61. A common-size income statement expresses each expense and net income as a percentage of   A. assets B. revenues C. liabilities D. expenses E. shareholders’ equity   62. Which of the following is not true?  A. Net income or profit for a period is the difference between revenues from selling goods and services and the expenses incurred to generate those revenues, plus some gains or losses of the period. B. If […]

  61. A business received an offer from an exporter for 10,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:  Domestic unit sales price $20 Unit manufacturing costs:     Variable 13   Fixed 1     What is the amount of gain or loss from acceptance of […]

  51) Process-costing FIFO is usually applied to both the units entering a department and the units leaving a department. 52) The weighted average method of process costing assigns the cost of equivalent units worked on during the current period first to complete beginning inventory, next to start and complete new units, and finally to units in ending work-in-process inventory.   53) A major advantage […]

    61.The _____ compares the race, sex, and ethnic composition of an employer’s workforce with that of the available labor supply.    A.contingency analysis   B.matrix analysis   C.path goal analysis   D.differential analysis   E.utilization analysis     62.Goals and timetables in an affirmative action plan:    A.compare the race, sex, and ethnic composition of an employer’s workforce with that of the available labor supply. […]

  171. The verification that the total dollar amount of the debits equals the total dollar amount of the credits in the ledger is called a A. ledgerB. trial balanceC. accountD. balance sheet 172. The process of transferring the journal entries to the accounts is known as A. postingB. updatingC. journalizingD. summarizing 173. The posting process will include the transfer of the following information from the journal to the account. A. date, amount (debit or credit)B. date, amount (debit or credit), […]

  Multiple Choice Questions  23.Which of the following statements is not correct?    A. The use of the direct charge-off method of recording losses from uncollectible accounts usually results in the balance in the Accounts Receivable account being overstated.   B. The direct charge-off method of recording losses from uncollectible accounts is the method required by Federal income tax laws.   C. The direct charge-off method of recording losses […]

  120.A company has the following per unit original costs and replacement costs for its inventory. LCM is applied to individual items.Part A: 50 units with a cost of $5, and replacement cost of $4.50Part B: 75 units with a cost of $6, and replacement cost of $6.50Part C: 160 units with a cost of $3, and replacement cost of $2.50Under the lower of cost […]

    51. Which of the following is not true about goodwill?  A. Goodwill reflects the value of knowledgeable employees. B. Goodwill reflects the value of a reputation for quality products. C. Under U.S. GAAP, goodwill has an indefinite life, and firms do not amortize the amount recognized as goodwill. D. Firms must test goodwill annually for a loss in value. E. Under IFRS, goodwill has an indefinite life, and firms […]

  11) Financial accounting provides budgeting information to a company’s managers.   12) A partnership is formed under state law. 13) Accounting: A) measures business activities. B) processes data into reports and communicates the data to decision makers. C) is often called the language of business. D) is all of the above.   14) The two types of accounting are: A) profit and nonprofit. B) […]

  51. Phipps Company borrowed $25,000 cash on October 1, 2010, and signed a six-month, 8% interest-bearing note payable with interest payable at maturity. Assuming that no adjusting entries have been made during the year, the amount of accrued interest payable to be reported on the December 31, 2010 balance sheet is which of the following?  A. $250 B. $300 C. $500 D. $750 52. Phipps Company borrowed $25,000 cash on […]