Learning Objective 6-6   1) On January 1, 2011, Fred McGriff Company bought office computers that cost $43,000, with an estimated useful life of 10 years and an estimated salvage value of $3,000. The company uses the straight-line method of depreciation and has a calendar yearend. For the year ended December 31, 2011, McGriff Company will report depreciation expense of ________ on the ________. […]

Multiple Choice Questions  1.Ashley Bradshaw is the manager of one department in a large store. In this capacity, which of the following kinds of information would she be interested in?    A. Economic data.   B. Financial data   C. Nonfinancial data.   D. Both Financial data and Nonfinancial data.     2.All of the following are features of managerial accounting except:    A. information is provided primarily to insiders such as […]

  21. Ordinarily, the proceeds from the sale of a bond issue will be equal to:  A. The face amount of the bond. B. The total of the face amount plus all interest payments. C. The present value of the face amount plus the present value of the stream of interest payments. D. The face amount of the bond plus the present value of the stream of interest payments. 22. Bonds […]

    131. The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities. In the United States, which phase best describes:        Biotechnology firms             Consumer foods companies         Steel manufacturers A.              growth                                         mature                                      decline B.              mature                                         decline                                      growthC.              growth                                         growth                                      declineD.              growth                                         growth                                       matureE.              decline                                         mature                                       growth                                        132. The extent to which a firm adjusts net […]

  91.Which of the following is true regarding component units? A)Component units could include towns, school districts, counties, and municipalities. B)Component units may be reported discretely in the government-wide statements or may be blended as a fund in the fund financial statements (and thus also included in the government-wide financial statements). C)Both of the above. D)Neither of the above. 92.Which of the following is true […]

  14.2   Learning Objective 14-2 1) For the payee, being given additional time to settle an account with issuance of a note results in a shift of: A) assets from Notes Receivable to Accounts Receivable. B) assets from Accounts Receivable to Notes Receivable. C) liabilities from Notes Payable to Accounts Payable. D) liabilities from Accounts Payable to Notes Payable. 2) When an interest-bearing note comes […]

  81. In general, consolidated financial statements should be prepared   A. when a corporation owns more than 20% of the common stock of another company B. when a corporation owns more than 50% of the common stock of another company C. only when a corporation owns 100% of the common stock of another company D. whenever the market value of the stock investment is significantly lower than its cost […]

  227.The unadjusted trial balance and the adjustment data for Porter Business Institute are shown below along with adjusting entry information. What is the impact of the adjusting entries on the balance sheet? Show the calculation for total assets, total liabilities, and owner’s equity without the adjustments; show the calculation for total assets, total liabilities, and owner’s equity with the adjustments. Which one provides the […]

  16) JKL Company had the following shareholders’ equity section at December 31, 2011:   Preferred stock, $100 par, 8% cumulative $1,250,000 Common stock, $2 par value 800,000 Paid-in capital in excess of par, common stock 3,500,000 Retained earnings 3,167,000 Treasury stock (25,000 shares at cost) (300,000) Total $8,417,000   1. How many shares of preferred stock are outstanding?   2. What is the total […]

    55. On January 1, 2010, Framm Corporation issued 10,000 shares of its 10%, $20 par value cumulative preferred stock. No dividends were declared by Framm in 2010 or 2011. In 2012, Framm had a profitable year and was in a strong cash position, so it declared a dividend of $200,000. How much of this dividend was paid to Framm’s common stockholders?  A. $140,000 B. $160,000 C. $180,000 […]