21. Which of the following statements is true?  A. Fixed costs are never relevant for decision making. B. Opportunity costs are never relevant to decision making. C. Information does not have to be exactly accurate to be relevant to decision making. D. A cost that is relevant in one decision context is relevant in other decision contexts. 22. Espy Company is trying to decide between the following two alternatives:    […]

  81. Wendell Company provided the following pertaining to its recent year of operation: ? Common stock with a $10,000 par value was sold for $50,000 cash. ? Cash dividends totaling $20,000 were declared, of which $15,000 were paid. ? Net income was $70,000. ? A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,000 market value. […]

    101.Haven Corporation issued $700,000 of 10-year bonds payable at par in 2011. During 2015 Haven paid $50,000 interest and an additional $233,333 to retire one-third of the bonds at par. These activities would be reported in Haven’s statement of cash flows for 2015 as:    A. $283,333 net cash provided by financing activities.   B. $283,333 net cash used in financing activities.   C. $233,333 net cash […]

  31) In rate regulation settings, which method is usually preferred over the sales value method? A) constant gross-margin percentage NRV method B) estimated net-realizable method C) physical measure method D) sales value at split off method E) rate regulation method 32) Advantages of the sales value at split off method include all of the following EXCEPT A) it does not presuppose an exact number […]

    11.The Duke Company rents out a portion of its office space to another company. At the beginning of 2014, the balance in the unearned rent revenue account was $1,200. During 2014, Duke recognized $6,800 of rent revenue. If the ending balance of unearned rent revenue is $700, how much cash was received from the tenant for rent during 2014?    A. $7,300   B. $6,800   […]

  29) The Pitt Corporation has been outsourcing data processing in the belief that such outsourcing would reduce costs and increase corporate profitability. In spite of this, there has been no meaningful increase in corporate profitability.   Previously, Pitt used a single-rate method to allocate data processing costs. A per unit cost for data processing was computed and compared to the price of the outside […]

    88. Below is budgeted production and sales information for Flushing Company for the month of December:    Product XXX Product ZZZ Estimated beginning inventory   30,000 units   18,000 units Desired ending inventory   34,000 units   17,000 units Region I, anticipated sales 320,000 units 260,000 units Region II, anticipated sales 180,000 units 140,000 units       The unit selling price for product XXX is $6 and […]

  13.3   Learning Objective 13-3 1) When making a collection, no entry was recorded to reinstate an account previously written off. The allowance method is being used. This error would cause: A) total assets to be overstated. B) total liabilities to be understated. C) net income to be understated. D) None of these is correct. 2) The journal entry to write off an account judged […]

  Multiple Choice Questions   55. Which of the following statements regarding accounting information systems arenot true?  A. Accounting information systems collect and process data from transactions and events. B. Accounting information systems organize data in useful forms. C. Accounting information systems are not subject to internal control policies. D. Accounting information systems are useful to effective decision making. E. Accounting information systems communicate information to business decision makers. 56. Which of […]

  21. Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share. The entry to record the issuance will not include a:  A. Debit to Cash $1,500. B. Credit to Additional Paid-In Capital $1,400. C. Credit to Common Stock of $100. D. All of the other options would be included. 22. Preferred stock is called preferred because it usually has two preferences over common stock. […]