51.The accounting concept or principle that is perhaps the greatest single culprit in distorting the results of financial statement analysis is the:    A. Matching principle.   B. Conservatism concept.   C. Historic cost principle.   D. Time value of money concept.     52.As of December 31, 2013, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company […]

    81.Jake is the manager at a restaurant and offers to promote Linda, a waitress at the same restaurant, in return for sexual favors. This is an example of _____.    A.reasonable accommodation   B.glass ceiling   C.disparate treatment   D.prima facie   E.quid pro quo harassment     82.Anna’s boss terminated her employment because she did not submit to his sexual advances. Anna is […]

  11) How can Lisa Dynondo encourage her salespeople to promote the more profitable model? A) Put all sales persons on fixed salary. B) Provide higher sales commissions for higher priced items. C) Provide higher sales commissions for items with the greatest contribution margin per constrained resource. D) Provide higher sales commissions for items which has the lowest cost and lower sales commissions for items […]

    51. The key to a successful downsizing effort is to:  A. perform surgical strategic cuts. B. perform indiscriminant across-the-board cuts. C. downsize at random. D. cut the oldest and best-paid employees first. The key to a successful downsizing effort is to avoid indiscriminant across-the-board cuts, and instead perform surgical strategic cuts that not only reduce costs, but also improve the firm’s competitive position.     52. Which of the […]

  34) Nicholas Company manufacturers TVs. Some of the company’s data was misplaced. Use the following information to replace the lost data:   Analysis Actual Results Flexible Variances Flexible Budget Sales- Volume Variances Static Budget Units Sold 112,500   112,500   103,125 Revenues $42,080 $1,000 F (A) $1,400 U (B) Variable Costs (C) $200 U $15,860 $2,340 F $18,200 Fixed Costs $8,280 $860 F $9,140 […]

    86. Busch, Inc. is a successful company, but has a lower inventory turnover rate than the industry average. Of the following, the most likely explanation is that Busch  A. Has a just-in-time inventory system. B. Uses LIFO (assume rising purchase costs). C. Offers its customers an unusually large selection of merchandise. D. Sells unusually popular items.     87. The gross profit method of valuing inventory:  A. Is the most […]

  17) Stock options give executives the right to buy company stock at a specified price, called the exercise price, within a specified period. 18) Craylon Corp. is planning the 2015 operating budget. Average operating assets of $1,800,000 will be used during the year and unit selling prices are expected to average $100 each. Variable costs of the division are budgeted at $500,000, while fixed […]

  166. The accounts in the ledger of Monroe Entertainment Co. are listed below.  All accounts have normal balances. Accounts Payable 1,500   Fees Earned 3,000 Accounts Receivable 1,800   Insurance Expense 1,300 Investment 2,000   Land 3,000 Cash 2,600   Wages Expense 1,400 Capital Stock 2,500   Retained Earnings  6,300 Dividends 1,200                 Prepare a trial balance.  The […]

  85.Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for the building and for Fontaine’s Capital account are:    A.Building $250,000; […]

  106. Ratchford Clocks manufactures alarm clocks and wall clocks and allocates overhead based on direct labor hour. The production process is set up in three departments: assembly, finishing, and calibrating. The following is information regarding the direct labor used to produce one unit of the two clocks:  Per Unit Hours: Assembly Finishing Calibrating Alarm clocks 3 1 1 Wall clocks 2 3 2   5 […]