82. Match the accounting terms with the description by entering the proper number.  1. Stock that conveys to its owners the right to receive the preference dividend for the current year and any prior years in which the preference dividend was not paid before common stockholders receive any dividends       Subscribers’ ledger      2. The form by which capital stock is issued; the certificate indicates the name of […]

  26) For next year, Manzo, Inc., has budgeted sales of 30,000 units, target ending finished goods inventory of 1,500 units, and beginning finished goods inventory of 900 units. All other inventories are zero. How many units should be produced next year? A) 29,400 units B) 30,000 units C) 30,600 units D) 32,400 units 27) Wilcox Company has budgeted sales volume of 60,000 units and […]

  101. Use the following information and the indirect method to calculate the net cash provided or used by operating activities:     A. $12,700. B. $13,900. C. $20,900. D. $28,400. E. $35,900. 102. In preparing a company’s statement of cash flows for the most recent year on the indirect method, the following information is available:    Net cash provided by operating activities was:  A. $120,000. B. $44,000. C. $70,000. D. $84,000. E. $30,000. 103. A machine with a […]

  108) Divide the class into teams of three or four people. Each team member should work the following problem separately outside of class. Then give the students time in class to compare answers with their teammates and put together a final, correct copy of the problem. Each team should turn in only one copy of the problem for grading. All team members will receive […]

    41. Expenditures that increase the expected useful life or productivity of the asset are:   A. committed expenditures. B. revenue expenditures. C. current expenditures. D. capital expenditures.   42. A capital expenditure results in a debit to:   A. an expense account. B. a stockholders’ equity account. C. a liability account. D. an asset account.   43. Which of the following is an example of a capital expenditure?  A. Cleaning the carpet in the front […]

    91. Use the following information in the adjusted trial balance for Stockton Company to answer Questions 16-20.  Stockton Company Adjusted Trial Balance For the Year ended December 31, 2010       Cash $  6,030   Accounts Receivable 2,100   Prepaid Expenses    700   Equipment 13,700   Accumulated Depreciation   $  1,100 Accounts Payable   1,900 Notes Payable   4,200 Capital Stock   […]

  31) Assume the transfer price for a pair of soles is 180% of total costs of the Sole Division and 40,000 of soles are produced and transferred to the Assembly Division. The Sole Division’s operating income is: A) $320,000 B) $360,000 C) $248,000 D) $440,000 E) $400,000 32) If the Assembly Division sells 100,000 pairs of shoes at a price of $60 a pair […]

  Multiple Choice Questions  67. The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter are called:  A. Minimum legal capital. B. Stock subscriptions. C. Organization expenses. D. Selling expenses. E. Prepaid fees. 68. The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a:  A. Preemptive right. B. Proxy right. C. Right to […]

  41) FIFO Aluminum processes a single type of aluminum. During the current period the following information was given:     Units Material Costs Conversion Costs Beginning Inventory 3,000 $4,500 $4,800 Started During the Current Period 20,000 48,000 65,000 Ending Inventory 2,500       All materials are added at the beginning of the production process. The beginning inventory was 30% complete as to conversion, […]

    92. On the statement of cash flows, the cash flows from financing activities section would include   A. receipts from the sale of investments B. payments for the acquisition of investments C. receipts from a note receivable D. receipts from the issuance of capital stock   93. On the statement of cash flows, the cash flows from financing activities section would include all of the following except   A. receipts […]