132.Kent Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the revised break-even point in dollars with the purchase of the new machine.     A. $500,000. B. $440,678. C. $521,923. D. $480,000. […]

  31) The capital budgeting stage in which the project is placed in motion and performance is monitored is called the 31) ______ A) implementation and control stage. B) financing stage. C) selection stage. D) information-acquisition stage. E) none of the above 32) The return that is expected by the organization is known as all of the following EXCEPT 32) ______ A) cost of capital. […]

  11.One of Tonic Corp’s employees invented a revolutionary coffee lid that cools coffee as you drink it in order to prevent burns. Two children ordered coffee and burned their mouths after failing to properly secure the lids. The children’s parents sued. TonicCorp’s. lawyers believe that it is highly probable that judgment will be rendered against TonicCorp and it is likely a payment in excess […]

    101. U.S. GAAP requires the classification of  A. the receipt of cash from interest and dividend revenues as an operating activity and cash related to the purchase and sale of long-term investments in securities as an investing activity B. both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of investments in securities as an investing activity C. both receipt […]

    121. Based on the following data for the current year, what is the number of days’ sales in inventory?  Net sales on account during year $1,204,500 Cost of merchandise sold during year 657,000 Accounts receivable, beginning of year 75,000 Accounts receivable, end of year 85,000 Inventory, beginning of year 81,600 Inventory, end of year 98,600      A. 50.1B. 45.3C. 24.7D. 29.9   122. Which of the following ratios […]

    131. When goods are shipped FOB destination and the seller pays the freight charges, the buyer  A. journalizes a reduction for the cost of the merchandise. B. journalizes a reimbursement to the seller. C. does not take a discount. D. makes no journal entry for the freight.   132. Anthony Company sold Madison Company merchandise on account FOB shipping point, 2/10, net 30, for $20,000. Anthony prepaid the $300 shipping […]

    91. Products that are in the process of being manufactured but are not yet complete are called:A.  Raw materials inventory.B.  Conversion costs.C.  Cost of goods sold.D.  Goods in process inventory.E.  Finished goods inventory.     92. Another title for goods in process inventory is:A.  Indirect materials inventory.B.  Work in process inventory.C.  Conversion costs.D.  Direct materials inventory.E.  Raw materials inventory.     93. Days’ […]

1. According to the Sarbanes-Oxley Act of 2002, who is primarily responsible for establishing and maintaining a system of internal control over the company’s financial reporting?  A. Management of the company B. The company’s auditors C. The company’s internal auditors D. The audit committee of the company’s board of directors   2. Which of the following is not a requirement of the Sarbanes-Oxley Act?  A. Internal audit outsourcing can no longer be […]

  76.The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:    A.Operating activities. B.Financing activities. C.Investing activities. D.Schedule of noncash investing or financing activity. E.Reconciliation of cash balance. 77.The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:    A.Operating activities. […]

  155. Climbers Unlimited uses special journals to record its daily transactions. They use the perpetual inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the cash receipts journal to the appropriate ledger accounts.   Date   AccountCredited Explanation PR Cash Debit SalesDisc Debit Accts.Rec.Credit SalesCredit Other Accts.Credit COGS Dr.Inv. Cr. July 4 Bale Co. Invoice 303   3,200 34 3,234 […]