96.When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for all but which of the following?    A.Gains and losses from nonoperating items. B.Revenues and expenses that did not provide or use cash. C.Changes in noncurrent assets and noncurrent liabilities. D.Changes in current liabilities related to operating activities. E.Depreciation and amortization expense. […]

  Multiple Choice Questions  26.Which of the following statements is not correct?    A. In accounting, the term “cash” includes checks, money orders, and funds on deposit in a bank as well as currency and coins.   B. The cash register proof is used to enter the cash sales and sales tax in the cash receipts journal.   C. The entry to record the receipt of a promissory note […]

  81. The Marx Company issued $100,000 of 12% bonds on April 1, 2010 at face value. The bonds pay interest semiannually on January 1 and July 1.  The bonds are dated January 1, 2010, and mature on January 1, 2014.  The total interest expense related to these bonds for the year ended December 31, 2010 is   A. $1,000 B. $3,000 C. $9,000 D. 12,000 82. On January 1, 2010, […]

    161. Firms sometimes invest in the common stock of other entities in order to exert significant influence or control over the other entity. U.S. GAAP and IFRS assume that firms owning more than ______ can exert control, unless other information indicates the contrary. A. 20%B. 30%C. 40%D. 50%E. 60%   162. A firm that can exert significant influence over another entity accounts for its intercorporate investment using the A. lower of cost or […]

  Objective 3.3   1) Stephanie’s Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000.  How many dresses must the Bridal Shoppe sell to yield after-tax net income of $18,000, assuming the tax rate is 40%? A) 200 dresses B) 170 dresses C) 150 dresses D) 145 dresses 2) Zeta Corp’s […]

  88. A debit is used to record which of the following: A. A decrease in an asset account.B. A decrease in an expense account.C. An increase in a revenue account.D. An increase in acontributed capital account.E. An increase in the dividends account. 89. A credit entry: A. Increases asset and expense accounts, and decreases liability,stockholders’ equity, and revenue accounts.B. Is always a decrease in an account.C. Decreases asset and expense accounts, and increases liability, stockholders’ equity, […]

    61.Refer to the information above. What are total assets of Hunter Products at the end of May?    A.$913,000.   B.$790,000.   C.$853,000.   D.$916,000. $390,000 + $400,000 + $63,000 = $853,000       62.Refer to the information above. What is the total of Hunter Products’ liabilities at the end of May?    A.$253,000.   B.$190,000.   C.$63,000.   D.$313,000. $250,000 – $60,000 + […]

  31.Which of the following debits and credits describes the payment of interest and principal on a loan? a. Debit an asset and credit a liability b. Debit an asset, debit an expense, and debit a liability c. Credit an asset, debit an expense, and debit a liability d. Credit an asset and debit a liability 32.Favre Company paid for insurance in advance. Which transaction […]

  71. The cash records and the bank statement of Frankel Company showed the following at the end of February 2010: Outstanding checks as of the beginning of February 2010, $8,000; checks written by Frankel Company according to their books during February 2010, $50,000; and checks cleared by the bank during February 2010, $54,000. How much were the outstanding checks at the end of February 2010?  […]

  81) Andrew Pallet Co., Inc. manufactures pallets for various manufacturing companies. Each new employee takes 10 hours to make the first pallet and 8 hours to make the second. The manufacturing overhead charge per hour is $80.   Required:   a.What is the learning curve percentage assuming the cumulative average method? b.What is the time needed to build 8 pallets by a new employee […]