81. Which of the following statements is correct using the direct costing concept? A. All manufacturing costs are included in the calculation of cost of goods manufacturedB. Only fixed costs are included in the calculation of cost of goods manufactured while variable costs are considered period costs.C. Only variable manufacturing costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs.D. All manufacturing […]

    51. Two methods of accounting for uncollectible accounts are the  A. direct write-off method and the allowance method. B. allowance method and the accrual method. C. allowance method and the net realizable method. D. direct write-off method and the accrual method.   52. If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer’s account as uncollectible?  […]

  179. On December 31, 2012, a company forgot to record $7,000 of depreciation on office equipment.  What would be the effect on the assets, net income, and equity when it comes to the 2012financial statements?     180. Given the table below, indicate the impact of the following errors made during the adjusting entry process. Use a “+” followed by the amount for overstatements, a “-” […]

    97. Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the accumulateddepreciationat the end of the secondyear of its useful life using the double-declining-balance method?  A. $2,176. B. $  544. C. $1,200. D. $600. E. $1,224.       98. Marlow Company purchased a point of sale system […]

  141. A company has $2,400,000 in stockholders’ equity, that includes 500 shares of $50 par value noncallable preferred stock outstanding and 250,000 shares of common stock outstanding. Calculate the book value per (1) preferred share and (2) common share.     142. A company reports the following stockholders’ equity:  Common stock, $10 par, 500,000 shares authorized $3,000,000 Contributed capital in excess of par, common stock 1,300,000 […]

  147. The following selected transactions were completed by Daniels Company during May:  1. Capital stock was issued for $55,000. 2. Paid creditors on account, $7,000. 3. Billed customers for services on account, $2,565. 4. Received cash from customers on account, $8,450. 5. Paid cash dividends, $2,500. 6. Received the utility bill, $160, to be paid next month.       Indicate the effect of each […]

    71. Goodwill is: a.  Amortized over the greater of its estimated life or forty years. b.  Only recorded by the seller of a business. c.  The value of a business as a whole, over and above the  value of its net identifiable assets. d.  Recorded when created internally through advertising expense.     72. In accounting, goodwill a. May be recorded whenever a […]

    35.An employee whose regular hourly rate is $9 and whose overtime rate is 1.5 times the regular rate worked 44 hours one week. The employee’s gross pay was    A. $378.   B. $396.   C. $414.   D. $594.       36.An employee whose regular hourly rate is $18 and whose overtime rate is 1.5 times the regular rate worked 44 hours one week. The employee’s […]

  51. At the beginning of 2012, Angel Corporation began offering a 1-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2012 were $180 million. Five percent of the units sold were returned in 2012 and repaired or replaced at a cost of $5.3 million. The amount of warranty expense on Angel’s […]

    78.The carrying value of a long-term note payable is computed as:    A.The future value of all remaining payments, using the market rate of interest.   B.The face value of the long-term note less the total of all future interest payments.   C.The present value of all remaining payments, discounted using the market rate of interest at the time of issuance.   D.The present […]