81. Which statement below is not a determinate in calculating the amount of federal income taxes withheld from an individuals pay?  A. filing status B. types of earnings C. gross pay D. number of exemptions   82. Which of the following would be used to compute the federal income taxes to be withheld from an employee’s earnings?  A. FICA tax rate B. wage and tax statement C. FUTA tax rate D. wage bracket […]

    136.All of the following statements related to current liabilities for U.S. GAAP and IFRS are true except:    A. The definitions and characteristics of current liabilities are broadly similar for both U.S. GAAP and IFRS.   B. The term provision is typically used under IRFS to refer to what is titled liability under U.S. GAAP.   C. Because tax regulatory systems of countries are different, the approach […]

  41. United Supply has a $5 million liability at December 31, 2012, of which $1 million is payable in each of the next five years. United Supply reports the liability on the balance sheet as:  A. a $5 million current liability. B. a $5 million long-term liability. C. a $1 million current liability and a $4 million long-term liability. D. a $4 million current liability and a $1 million […]

Multiple Choice Questions  1.Expressing plans for a business in financial terms is commonly called:    A. master planning.   B. budgeting.   C. strategic planning.   D. operational planning.     2.A company’s numerous specific budgets (sales, inventory purchases, etc.) together are referred to as the:    A. grand plan.   B. strategic plan.   C. current budget.   D. master budget.     3.Select the incorrect statement about budgeting committees.    A. Membership on the budgeting […]

  5) One major advantage of negotiated transfer pricing is that it can be done with little time or effort.   6) The Home Office Company makes all types of office desks. The Computer Desk Division is currently producing 10,000 desks per year with a capacity of 15,000. The variable costs assigned to each desk are $300 and annual fixed costs of the division are […]

  96.Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is:     A.$1,750. B.$145.83. C.$437.50. D.$19.44. E.$875.00. 97.Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper’s entry to record the collection of the note and interest at maturity should be:     A.Debit Cash for $25,000; credit Notes Receivable $25,000. […]

    110. A company sells garden hoses and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during September were as follows:   September 1:Beginning balance of 18 units at $13 each September 12:Purchased 30 units at $14 each September 19:Sold 24 units at $30 selling price each September 20:Purchased 24 units at $17 each […]

  91. When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is   A. declining-balance B. straight-line C. units-of-production D. MACRS 92. A machine with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by […]

  152. The balance in the unearned fees account, before adjustment at the end of the year, is $10,250.  Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,125.    Unearned Fees ($10,250 – $3,125) 7,125     Fees Earned   7,125               153. At the end of the current year, $3,700  […]

  131. Debtors are interested in the times-interest-earned ratio because they want to   A. know what rate of interest the corporation is paying B. have adequate protection against a potential drop in earnings jeopardizing their interest payments C. be sure their debt is backed by collateral D. know the tax effect of lending to a corporation 132. Any unamortized premium should be reported on the balance sheet of the issuing […]