146. The Little Company reported net income of $150,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:    End of Year Beginning of Year Cash $20,000 $15,000 Accounts receivable 19,000 32,000 Inventories 50,000 65,000 Accounts payable 12,000 18,000 […]

    71. A revenue transaction results in all of the following except:  A. An increase in assets. B. An increase in owners’ equity. C. A positive cash flow in either the past, present, or future. D. An increase in liabilities.   72. If a company has a profit:  A. Assets will be equal to liabilities plus owners’ equity. B. Assets will be less than liabilities plus owners’ equity. C. Assets will be greater […]

    51. Hugh Morris Company pays weekly wages of $10,000 every Friday for a five day week ending on that day. If the last day of the year is on Wednesday, the adjusting entry to record the accrued wages is:  A. debit Wages Expense $6,000; credit Cash $6,000 B. debit Wages Expense $4,000; credit Cash $4,000 C. debit Wages Expense $6,000; credit Wages Payable $6,000 D. debit Wages Expense […]

    91.Refer to the information above. Book value per share of common stock (rounded to the nearest penny) is:    A. $15.10.   B. $14.10.   C. $15.90.   D. $19.10. $1,200,000 + $600,000 – $60,000 – $48,000 = $1,692,000/120,000 = $14.10       92.Which of the following best describes the book value of a share of stock?    A. Net assets divided by the number of shares outstanding.   […]

  79.A controlling influence over the investee is based on the investor owning voting stock exceeding:    A.10%. B.20%. C.30%. D.40%. E.50%. 80.Long-term investments can not include:    A.Held-to-maturity debt securities. B.Securities with maturity dates within one operating cycle. C.Available-for-sale equity securities. D.Equity securities giving an investor significant influence over an investee. E.Available-for-sale debt securities. 81.Consolidated financial statements:    A.Show the results of operations, cash flows, and the […]

  101.  Activity Activity Cost Preventive maintenance $2,000 Warranty work    750 Product design  1,000 Prototype inspection    500 Emergency maintenance  1,250 Rework    750 Scrap processing    500 Processing returned products    750 Machine operator training  1,500 Process audits    500     From the above Schedule of Activity Cost, determine the nonvalue-added costs. A. $12,000B. $ 9,000C. $36,000D. $16,000 102.  Activity Activity Cost Preventive maintenance $2,000 Warranty work    750 Product design  1,000 Prototype inspection […]

  121. Estimated cash payments are planned reductions in cash from all of the following except:  A. manufacturing and operating expenses B. capital expenditures C. notes and accounts receivable collections D. payments for interest or dividends 122. Management accountants usually provide for a minimum cash balance in their cash budgets for which of the following reasons:  A. stockholders demand a minimum cash balance B. it is an important way of effectively managing cash […]

  61. In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is A. debit Cost of Merchandise Sold; credit SalesB. debit Cost of Merchandise Sold; credit Merchandise InventoryC. debit Merchandise Inventory; credit Cost of Merchandise SoldD. debit Accounts Receivable; credit Sales 62. The inventory system employing accounting records that continuously disclose the amount of inventory is called A. retailB. periodicC. physicalD. perpetual 63. The inventory data for […]

    91. In any given accounting period, the amount a firm reports as income before income taxes for financial reporting in comparison to the amount of taxable income that appears on its income tax return may differ due to temporary differences. The temporary differences may create a deferred tax asset due to A. providing for estimated warranty costs in the year a firm sells the warranted product […]

Multiple Choice Questions  1.Java Joe operates a chain of coffee shops. The company pays rent of $20,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The manager of each shop is paid a salary of $3,000 per month, and all other employees are paid on an hourly basis. Relative to the number of customers for a shop, the cost […]