53. Products which emerge from a shared manufacturing process are referred to as:  A. Complementary products. B. Joint products. C. Contributory products. D. Codependent products.     Burns Industries currently manufactures and sells 20,000 power saws per month, although it has the capacity to produce 35,000 units per month. At the 20,000-unit-per-month level of production, the per-unit cost is $65, consisting of $40 in variable costs and $25 […]

    51. The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.  Product Number of units Labor hrsper unit Machine hours  per unit Blinks 1,000 4 5 Dinks 2,000 2 8         All of the machine hours take place in the Fabrication department, which has […]

  89. If the exchange rate for Canadian and U.S. dollars is 0.82777 to 1, this implies that 3 Canadian dollars will buy ____ worth of U.S. dollars.  A. $ 0.2759 B. $0.82777 C. $1.82777 D. $2.48 E. $1.00 90. Kreighton Manufacturing purchased on credit £50,000 worth of production materials from a British company when the exchange rate was $1.97 per British pound. At the year-end balance sheet date the exchange rate […]

  70.A company purchased $60,000 of 5% bonds on May 1 at par value. The bonds pay interest on March 1 and September 1. The amount of interest accrued on December 31 (the company’s year-end) would be:    A. $1,000. B. $500. C. $1,250. D. $2,500. E. $1,500. 71.A company paid $37,800 plus a broker’s fee of $525 to acquire 8% bonds with a $40,000 maturity value. The company intends to […]

  Multiple Choice Questions  36.A comparative financial statement:    A. Places the balance sheet, the income statement, and the statement of cash flows side-by-side in order to compare the results.   B. Places two or more years of a financial statement side-by-side in order to compare results.   C. Places the financial statements of two or more companies side-by-side in order to compare results.   D. Places the dollar amounts […]

  154. Accompanying a bank statement for Marsh Land Properties is a credit memo for payment on a $15,000 note receivable that had been collected by the bank. The rate of interest on the note is 6%.  Marsh Land Properties had been notified by the bank at the time of collection, but had made no entries.  Journalize the entry that should be made by Marsh Land […]

    102. Eagle News has a $6,000 account receivable from one of its advertisers, Allwood Floors. When Eagle receives $3,600 from Allwood as partial payment:  A. Eagle should debit Accounts Receivable for $3,600. B. Eagle should credit Cash for $3,600. C. Eagle should credit Accounts Receivable for $3,600. D. Eagle makes no journal entry until the total of $6,000 is received from Allwood. 103. Bruno’s Pizza Restaurant makes full payment […]

  41) Country Heather manufactures flowerpots. It expects to sell 40,000 flowerpots in 2007. The company had enough beginning inventory of direct materials to produce 48,000 units. Beginning inventory of finished units totalled 4,000 with a target ending inventory of 5,000 units. The flowerpots sell for $6.00 and the company keeps no work-in-process inventory. Direct materials costs for each flowerpot total $2.00 while direct labour […]

  Multiple Choice Questions   31. Which of the following statements is not correct? A. Each general partner has unlimited liability for the debts of a partnership. B. Federal income tax is levied on the net income of a partnership and on the earnings of the individual partners when the net income is distributed to them. C. Any general partner can make valid contracts for a partnership and can […]

    81.Which of the following is an advantage for employers who implement flexible benefits plans?    A.Low initial design costs   B.Low administrative costs   C.Control over the size of the contribution   D.Low adverse selection   E.Easy estimation of the costs of benefits     82.In cafeteria-style plans, adverse selection can be controlled by:    A.allowing employees to choose benefits based on their personal needs. […]