104.              Which of the following statements is not true regarding agency funds? A)Agency funds use modified accrual accounting. B)Agency funds report only assets and liabilities; no fund equities, revenues, or expenditures are recorded. C)Agency funds are reported in the fiduciary funds Statement of Fiduciary Net Assets. D)None of the above; all are true. 105.              Which is true regarding the basis of accounting for fiduciary […]

    107. A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset?  A. $2,000 loss B. $1,500 loss C. $3,500 gain D. $2,000 gain   108. The Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700.  The old […]

  69. If the trial balance totals are not equal, the error may have been caused by a transposition if the difference is divisible by  A. 2. B. 7. C. 9. D. 5.   70. When the trial balance totals are not equal, the error may have been caused by recording a debit as a credit if the difference is divisible by  A. 2. B. 7. C. 9. D. 5.   71. If a trial balance […]

  95.The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below.  The following transactions occurred during the month of November.a. Collected $350 from credit customersb. Issued a check for $700 for rentc. Paid $1,900 for salariesd. The owner withdrew $500 in cash for personal expensese. Issued a check for $200 to pay the monthly utility billf. Received $2,845 in cash for […]

  81. Which of the following statements is correct using the direct costing concept? A. All manufacturing costs are included in the calculation of cost of goods manufactured.B. Only fixed costs are included in the calculation of cost of goods manufactured while variable costs are considered period costs.C. Only variable manufacturing costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs.D. All manufacturing […]

  71.Which of the following is included in Required Supplementary Information (RSI)? A)Management’s Discussion and Analysis (MD&A). B)Budgetary Comparison Schedule. C)The Schedule of Funding Progress and Schedule of Employer Contributions when the government reports a pension trust fund. D)All of the above. 72.Which of the following is false regarding the government-wide financial statements? A)The government-wide financial statements are not required to present prior-year data. B)The […]

  1.For a compensatory stock option plan for which the date of grant and measurement date are  the same, compensation cost should be recognized in the income statement a.At the date of retirement b.Of each period in which services are rendered c.At the exercise date d.At the adoption date of the plan 2.  Payment of a dividend in stock a.  Increases the current ratio b.  […]

  1) The adjusting entry to record inventory shrinkage would include a debit to the cost of goods sold account in a periodic inventory system. 2) In a periodic inventory system, the closing entries include a debit to the Inventory account in an amount that equals the ending inventory, and a credit to the Inventory account in an amount that equals the beginning inventory.   […]

  25) The net present value method focuses on: A) cash inflows B) accrual-accounting net income C) cash outflows D) Both A and C are correct.   26) If the net present value for a project is zero or positive, this means that the: A) project should be accepted B) project should not be accepted C) expected rate of return is below the required rate […]

  123. Skyline, Inc. purchased a portfolio of trading securities during 2012.  The cost and fair value of this portfolio on December 31, 2012, was as follows: Name Number of Shares Total Cost Total Fair Value Alcon, Inc. 1,200 $16,000 $15,000 Easton Company 700 23,000 21,500 Panther Company 300 9,000 9,200 Total   $48,000 $45,700         Required:Provide the journal entry to record the […]