61) If Pope, Inc. uses standard costing, the overhead allocated to work in process 61) ______ A) decreases Manufacturing Overhead Allocated and decreases Work in Process B) increases Work in Process and increases Manufacturing Overhead Allocated. C) increases Manufacturing Overhead Allocated and decreases Manufacturing Overhead Control. D) increases Manufacturing Overhead Control and increases Manufacturing Overhead Allocated. E) increases Manufacturing Overhead Allocated and decreases Work […]

    91. Which of the following are limitations of ratio analysis?  A. use of acquisition cost for assets rather than current replacement cost or net realizable value B. latitude firms have in selecting from among various generally accepted accounting principles C. changes in many ratios correlate with each other D. must recognize conditions that have changed between the periods being compared when comparing the size of a ratio between […]

    91. The Footwear Department of Lee’s Department Store had sales of $188,000, cost of goods sold of $132,500, indirect expenses of $13,250, and direct expenses of $27,500 for the current period. The Footwear Department’s contribution to overhead as a percent of sales is:A.  7.8%B.  14.9%C.  29.5%D.  66.7%E.  85.4%     Reference: 22_06 Mach Co. operates three manufacturing departments as profit centers. The following […]

    41) On December 31, IOU Corporation issued $100,000 of 10-year, 8% bonds at 98. The bonds pay interest annually on December 31. These bonds sold at ________. A) a premium B) a discount C) par D) The answer cannot be determined from the information given.   42) On December 31, IOU Corporation issued $100,000 of 10-year, 8% bonds at 98. The bonds pay […]

    91.At the beginning of the current year, Elite Corporation had 200,000 shares of $1 par common stock outstanding and had retained earnings of $4,800,000. During the year, the company earned $1,675,000, declared a 10% stock dividend when the price of stock was $28 per share, and paid a year-end cash dividend of $3 per share. (The cash dividend was paid after the stock […]

  31) The Income Summary account shows debits of $29,000 and credits of $20,000. This results in a: A) net income of $49,000. B) net loss of $49,000. C) net income of $9,000. D) net loss of $9,000. 32) After closing the revenue, expense, and withdrawal accounts, the capital increased by $2,000. Which of the following situations could have occurred? A) The company had a […]

  97) Identify the effects of each of the following items on the accounting equation. Show the correct dollar amount. Account titles are not required. The first entry has been done for you. a.Prepaid rent used up, $400 b.Only $500 remains unearned of the $3,500 recognized as unearned revenue at the beginning of the period c.Of the $700 in office supplies on hand at the […]

    51. The compensation program that least requires a participatory management style is  A. gainsharing plan. B. incentive pay. C. ESOPs. D. profit sharing. Under incentive pay programs, the management must exercise greater control over the employee.     52. Which one of the following pay programs has the greatest frequency of payout?  A. Merit pay B. Profit sharing C. Incentive pay D. Gainsharing Incentives have a weekly payout. Merit pay and profit sharing […]

  88.On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts: Transactions 1. Shawn Dahl invested $45,000 in cash to open the business 2. Paid $12,700 in cash for the purchase of kayak and canoe equipment 3. Paid $1,050 in cash for rent expense 4. Purchased additional […]

  51.Sunrise Designs maintains a credit line with Ohio River Bank that allows the company to borrow up to $1 million.  A covenant associated with the loan contract limits the company’s dividends in any one year.  The 2010 income statement data for the company is as follows:   Net sales $840,000 Less: Cost of goods sold 500,000 Gross profit $340,000 Selling and administrative expenses 120,000 […]