81. Which of the following is/are not true concerning an employee stock options’ time value element? A. The time value element results from the possibility of increases in the market price of the stock during the exercise period. B. Time value is larger the longer the exercise period and the more volatile the market price of the stock. C. A stock option whose exercise price exceeds the current […]

    71. Internal control systems are: A. Developed by the Securities and Exchange Commission for public companies.B. Developed by the Small Business Administration for non-public companies.C. Developed by the Internal Revenue Service for all U.S. companies.D. Required by Sarbanes-Oxley (SOX) to be documented and certified if the company’s stock is traded on an exchange.E. Required only if a company plans to engage in interstate commerce.     72. Cash, not including cash […]

  11) Which of the following best describes the cost-plus pricing approach? A) Cost base + Markup component = Prospective selling price B) Prospective selling price + Cost base = Markup component C) Cost base + Gross margin = Prospective selling price D) Variable cost + Fixed cost + Contribution margin = Prospective selling price E) Cost base plus markup ÷ 100% = selling profit […]

    61.When short-term investments appear in the balance sheet at their current market values, it is an exception to the ______ principle.    A.Revenue recognition   B.Matching   C.Cost   D.Relevance         62.The unused portion of a line of credit:    A.Is reported as a current liability in the balance sheet.   B.Decreases a company’s liquidity.   C.Can be used at any time […]

  34) Bedtime Bedding Company manufactures pillows. The Cover Division makes covers and the Assembly Division makes the finished products. The covers can be sold separately for $5.00. The pillows sell for $6.00. The information related to manufacturing for the most recent year is as follows:   Cover Division manufacturing costs $6,000,000 Sales of covers by Cover Division 4,000,000 Market value of covers transferred to […]

  41) Which statement about conversion costs is correct, using the three-part classification of costs? A) They include only direct manufacturing labour costs. B) They include only indirect manufacturing costs. C) They include both direct manufacturing labour costs and manufacturing overhead costs. D) They include indirect manufacturing labour costs but not manufacturing overhead costs. E) They include indirect manufacturing costs and direct manufacturing labour costs. […]

    71.An asset that cost $25,000 was sold for $9,000 cash. Accumulated depreciation on the asset was $16,000. The entry to record this transaction includes the recognition of    A. a gain of $9,000.   B. a loss of $7,000.   C. neither a gain nor a loss.   D. a loss of $2,000.       72.An asset that cost $25,000 was sold for $8,000 cash. Accumulated depreciation […]

  47) Manufacturing overhead costs may include all of the following EXCEPT: A) salary of the plant supervisor B) labor that can be traced to individual products C) material that can be traced to individual products D) overtime premiums paid to plant workers 48) Which of the following formulas determine cost of goods sold in a merchandising entity? A) Beginning inventory + Purchases + Ending […]

    101. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000.  Fixed factory overhead cost$105,000 Fixed selling and administrative costs35,000 Variable direct materials cost per unit4.34 Variable direct labor cost per unit5.18 […]

    51. The degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in organizations refers to the selection method’s:  A. reliability. B. validity. C. generalizability. D. utility. The more reliable, valid, and generalizable the selection method is, the more utility it will have.     52. Which of the following statements about generalizability is TRUE?  A. Validity coefficients are situationally specific. B. The level of correlation […]