122.Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, paid in cash, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel’s beginning and ending Work […]

    111. Which of the following accounts will not be closed to Income Summary at the end of the fiscal year? A. Salaries ExpenseB. Fees EarnedC. Unearned RentD. Depreciation Expense   112. Which of the following accounts will be closed to the retained earnings account at the end of the fiscal year? A. Rent ExpenseB. Fees EarnedC. Income SummaryD. Depreciation Expense   113. The entry to close the appropriate insurance account at the end of the accounting […]

  51. Mickey & Co. expects overhead costs of $30,000 per month and direct production costs of $12 per unit. The estimated production activity for the 2012 accounting period is as follows:    The predetermined overhead rate based on units produced is (rounded to the nearest penny) is:  A. $0.75 per unit. B. $9.00 per unit. C. $1.33 per unit. D. $21.00 per unit. 52. GJG Company paid its annual property […]

  61. Department S had no work in process at the beginning of the period. 12,000 units of direct materials were added during the period at a cost of $84,000, 9,000 units were completed during the period, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor […]

    41.Which of the following forms of validation becomes relatively more attractive as the sample available for validation becomes smaller?    A.Predictive validation   B.Concurrent validation   C.Content validation   D.External validation   E.Criterion-related validation     42.Content validation:    A.seeks to establish an empirical relationship between test scores taken prior to being hired and eventual performance on the job.   B.refers to the degree to […]

    51.The price-earnings ratio is the:    A. Book value of a share of common stock divided by EPS.   B. Market price of a share of common stock divided by EPS.   C. Par value of a share of common stock divided by EPS.   D. Market price divided by book value of a share of stock.         52.In computing earnings per share, the number […]

  11. Which financial statement would you analyze to determine its operating performance for the past year?  A. Balance sheet B. Statement of retained earnings C. Income statement D. Statement of cash flows 12. Doughtry’s Pet Shop reported a net loss of $1,500,000 and total expenses of $2,900,000. How much were the total sales?  A. $4,400,000 B. $1,400,000 C. $2,900,000 D. $1,500,000 13. The income statement shows:  A. how much profit the company has earned since it […]

  110.When preparing the Statement of Cash Flows for the Proprietary Funds, cash flows from noncapital financing activities include all of the following EXCEPT: A)  Receipts from customers. B)  Proceeds and repayment of debt not clearly related to capital outlay. C)  Grants received from and paid to other governments for noncapital purposes. D)  Transfers to and from other funds. 111.The two types of proprietary funds […]

    201. Landau CorporationExcerpts from the Statement of Financial Position for Landau Corporation as of September 30, Year 5, are presented below.  Cash $   950,000 Accounts receivable (net) 1,675,000 Inventories   2,806,000 Total current assets $5,431,000       Accounts payable $1,004,000 Accrued liabilities      785,000 Total current liabilities $1,789,000     The Board of directors of Landau Corporation met on October 4, Year 5, and declared regular […]

    121. The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is  A. debit Salary Expense; credit CashB. debit Pension Expense; credit Unfunded Pension LiabilityC. debit Pension Expense; credit Unfunded Pension Liability and CashD. debit Pension Expense; credit Cash   122. The journal entry a company uses to record partially funded pension rights for its salaried employees, […]