11) The budget period: A) must be for one year. B) can be for any length of time. C) must be for one month. D) is none of the above. 12) When reporting cash on the balance sheet, companies: A) show each bank account separately. B) combine cash with accounts receivable. C) include any restricted amounts. D) combine cash and cash equivalents.   13) […]

    91.For depreciable property other than real estate, MACRS is based upon:    A. The declining-balance method.   B. The straight-line method.   C. A 10-year recovery period.   D. The depreciation method and recovery period used by the company in its financial statements.         92.Which of the following statements about MACRS is not correct?    A. MACRS is the only accelerated depreciation method that may be used […]

    91. Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed:  A. miscellaneous administrative expenses B. direct expenses C. indirect expenses D. fixed expenses   92. In evaluating the profit center manager, the income from operations should be compared:  A. across profit centers B. to historical performance or budget C. to the competitor’s net income […]

  225. Prepare a trial balance, listing the following accounts in proper sequence.  The accounts (all normal balances) were taken from the ledger of Sophie Designs Co. on April 30, 2014.  Accounts Payable $ 4,100   Rent Expense $ 1,500 Accounts Receivable 3,450   Salary Expense 14,000 Cash 6,700   Fees Earned 45,425 Capital Stock 10,000   Supplies 3,125 Dividends 7,500   Supplies Expense 1,700 Equipment […]

    91. Given the Scavenger Company data, what is net income using absorption costing?A.  $201,250B.  $181,250C.  $150,000D.  $177,600E.  $276,250     92. Given the Scavenger Company data, what is net income using variable costing?A.  $201,250B.  $181,250C.  $150,000D.  $177,600E.  $276,250               Reference: 19_04 Cool Pools, a manufacturer of above ground pools, began operations on January 1 of the current […]

    74.The normal balance of an account is the    A. increase side of the account.   B. decrease side of the account.   C. the left side of the account.   D. the right side of the account.       75.Identify the accounts below that would ALL appear on the balance sheet.    A. Cash, Accounts Payable, Owner’s Capital (ending balance)   B. Accounts Receivable, Accounts Payable, Fee Income   […]

    11.Which of the following is not a benefit of budgeting?    A. Provides assurance that accounting records are in accordance with generally accepted accounting principles   B. Coordinates the activities of the company by integrating the plans of all departments   C. Requires managers to plan ahead and to formalize their objectives   D. Sets realistic standards that serve as benchmarks for evaluating performance     12.One of […]

  73.Which of the following statements is false? A)Resources representing supplies and prepaid items are classified in governmental funds as Nonspendable Fund balance. B)Capital Projects, debt service and permanent funds do not typically record budgets. C)Debt service and permanent funds do not record encumbrances. D)Principal of permanent funds is classified as Committed Fund Balance 74.With respect to Capital Projects Funds, which of the following is […]

    141.Refer to the information above. The amount of bond interest expense recognized by Trego Company in 2016 with respect to these bonds is:    A.$44,000.   B.$42,000.   C.$38,000.   D.$36,000. ($1,000,000 × .04) – 2($20,000/10) = $3644,000       142.Refer to the information above. The carrying value of this liability in Trego Company’s December 31, 2016, balance sheet is:    A.$1,000,000.   B.$1,016,000. […]

    51. Wigs and Torys Plc. is a leading operator of pubs and pub restaurants in the United Kingdom. It operates and franchises about 10 wine restaurants under the name Bottoms Up Bar, primarily in London. Suppose that in contracting with a franchisee of an Bottoms Up Bar wine restaurant, Wigs and Torys agrees to provide services, including site selection, décor design, marketing, advertising, and […]