81. ____ are considered to be product or service market stakeholders.  A. Employees and customers B. Customers and vendors C. Owners and managers D. Government and banks 82. The following are examples of internal stakeholders except:  A. Managers B. Owners C. Employees D. all of the above 83. Due to various fraudulent business practices and accounting coverups in the early 2000’s, Congress enacted the Sarbanes-Oxley Act of 2002. The act was responsible for establishing a […]

  130.On December 31, a company needed to estimate its ending inventory to prepare its annual financial statements. The following information is currently available:Inventory as of January 1: $120,500Net sales for the year: $400,000Net purchases for the year: $270,500This company typically achieves a gross profit ratio of 15%. Ending Inventory under the gross profit method would be:    A.$102,425. B.$10,425. C.$9,000. D.$51,000. E.$51,425. 131.Interim financial statements:    […]

  Learning Objective 4-4   1) Credit card sales benefit companies because ________. A) the risk of uncollectible accounts is transferred to credit card companies B) fewer customers will be able to buy products or services C) the credit card company is not responsible for evaluating customers’ credit-worthiness D) they will receive less than the full amount of the sale from the credit card company […]

    91. (CMA adapted, Jun 86 #5) A bond issue sold at a premium is valued on the statement of financial position at the  A. maturity value B. maturity value plus the unamortized portion of the premium C. maturity value less the unamortized portion of the premium D. current market value E. par value   92. (CMA adapted, Dec 86 #20) On January 1, Year 1, Straf Company sold its 5-year, […]

    11.Which of the following statements is true?    A. Fixed costs are sometimes relevant for decision making.   B. Opportunity costs are never relevant to decision making.   C. Information must be exactly accurate to be relevant to decision making.   D. A cost that is relevant in one decision context is relevant in other decision contexts.     12.Osprey Company is trying to decide between the following […]

    91. Which of the following ratios provides a solvency measure that shows the margin of safety of bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis? A. ratio of fixed assets to long-term liabilitiesB. ratio of net sales to assetsC. number of days’ sales in receivablesD. rate earned on stockholders’ equity   92. The number of times interest […]

    63. The human resources department of a large company would be considered:  A. A cost center. B. A profit center. C. An investment center. D. A revenue center.     64. The bookstore of a university would be considered:  A. A cost center. B. A profit center. C. An investment center. D. A revenue center.     65. Many companies view performance margin as a more useful tool than responsibility margin for evaluating segment […]

    81. Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:  Work in process, beginning of period $40,000 Costs added during period:     Direct materials […]

    81.Most preferred stocks have one or more of the following characteristics, except:    A. To receive dividends on a preferred basis.   B. Cumulative dividends.   C. Voting rights.   D. Callable at the option of the corporation.         82.Which of the following individuals has the most power to influence corporate policy on a long-term basis?    A. A shareholder owning 60% of the outstanding common stock. […]

    121. The net income reported on the income statement is $85,000.  However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $800.  Net income, as corrected, is  A. $84,200 B. $85,000 C. $82,800 D. $82,000   122. At the end of the fiscal year, the usual adjusting entry to Prepaid Insurance to record expired insurance was omitted.  […]