.5% D. 18.4% E. 646.9%   87. A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total […]

    121. Triple Company’s accountant made an entry that included the following items: debit postage expense $12.42, debit office supplies expense $27.33, credit cash over/short $2.19. If the original amount in petty cash is $320, how much is in petty cash before the reimbursement?   A. $320.00 B. $282.44 C. $37.56 D. $39.75 E. $41.94     122. Triple Company’s accountant made an entry that included the following items: debit postage […]

    35. Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, a credit or credits are made to:  A. Common Stock $16,000. B. Common Stock $10,000 and Additional Paid-in Capital $6,000. C. Common Stock $6,000 and Additional Paid-in Capital $10,000. D. Common Stock $10,000 and Retained Earnings $6,000.   36. A corporation issues 1,500 shares of common stock for […]

  1) The document issued by a seller for a credit to a customer’s Accounts Receivable is the Debit Memo 2) Transactions entered in the general journal are posted to the general ledger, not the subsidiary ledgers.   3) Landon Company sold a piece of land for $60,000, accepting a 10-year note receivable in that amount. Assuming the use of special journals, this entry would […]

Question Ellen is an auditor working on a single audit of a program for underprivileged children. During the audit, she finds several cashed checks in large amounts made out to the program controller without supporting documentation. What should Ellen do? Select one: a. Contact the IRS. b. Find as many similar checks as she can. c. Confront the controller. d. Hand the inquiry over to […]

  121. A corporation issued 6,000 shares of its $10 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:  A. A debit to Common Stock for $60,000. B. A debit to Land for $60,000. C. A credit to Land for $60,000. D. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $24,000. […]

    181. Variable costing is useful to managers for all but the following: A. cost controlB. product pricingC. reporting to the public in certified financial statementsD. production planning   182. The Harold Corporation just started business in January of 2010. They had no beginning inventories. During 2010 they manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per […]

  88.Lisa informed her church that she had named the church in her will and later provided a written copy of the will to the church. At what point should the church record the contribution? A)At the time when the church was informed of her will. B)At the time the church receives a written copy of the will. C)At Lisa’s death. D)At the date the […]

  131. Carmel Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined?  A. Debit Depletion Expense $1,233,100; credit Accumulated Depletion $1,233,100. […]

    61. Accountants sometimes refer to the equity method as a one-line consolidation because   A. the revenues less the expenses of the subsidiary appear in the one account, Equity in Earnings of Subsidiary. B. the assets and liabilities of the subsidiary appear on one line, Investment in Subsidiary. C. the application of the equity method therefore rests on the guiding principle to treat the items in such […]