86.A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000. The cash flow on total assets ratio equals:    A. 83.9% B. 542.5% C. 15.5% D. 18.4% E. 646.9% 87.A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on […]

86) Assets and liabilities for Stan’s Garage at the beginning and end of the current accounting period are as follows:   January 1December 31 Total assets$450,000$690,000 Total liabilities$325,000$440,000   a) Determine net income or net loss for the current year. The owner did not invest any additional assets during the year and made no withdrawals.   b) Determine net income or net loss for the […]

100.Use this inventory information for the month of May to answer the following question.     May 1   Beginning inventory 20 units @ $76     7   Purchase 70 units @ $80     18   Sale  25 units     22   Purchase 10 units @ $88     29   Sale  40 units   Assuming that a periodic inventory system is […]

  21.Ace Corporation has a debt to total assets ratio of 65%.  This tells the user of Ace’s financial statements a.Ace is getting a 35% return on its assets b.There is a risk Ace cannot pay its debts as they come due c.65% of the assets are financed by the stockholders d.Ace  should issue more debt  to reduce its risk 22. Trading on the equity […]

  111. A balance column ledger account is:  A. An account entered on the balance sheet.  An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted. C. Another name for the withdrawals account. D. An account used to record the transfers of assets from a business to its owner. E. A simple form of account […]

  33) The managers of the production department have decided to use the production levels of 2010 and 2012 as examples of the highest and lowest years of operating levels. Data for those years are as follows:   YearChemicals usedOverhead Costs 2010140,000 gallons$115,000 2012120,000 gallons$100,000   Required: Using the high-low method, determine the overhead cost equation for the department if gallons of chemicals are used […]

  131. If variable cost of goods sold totaled $90,000 for the year (18,000 units at $5 each) and the planned variable cost of goods sold totaled $88,000 (16,000 units at $5.50 each), the effect of the unit cost factor on the change in variable cost of goods sold is: A. $2,000 decreaseB. $2,000 increaseC. $11,000 increaseD. $9,000 decrease 132. The difference between the planned and actual contribution margin can be caused […]

  14) How much of the total costs will be assigned to Department A? A) $90,250 B) $90,650 C) $90,350 D) $90,750 Account inquiry costs= ($200,000 ÷ 10,000) × 2,500 = $50,000 Billing costs= ($140,000 ÷ 4,000,000) × 400,000 =  $14,000 Account verification costs= ($75,000 ÷ 40,000) × 10,000=  $18,750 Correspondence costs= ($25,000 ÷ 4,000)× 1,200=    $7,500 $90,250   15) How much of the total […]

1. Which of the following accounts would not be reported in the property, plant, and equipment section of a balance sheet? A. Accumulated depreciation–buildingsB. BuildingsC. Depreciation Expense–buildingsD. Land   2. Which of the following costs related to the purchase of production equipment incurred by ABC Company during 2011 would be considered a revenue expenditure? A. Installation costs for equipmentB. Purchase price of the equipment less the cash discountC. Repair and maintenance costs during the equipment’s first […]

    44.On April 1, 2016, a firm accepted a 3-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended May 31, 2016, is    A. $30.   B. $60.   C. $150.   D. $180.       45.With the accrual basis of accounting, it is appropriate to recognize revenue from a credit sale    A. on […]