21) Explain net income and what implications can tax have on it that influences a manager’s decision?   Objective 3.4   1) Assume only the specified parameters change in a cost-volume-profit analysis. If the contribution margin increases by $6 per unit, then ________. A) fixed costs increases by $6 per unit B) operating profits decreases by $6 per unit C) fixed costs decreases by […]

   241.  Verity Siding Company, Inc., owned by S. Verity, began operations in May and completed the following transactions during that first month of operations. Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns in the table below. Do not determine new account balances after each transaction. Determine the final total for […]

  11) The coefficient of determination (r2) measures the percentage of variation in Y explained by X (the predictor variable).   12) Which of the following is an equation of a variable cost function? A) Y = ax + bx B) Y = a + bx C) Y = b D) Y = a E) Y = bx 13) Which of the following describes the […]

61.Use this information to answer the following question.   The trial balance for Tsung Corporation appears as follows:     If the estimated depreciation for office equipment were $200, the adjusting entry would contain a   a. credit to Office Equipment for $200. b. credit to Accumulated Depreciation, Office Equipment for $200. c. credit to Depreciation Expense, Office Equipment for $200. d. debit to Accumulated […]

  158. Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:    End Beginning Cash $  62,000 $73,000 Accounts receivable (net) 75,000 60,000 Inventories 54,000 47,000 Accounts payable       (merchandise creditors) 43,000 37,000 Salaries payable 2,800 3,800 Sales (on account) 210,000   Cost of merchandise sold 70,000   Operating expenses other than depreciation 67,000 […]

    120.Refer to the information above. The entry to record the issuance of bonds payable on April 30, Year 2, includes:    A. A credit to Premium on Bonds Payable of $200,000.   B. A debit to Cash of $150,000.   C. A debit to Bond Interest Expense of $200,000.   D. A credit to Bond Interest Payable of $200,000.         121.Refer to the information above. […]

    41.On common size income statements, each component in the income statement is represented as a percentage of:    A.Net income.   B.Net sales.   C.Total assets.   D.Profit.         42.During the years 2013 through 2015, Powers, Inc., reported the following amounts of net income (dollars in thousands):  Relative to the prior year, the percentage change in net income:    A.Was the same in […]

  30) Show the effects of each of the following items on assets, liabilities, and shareholders’ equity. Show the appropriate dollar amount using parentheses for negative amounts. Account titles are not required. The first transaction has been done for you.   a. Earned $8,000 in sales revenues in the last week of the month but haven’t billed (invoiced) or collected from the customers yet b. […]

  21) The sales-volume variance is the difference between ________. A) a sales-mix variance and the corresponding sales-quantity variance B) a flexible-budget amount and the corresponding static-budget amount C) a market-share variance and the corresponding market-size variance D) a sales-mix variance and the corresponding market size variance   22) The sales-quantity variance is calculated by ________. A) deducting budgeted contribution margin based on actual units […]

  51) If joint products end up with the same gross margin percentage, which of the following is TRUE? 51) ______ A) The gross margin percentage NRV method must have been used. B) The estimated net-realizable method must have been used. C) If all products are sold at the split off point, and there were no opening inventories, the sales value at split off method […]