41. On March 1, Wright Company purchased new equipment for $50,000 by paying cash. Other costs associated with the equipment were: transportation costs, $1,000; sales tax paid $3,000; and installation cost, $2,500. At what amount will the equipment be recorded at on a balance sheet?  A. $56,500 B. $54,000 C. $51,000 D. $50,000 42. On August 1, Red Company purchased computer equipment for $10,000 cash and also gave 100 shares […]

    81. A company bought a machine that has an expected life of six years and no salvage value. Management estimates that this machine will generate annual after-tax net income of $700. If the accounting rate of return is 10%, what was the purchase price of the machine?A.  $7,000B.  $700C.  $28,000D.  $14,000E.  $3,500                 82. Which of […]

    91. Which of the following is not true regarding expenditures for improvements?  A. Improvements are sometimes called betterments B. Improvements may increase an asset’s performance by increasing the service life. C. Improvements may increase an asset’s performance by reducing the operating costs. D. Improvements may increase an asset’s performance by increasing the rate of output. E. none of the above   92. Epsilon Company suffers a loss to its building […]

  219. On November 12th NetSolutions provides $1,900.00 in services to clients. At the time of service, the clients paid $500.00 in cash and put the balance on account. (a)Journalize this event. (b)On November 29th NetSolutions clients paid an additional $800.00 on their accounts due. Journalize this event. (c)Calculate the amount on accounts receivable on November 30th. 220. Journalize the following selected transactions for August 2008 in […]

    61. Which of the following is a disadvantage of interactive video training?  A. Training is not individualized B. Costs of developing the courseware are relatively high C. Employees do not receive immediate feedback about their performance D. Training is not convenient for both employees and employers Interactive video combines the advantages of video and computer based instruction. Instruction is provided one-on-one to trainees via a personal computer.   […]

    116. The following data is given for the Zoyza Company:  Budgeted production 26,000 units Actual production 27,500 units Materials:     Standard price per ounce $6.50   Standard ounces per completed unit 8   Actual ounces purchased and used in production 228,000   Actual price paid for materials $1,504,800 Labor:     Standard hourly labor rate $22 per hour   Standard hours allowed per completed unit 6.6   Actual labor hours […]

157.Lassen Corporation issued 10-year term bonds on January 1, 20×7, with a face value of $800,000. The face interest rate is 6 percent and interest is payable semiannually on June 30 and December 31. The bonds were issued for $690,960 to yield an effective annual interest rate of 8 percent. The effective interest method of amortization is to be used. The entry to be recorded […]

    161.The financial statement that shows the beginning balance of retained earnings; the changes in retained earnings that resulted from, net income (or net loss); dividends; and the ending balance, is the:     A.Statement of financial position.   B.Statement of cash flows.   C.Balance sheet.   D.Income statement.   E.Statement of retained earnings.         162.Cash investments by stockholders are listed on […]

  41. Mutual agency implies that each partner in a partnership is a fully authorized agent of the partnership. Which of the following statements is correct regarding the authority of a partner to bind the partnership in dealings with third parties?  A. The partner’s authority must be derived from the partnership agreement. B. The partner’s authority may be effectively limited by a formal resolution of the other partners, […]

    102. On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625. On April 30, Robert LLC had not sold the inventory. The market value of unit A was now $685 while the market value of unit B was $550. The adjustment associated with the lower-of-cost-or-market […]