External link to Question : 130. The sales, all account, of Clayton Company in Year 5, : 1245995

Question : 130. The sales, all account, of Clayton Company in Year 5, : 1245995

  130. The sales, all on account, of Clayton Company in Year 5, its first year of operations, were $700,000. Collections totaled $500,000. On December 31, Year 5, Clayton Company estimated that 2 percent of all sales would probably be uncollectible. On that date, Clayton Company wrote off specific accounts in the amount of $6,000.Clayton Company’s unadjusted trial balance (after all nonadjusting entries were made and […]

External link to Question : 131. A firm desires to increase its ratio of cash flow : 1230591

Question : 131. A firm desires to increase its ratio of cash flow : 1230591

    131. A firm desires to increase its ratio of cash flow from operations divided by average current liabilities from its anticipated level of 30 percent for the coming year to a more desirable level of 40 percent. Which of the following actions is consistent with this increase?  A. increase short-term bank borrowing B. decrease the number of days that accounts receivable are outstanding C. decrease the number […]

External link to Question : 128. Happiness Catering has total assets of $385 million. Its total : 1257784

Question : 128. Happiness Catering has total assets of $385 million. Its total : 1257784

  128. Happiness Catering has total assets of $385 million. Its total liabilities are $100 million and its equity is $285 million. Calculate its debt ratio.  A. 35.1%. B. 26.0%. C. 38.5%. D. 28.5%. E. 58.8%. 129. All of the following statements accurately describe the debt ratioexcept. A. It is of use to both internal and external users of accounting information. B. A relatively high ratio is always desirable. C. The dividing line for a […]

External link to Question : 41) Managers and accountants collect most of the cost information : 1196236

Question : 41) Managers and accountants collect most of the cost information : 1196236

  41) Managers and accountants collect most of the cost information that goes into their systems through 41) ______ A) an information databank. B) time surveys. C) source documents. D) computer programs. E) interviewing workers. 42) A machine shop has direct materials cost of $1,800,000 direct labour of $4,200,000 (direct labour rate is $50 per hour) and budgeted indirect manufacturing costs of $850,000. Management believes […]

External link to Question : 141.Alpha Company has assets of $600,000, liabilities of $250,000, and : 1258291

Question : 141.Alpha Company has assets of $600,000, liabilities of $250,000, and : 1258291

    141.Alpha Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?    A.Assets increase by $75,000 and expenses increase by $75,000.   B.Assets increase by $75,000 and expenses decrease by $75,000.   C.Liabilities increase by $75,000 and expenses decrease by $75,000.   […]

External link to Question : 21. Which of the following is/are true? A. The more long-term debt : 1245689

Question : 21. Which of the following is/are true? A. The more long-term debt : 1245689

    21. Which of the following is/are true?   A. The more long-term debt in a firm’s capital structure, the less the risk that the firm will experience difficulty making the required payments when due. B. The more long-term debt in a firm’s capital structure, the less is the risk of default or bankruptcy. C. Financial analysts use the long-term debt ratio to assess risk related to long-term […]

External link to Question : 101. Which of the following is/are true? A. Under U.S. GAAP, firms must : 1230452

Question : 101. Which of the following is/are true? A. Under U.S. GAAP, firms must : 1230452

    101. Which of the following is/are true? A. Under U.S. GAAP, firms  must test property, plant, and equipment for possible asset impairment when conditions indicate that a significant decrease in fair value has occurred. B. Under U.S. GAAP, firms initially compare the undiscounted cash flows expected from the asset to the asset’s carrying value. C. Under U.S. GAAP, a fixed asset impairment occurs when the asset’s carrying value […]

External link to Question : 95. Retained Earnings: a. Has a normal debit balance. b. Decreases stockholders’ : 1255727

Question : 95. Retained Earnings: a. Has a normal debit balance. b. Decreases stockholders’ : 1255727

  95. Retained Earnings: a. Has a normal debit balance. b. Decreases stockholders’ equity. c. Is equal to the balance in cash. d. Increases stockholders’ equity.     96. Journal entries to record cash dividends are made on the: a. Declaration date, record date, and payment date. b. Record date and payment date. c. Delaration date and payment date. d. Delaration date and record date. […]

External link to Question : Multiple Choice Questions 27.The principal difference between managerial accounting and financial : 1259566

Question : Multiple Choice Questions 27.The principal difference between managerial accounting and financial : 1259566

  Multiple Choice Questions  27.The principal difference between managerial accounting and financial accounting is that managerial accounting information is:    A. Prepared by managers.   B. Intended primarily for use by decision makers inside the business organization.   C. Prepared in accordance with a set of accounting principles developed by the Institute of Certified Managerial Accountants.   D. Oriented toward measuring solvency rather than profitability.         28.Management […]

External link to Question : 51. The market value for inventory valuation purposes generally means A. replacement : 1230666

Question : 51. The market value for inventory valuation purposes generally means A. replacement : 1230666

    51. The market value for inventory valuation purposes generally means   A. replacement cost B. sellers bid price C. buyers offer price D. the mean between the sellers bid price and the buyers offer price E. present value of future cash flows   52. Which of the following is true regarding the remeasurement of inventories upward to an amount exceeding their acquisition cost?  A. Acquisition cost leads to a more conservative […]

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