Multiple Choice Questions   140. Joseph Jewelers purchased display shelves on March 1 for $36,000. If this asset has an estimated useful life of five years, what is the book value of the display shelves on April 30?  A. $600. B. $34,800. C. $33,600. D. $900.     141. The adjusting entry to recognize an unrecorded expense is necessary:  A. When an expense is paid in advance. B. When an expense has […]

  10) Required: Put an X in the appropriate box to indicate the proper accounting treatment for each of the following payments:   Payment Expense Capitalize Neither Paid $6,700 cash for routine repairs designed to maintain the operating efficiency of an asset       Paid $23,000 to a creditor to satisfy a debt       Paid $9,000 to put a new roof on […]

  101) Darla’s Cookie Emporium borrowed money by issuing $200,000 of bonds at 96 on January 1. The bonds pay interest on January 1 and July 1. The stated rate of interest is 5% and the bonds mature in 10 years. Any discount or premium is amortized using the straight-line method. Journalize the entries to record the: 1.issuance of the bonds 2.interest paid on the […]

    41. Which of the following forms of validation becomes relatively more attractive as the sample available for validation becomes smaller?  A. Predictive criterion-related B. Concurrent criterion-related C. Content validation D. Face validation Content Validation — A test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job.   […]

    116. A company’s cash balance is reported in which two financial statements? a. Income statement and statement of cash flows. b. Balance sheet and statement of cash flows. c. Income statement and balance sheet. d. Balance sheet and statement of stockholders’ equity.     117. The statement of cash flows reports cash flows from the activities of: a. Operating, purchasing, and investing. b. […]

    71. The principle prescribing that financial statements reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:  A. Going-concern principle B. Business entity principle C. Objectivity principle D. Cost principle E. Monetary unit principle     72. A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by […]

    77. One advantage of issuing bonds instead of stock is that:  A. Interest is tax deductible, whereas dividends are not. B. Bonds have a longer maturity date. C. Interest rates are lower than dividend rates. D. The issuance of bonds does not affect earnings per share.     78. Choose the statement that correctly summarizes the tax advantage of raising money by issuing bonds instead of common stock:  A. The […]

    51. Match each of the following terms with the phrase that most closely describes it.  Each answer may be used only once.  1. Expenses of the current period.       Activity based costing    ____  2. Typically used by companies whose products are indistinguishable from each other.       Period costs    ____  3. Applied overhead is more than actual overhead incurred.       Overapplied overhead    ____  4. Applied overhead is less than actual overhead incurred.  […]

    61. Present Value of 1  Periods 3% 4% 5% 6% 7% 8% 9% 10% 12% 3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7118 4 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6355 5 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 6 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 7 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 […]

    41. In business decision-making, managers typically examine the two fundamental factors of:A.  Risk and capital investment.B.  Risk and rate of return.C.  Capital investment and rate of return.D.  Risk and payback.E.  Payback and rate of return.     42. For purposes of applying the net present value and the internal rate of return methods, the rate chosen to measure the time adjusted value of […]