56.Plans that identify costs and expenses under each manager’s control prior to the reporting period, typically based on the flexible budget approach, are called:    A. Cost accounting systems. B. Managerial accounting systems. C. Responsibility accounting systems. D. Responsibility accounting budgets. E. Activity-based accounting systems. 57.Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be:    A. A payroll clerk. B. A cost center manager. […]

  105. Garvin, a consumer foods company reports the following information related to its only pension plan for 2013 (amounts in millions). Pension Plan Assets, Beginning of 2013…………………………………………………. $5,086 Plus Actual Return on Investments………………………………………………………..      513 Plus Employer Contribution………………………………………………………………….        19 Less Benefits Paid…………………………………………………………………………….     Pension Plan Assets, End of 2013………………………………………………………… $5,385====== Pension Plan Liability, Beginning of 2013………………………………………………. $5,771 Plus Service Cost……………………………………………………………………………..      245 Plus Interest […]

  21) If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer’s account as uncollectible? A) Bad Debts Expense B) Accounts Receivable C) Accounts Payable D) Bad Debts Recovered 22) If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer’s account […]

    11.Select the false statement regarding responsibility accounting (RA).    A. It calls for the preparation of reports containing detailed information regarding the performance of a responsibility center.   B. It is most effective in a decentralized business structure where many managers exert control over various segments of a company’s operations.   C. It calls for the preparation of responsibility reports listing the budgeted and actual revenue and/or […]

  79. A controlling influence over the investee is based on the investor owning voting stock exceeding:  A. 10%. B. 20%. C. 30%. D. 40%. E. 50%. 80. Long-term investments can not include:  A. Held-to-maturity debt securities. B. Securities with maturity dates within one operating cycle. C. Available-for-sale equity securities. D. Equity securities giving an investor significant influence over an investee. E. Available-for-sale debt securities. 81. Consolidated financial statements:  A. Show the results of operations, cash flows, and the […]

  21. Peck CompanyThe Peck Company reported the following items on its financial statements for the year ending December 31, 2012.  Sales$1,560,000Cost of sales$1,400,000 Selling, general andOther expense30,000 administrative expense40,000 Dividends10,000Income tax expense25,000 Refer to the information provided above for Peck Company. The Income Statement of Peck will report net income for the current year in the amount of: A. $  55,000.B. $  65,000.C. $  85,000.D. $120,000. 22. Peck CompanyThe Peck Company […]

    81. An account balance is:  A. The total of the credit side of the account. B. The total of the debit side of the account. C. The difference between the total debits and total credits for an account including the beginning balance. D. Assets = Liabilities + Equity E. Always a credit.   82. Of the following accounts, the one that normally has a credit balance is:  A. Cash B. Office Equipment […]

Multiple Choice Questions   1.One of the primary reasons for investing in equity securities includes: A.Acquiring debt of competing companies. B.Appreciation in the value of the stock. C.Earning interest revenue. D.Deducting dividend payments for tax purposes. 2.One of the primary reasons for investing in debt securities includes: A.Receiving dividend payments. B.Acquiring significant influence. C.Earning interest revenue. D.Deducting interest payments for tax purposes. 3.Which of the […]

90.The ability of an investing company to affect the operating and financial policies of another company, even though the investor holds less than 50 percent of the voting stock, is known as   a. significant influence. b. noninfluential control. c. control. d. minority interest.       91.The cost-adjusted-to-market method of accounting for investments is used when the investment is   a. controlling. b. noninfluential […]

  173. The following information is available for the Aarons Corporation:   Aarons Corporation Balance Sheets At December 31   2015   2014   Assets:            Cash…………………………….. $  24,640   $  23,040      Accounts receivable……………………. 32,180   29,400      Merchandise inventory…………………. 73,125   61,710      Long-term investments…………………. 55,900   56,400      Equipment…………………………. 175,500   145,500      Accumulated […]