51. If Teague wishes to earn $1,250 on the special order, the size of the order would need to be:A.  4,500 unitsB.  2,250 unitsC.  1,125 unitsD.  625 unitsE.  300 units     52. Textel is thinking about having one of its products manufactured by a subcontractor. Currently, the cost of manufacturing 1,000 units follows:  Direct material $45,000 Direct labor 30,000 Factory overhead (1/3 […]

    141. After net income is entered on the work sheet, the Balance Sheet Debit and Credit columns must  A. be the same amount as the total amount of the Income Statement Debit and Credit columns B. equal each other C. be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns D. not be equal to each other and need not be […]

  31) Which of the following sequences of events is in the correct order for a voucher system? A) Recording, preparing, posting, and paying the voucher B) Posting, preparing, paying, and recording the voucher C) Preparing, paying, posting, and recording the voucher D) None of the above is the correct order.   32) Important control features provided by a voucher system: A) assure only approved […]

  Multiple Choice Questions   31. Which of the following statements is false?  A. Stockholders have a residual claim on assets in the event of liquidation. B. Shares of stock held in the treasury are deducted from the number of issued shares in the determination of the number of outstanding shares. C. Common stockholders have voting rights at annual stockholder meetings. D. Corporations are governed by their stockholders. 32. RKJ Company […]

  45) The income tax amortization method referred to as CCA 45) ______ A) allows a corporation some flexibility in choosing Class an asset is assigned to. B) allows amortization over the asset’s useful life as determined by management. C) ignores estimated salvage value. D) pertains to non-profit organizations as well as for-profit organizations. E) provides an organization some flexibility in choosing a method of […]

  94.Which of the following is true regarding pension accounting and reporting for state and local governments? A)When the General Fund makes a contribution to a pension trust fund, the account “Expenditures” is debited. B)The Statement of Changes in Fiduciary Net Assets reports “additions” and “deductions,” computed on the accrual basis. C)Both of the above. D)Neither of the above. 95.When accounting for other postemployment benefits, […]

  55) Journalize the following transactions for The Computer Store. The Computer Store uses the allowance method of accounting for uncollectible receivables.   April 5The Computer Store sells $3,200 of computer equipment on account to Jane Doe.   June 5Jane Doe pays The Computer Store $2,000 of the amount she owes.   July 7After repeated attempts to collect the balance due from Jane Doe fail, […]

    61. Super Short Shorts estimates that unsold women’s clothing with a carrying value of $500 million has minimal market value given a change in fashion. To reflect the minimal market value of the merchandise, Super Short Shorts   A. would record an impairment loss of $500 million, reducing the carrying value of this inventory to zero. B. would recognize zero cost of goods sold and a […]

    102. The net income reported on the income statement for the current year was $250,000.  Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively.  Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:    End Beginning Cash $  50,000 $  60,000 Accounts receivable 112,000 108,000 Inventories […]

    50. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.   Overhead Direct LaborHours (dlh) Product  A   B  Painting Dept. $248,000 10,000 […]