111. The assets of a company total $700,000; the liabilities, $200,000. What are the total claims of the owners?  A. $900,000 B. $700,000 C. $500,000 D. $200,000 E. It is impossible to determine unless the amount of owners’ investment is known.   112. Our company has three times as many assets as it does liabilities. If total liabilities are $55,000, what is the amount of owners’ equity?  A. $55,000 B. $110,000 C. $165,000 […]

  109.              The Fire Department of a certain city received an appropriation in the amount of   $13,000,000 for the fiscal year ended December 31, 2014. During the month ended January 31, 2014, the following transactions occurred: (a) purchase orders were issued in the amount of $400,000; (b) purchase orders, related to (a) above, were filled in the amount of $380,000; the related invoice amount was […]

  131. The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units. Compute the factory overhead controllable variance. A. 9,000FB. 9,000U 5,500FD. 5,500U   132. The St. Augustine Corporation originally […]

    61.The Pregnancy Discrimination Act of 1978 requires employers to:    A.offer disability plans with pregnancy-related coverage.   B.treat pregnancy as they would any other disability when they do offer disability plans.   C.provide up to eight weeks of paid leave to the mother upon the birth of a child.   D.provide up to six weeks of unpaid leave to the father upon the birth […]

    41. When the market value of inventory items has declined below their cost, which method would be the most appropriate in complying with GAAP?  A. Weighted average B. LIFO C. Lower-of-cost-or-market D. FIFO   42. When inventories are written down due to the application of the lower-of-cost-or-market (LCM) rule, which of the following is usually increased?  A. Cost of goods sold B. Inventories C. Operating expenses D. Accumulated depreciation–inventory   43. Which of the […]

  Multiple Choice Questions  30.At a time of declining prices, which cost flow assumption will result in the highest ending inventory?    A. FIFO B. LIFO C. Weighted average D. Either A or C 31.When prices are rising, which method of inventory, if any, will result in the lowest relative net cash outflow (including the effects of taxes, if any)?    A. weighted average. B. FIFO. C. LIFO. D. None of these; inventory methods cannot […]

  31) Tanner Company acquired equipment #1, equipment #2, and equipment #3, for $600,000. Equipment #1 is appraised at $240,000, equipment # 2 is appraised at $310,000 and equipment #3 is appraised for $110,000.The cost of equipment #2 is: A) $220,218. B) $200,000. C) $281,818. D) $310,000. 32) Bixby Corporation purchased land and a building for $800,000. An appraisal indicates that the land’s value is […]

  99. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:  A. Debit Office Supplies $105 and credit Office Supplies Expense $105. B. Debit Office Supplies Expense $105 and credit Office Supplies $105. C. Debit Office Supplies Expense $254 and credit Office Supplies $254. D. Debit Office Supplies […]

    101. When referring to a note receivable or promissory note  A. the maker is the party to whom the money is due. B. the note is not considered a formal credit instrument. C. the note cannot be factored to another party. D. the note may be used to settle an accounts receivable.   102. When a company receives an interest-bearing note receivable, it will  A. debit Notes Receivable for the […]

  27) Indicate if the account is current asset (CA), long-term asset (LTA), current liability (CL), or long-term liability (LTL):   1.Accounts Payable________ 2.Accounts Receivable________ 3.Furniture________ 4.Income Tax Payable________ 5.Inventory________ 6.Land________ 7.Notes Payable due in 3 years________ 8.Short-Term Investments________ 9.Store Supplies________ 10.Unearned Rent________ 11.Intangible Assets________ 12.Interest Payable________   28) The adjusted trial balance of Debit Company is shown below. Prepare the necessary closing entries. There […]