78.Which of the following is true regarding the Statement of Cash Flows for nongovernmental, not-for-profit organizations? A)Either the direct or indirect method may be used. B)If a not-for-profit organization received a cash contribution for permanently restricted purposes, that cash contribution would be shown as a cash flow from financing activities. C)Both of the above. D)Neither of the above. 79.Which of the following would be […]

  41.Using the double-declining balance method, the book value at December 31, 2013 would be: A.$21,600. B.$24,800. C.$36,000. D.$45,600. 42.A machine has a cost of $15,000, an estimated residual value of $3,000, and an estimated useful life of four years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation? A.$9,000. […]

    71) The primary criterion for choosing among alternative accounting systems is   71) ______ A) reduction in the amount of time required to perform a particular job. B) improving information flow. C) achievement of organizational goals. D) cost minimization. E) how well they help achieve organizational goals in relation to the costs incurred for these systems.   72) The primary reason for implementing […]

  101. The It’s All About Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The salon has determined the costs of services by activity as follows:  Activity Activity Rate Hair Washing $2.50 Conditioning $3.00 Chemical Treatment $25.00 Styling $10.00         Hair Washing Conditioning Chemical Treatment Styling Hair Cut 1 1 0 0 Complete Style […]

  61.On October 1, 2010, $24,000 of annual magazine subscriptions were sold by Cat World Magazines. The subscribed magazines are delivered on the first day of each month beginning on October 1, 2010.  The total cost of the subscribed magazines is $12,000, equal to $1,000 per month. What is the amount of revenue to be recognized during 2010? a.$24,000 b.$3,000 c.$6,000 d.$8,400 62.On October 1, […]

    141. An impairment loss on all assets except intangibles that do notrequire amortization arises when A. the book value of the assets exceed the undiscounted cash flowsB. the book value of the assets exceed the market valueC. the market value of the assets exceed the undiscounted cash flowsD. the book value of the assets exceed the discounted cash flowsE. the book value of the assets exceed the liquidation value   […]

    61. Which of the following would not be considered a product cost?A.  Direct labor costs.B.  Factory supervisor’s salary.C.  Factory line worker’s salary.D.  Cost accountant’s salary.E.  Manufacturing overhead costs.     62. Overhead costs:A.  Are directly related to production.B.  Can be traced to units of product in the same way that direct materials can.C.  Cannot be traced to units of product in the same […]

  41) The ending balance in Work-in-Process Control represents the total costs of all jobs that have NOT yet been completed. 42) Direct materials and direct manufacturing labor become a part of work-in-process inventory on the balance sheet because the direct manufacturing labor transforms the direct materials to another asset, work-in-process inventory.   43) Goods are ready to be sold when their respective costs are […]

  81. Which one of the fixed asset accounts listed below will not have a related contra asset account? A. Office EquipmentB. LandC. Delivery EquipmentD. Building 82. Prepaid insurance is reported on the balance sheet as a A. current assetB. fixed assetC. current liabilityD. long-term liability 83. The income statement is prepared from the A. adjusted trial balanceB. income statement columns of the work sheetC. either the adjusted trial balance or the income statement columns of the work sheetD. both the adjusted trial […]

    101. A contingent liability should be disclosed in a note to the financial statements rather than being recorded if: a.The likelihood of a loss is remote. b.The incurrence of a loss is reasonably possible. c.The incurrence of a loss is probable. d.The likelihood of a loss is eighty percent.     102. Volt Electronics sells equipment that includes a three-year warranty. Repairs under […]