173. Hakik Enterprises offers rug cleaning services to business clients.  Below is the work sheet containing the trial balance for the month ended July 31, 2012.    Hakik EnterprisesWork SheetFor the Month Ended July 31, 2012   Trial Balance Adjustments Adjusted Trial Balance   Debit Credit Debit Credit Debit Credit Cash 36           Prepaid Insurance 12           […]

    67. The acid-test ratio is most similar to the: a.Current ratio. b.Debt to equity ratio. c.Times interest earned ratio. d.Inventory turnover ratio.     68. The acid-test ratio is: a.The liquidity ratio divided by the equity ratio. b.Current assets minus inventory divided by current liabilities minus accounts payable. c.Cash, net receivables, and current investments divided by current liabilities. d.Cash divided by accounts payable. […]

  41) When the present value of expected cash inflows from a project equals the present value of expected cash outflows of a project, the discount rate is the 41) ______ A) net present value rate. B) universal rate. C) required rate of return. D) required rate. E) inflation rate. Use the information below to answer the following question(s).   Wet Water Company drills residential […]

  76.On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the maturity value of the note on March 1?     A.$9,000 B.$720 C.$9,120 D.$9,720 E.$9,240 77.On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. Alan made the appropriate year-end accrual. What is the journal entry as of […]

  MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) Quality of design measures 21) ______ A) how closely the characteristics of products or services match the needs and wants of the Board of Directors. B) how closely the characteristics of products or services match the needs and wants of competitors. C) how closely the characteristics of products […]

    35.In May, a retailer recorded credit sales of $10,000. Assuming the sales tax rate is 7 percent, the entry to record the sales in the sales journal would include:    A. a debit to Accounts Receivable of $10,700.   B. a debit to Accounts Receivable of $10,000.   C. a credit to Sales of $10,700.   D. a debit to Sales Tax Payable of $700.       […]

    71. Rock Aerospace CompanyRock Aerospace Company signed a contract on April 1, Year 4, to build a satellite for $28,000,000. Estimated costs for the contract are:  Year 4 $  5,600,000 Year 5 $11,200,000 Year 6 $  5,600,000     Assume that actual costs incurred coincide with expectations. Cash collections of the contract price are as follows:  Year 4 $  4,200,000 Year 5 $  7,000,000 Year 6 $16,800,000   […]

  9) To give more weight to the product that most likely drives the sales of the bundled product, the revenue allocation should be weighted using: A) selling prices B) unit costs C) physical units D) stand-alone product revenues   10) The revenue allocation may be weighted using physical units when: A) the individual products within the bundle have approximately the same value B) selling […]

  177.Rising Sun, Inc. produces granola that requires two processes, mixing and baking, to complete. The best-selling type of granola is cherry almond delight. Information related to the 100,000 units of cherry almond delight produced annually is shown in the following table:  Direct materials$230,000 Direct labor Mixing Department (600 DLH × $24 per DLH)$14,400 Baking Department (400 DLH × $22 per DLH)$8,800 Machine hours Mixing […]

    21. Which of the following is true regarding income recognition?  A. The seller must have substantially performed its obligations to the customer (for example, by transferring ownership of goods to the customer). B. The seller must have obtained an asset from the customer that it can reliably measure. If the asset is not cash, the seller must be reasonably certain of converting it into cash. C. The […]