151. U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true? A. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. B. When the lessor enjoys the benefits and bears the risk, the lease is an operating lease. C. When the lessee enjoys […]
64. A business received an offer from an exporter for 10,000 units of product at $17 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 11 Fixed 1 What is the amount of gain or loss from acceptance […]
195. On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for the month ended September 30th, journalize the closing entries for Perez Roofing Company. Cash $22,500 Accounts Receivable 3,575 Office Supplies 2,850 Repair Parts 3,785 Machinery 17,750 Accumulated Depreciation 3,250 Accounts Payable 1,150 Notes Payable 6,500 Capital Stock […]
101. The employee earnings record would contain which column that the payroll register would probably not contain? A. deductionsB. paymentC. earningsD. cumulative earnings 102. The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the A. payroll registerB. payroll checkC. employee’s earnings recordD. employer’s earnings record 103. An employee receives an hourly rate of $15, with time and a half […]
71. Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost. The entry to apply overhead to these production departments is: A. Debit Factory Overhead – Assembly $112,500; debit Factory Overhead – Finishing $31,500; credit […]
141. Firms often acquire derivative instruments to hedge interest rate, exchange rate, commodity price, and other risks. U.S. GAAP and IFRS classify derivatives into which of the following categories? A. Fair value hedges of a recognized asset or liability or of an unrecognized firm commitment, only. B. Cash flow hedges of an existing asset or liability or of a forecasted transaction, only. C. Nonhedging derivative, only.D. Fair value hedges […]
81.With regard to supervision, employee satisfaction is likely to be highest when: A.they share different values and personalities. B.employees are micromanaged. C.managers focus more on supervising than their own work. D.employees take up supervision as an informal responsibility. E.employees get the support needed to achieve their goal. 82._____ is the degree to which a person is surrounded […]
127.A bond with a face value of $10,000 has a current price quote of 102.62. The price in dollars and cents is a. $10,002.62. b. $10,262.00. c. $10,200.62. d. $10,026.20. 128.Serial bonds are bonds that a. are also called term bonds. b. all have the same maturity date. c. mature on several different dates. d. must be secured. […]
91. Which of the following ratios provides a solvency measure that shows the margin of safety of noteholders or bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis? A. ratio of fixed assets to long-term liabilitiesB. ratio of net sales to assetsC. number of days’ sales in receivablesD. rate earned on stockholders’ equity 92. The number of […]
41. Which HR strategy begins by identifying the major business needs and issues, considers how people fit in and what people outcomes are necessary, and builds HR systems focused on meeting those needs? A. HR-focused B. People-linked C. Business-linked D. Business-driven Business-driven functions have fully developed HR strategies which begin by identifying the major business needs and issues, consider how people fit in and what people outcomes are […]
141. The Buy-It-For-Yourself Company had the following assets and liabilities as of December 31, 2006:
ASSETS
Cash$25,000
Accounts receivable15,000
Inventory30,000
Equipment50,000
LIABILITIES
Current portion of long-term debt10,000
Accounts payable2,000
Long-term debt25,000
Determine the quick ration for the end of the year (rounded to one decimal point).
A. 5.8
B. 3.2
C. 3.3
D. 2.4
142. Elgor Company sells merchandise with a one year warranty. In 2007, sales consisted of 2,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2007 and 70% in 2008. In the 2007 income statement, Elgor should show warranty expense of
A. $7,500
B. $17,500
C. $25,000
D. $0
143. Elgor Company sells merchandise with a one year warranty. In 2007, sales consisted of 2,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2007 and 70% in 2008. In the 2008 income statement, Elgor should show warranty expense of
A. $7,500
B. $17,500
C. $25,000
D. $0
144. The cost of a product warranty should be included as an expense in the
A. period the cash is collected for a product sold on account
B. future period when the cost of repairing the product is paid
C. period of the sale of the product
D. future period when the product is repaired or replaced
145. Pilgrim Company sells merchandise with a one year warranty. In 2007, sales consisted of 1,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2007 and 70% in 2008. In the 2007 income statement, Pilgrim should show warranty expense of
A. $4,500
B. $10,500
C. $15,000
D. $0
146. During May, CircuitSound sold 500 portable CD players for $50 each. Each CD player cost CircuitSound $25 to purchase and carried a one-year warranty. If 10 percent typically need to be replaced over the warranty period, what amount should CircuitSound debit Product Warranty Expense for in June?
A. $2,500
B. $1,250
C. $250
D. $1,000
147. During June, CircuitSound sold 800 portable CD players for $50 each. Each CD player cost CircuitSound $25 to purchase and carried a one-year warranty. If 10 percent typically need to be replaced over the warranty period, what amount should CircuitSound debit Product Warranty Expense for in June?
A. $4,000
B. $400
C. $2,000
D. $1,000
148. Estimating and recording product warranty expense in the period of the sale best follows which of the following accounting concepts?
A. Cost concept
B. Business entity concept
C. Matching Concept
D. Materiality concept
149. The Buy-It-For-Yourself Company had the following assets and liabilities as of December 31, 2007:
ASSETS
Cash$28,000
Accounts receivable15,000
Inventory20,000
Equipment50,000
LIABILITIES
Current portion of long-term debt10,000
Accounts payable2,000
Long-term debt25,000
Determine the quick ration for the end of the year (rounded to one decimal point).
A. 5.3
B. 3.6
C. 3.3
D. 2.3
150. The journal entry a company uses to record the estimated accrued product warranty liability is
A. debit Product Warranty Expense; credit Product Warranty Payable
B. debit Product Warranty Payable; credit Cash
C. debit Product Warranty Expense; credit Cash
D. debit Product Warranty Payable; credit Product Warranty Expense
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