179. On January 1, 2010, Cary Parsons established a catering service.  Listed below are accounts she would like to open in the general ledger. List the accounts in the order in which they should appear in the ledger and propose a two-digit account numbering scheme that is consistent with the rules of a proper chart of accounts.  1.Cash 2.Supplies 3.Equipment 4.Accounts Payable 5.Capital Stock 6.Wages […]

  91. Yamaguchi Company’s break even point in units is 1,000. The sales price per unit is $10 and variable cost per unit is $7. If the company sells 2,500 units, what will net income be?  A. $4,500 B. $7,500 C. $17,000 D. $35,000 E. Fixed costs must be known in order to predict net income. 92. Mueller Corp. manufactures compact discs that sell for $5.00. Fixed costs are $28,000 and variable […]

  66) The manufacturing labor budget depends on wage rates, production methods, and hiring plans.   67) If inventoriable costs in the operating budget are going to be in accordance with Generally Accepted Accounting Principles (GAAP), they include only variable manufacturing costs.   68) Activity-based budgeting provides better decision-making information than budgeting based solely on output-based cost drivers (units produced, units sold, or revenues).   […]

  81. The management of Douglass Corporation is considering the purchase of a new machine costing $375,000. The company’s desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation:  Year Income fromOperations Net CashFlow 1 […]

  51) What were the sales for Beta Division? 51) ______ A) $7,151,800 B) $4,333,333 C) $5,952,380 D) $6,500,000 E) $6,326,787 Use the information below to answer the following question(s).   Brandorf Company has two sources of funds-long term debt with a market and book value of $9 Million issued at an interest rate of 10 percent, and equity capital that has a market value […]

  11) Cost items that do not change between the alternative choices involved in the decision are not relevant to the decision to be made as they will be incurred no matter which alternative is chosen.   12) An expected value is the weighted average of the outcomes, with the probability of each outcome serving as the weight. 13) The last step in the decision […]

    97. During the year, Victory Solutions: (1) received cash of $5,000 billed to a customer in 2014; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issued; (4) paid dividends of $8,000 to its stockholders; (5) borrowed $40,000 from a local bank; and (6) purchased its own shares of common stock for $10,000. What is Victoria Solution’s […]

  119. Madison Corporation purchased 40% of Jay Corporation for $125,000 on January 1. On June 20 of the same year, Jay Corporation declared total cash dividends of $30,000. At year-end, Jay Corporation reported net income of $150,000. The balance in Madison Corporation’s Long-Term Investment-Jay Corporation account as of December 31 should be:  A. $ 77,000. B. $125,000. C. $173,000. D. $197,000. E. $370,000. 120. Pravis Corporation owns 30% of Kuster Corporation. […]

    101. Which of the following is/aretrue? A. U.S. GAAP and IFRS allow firms to choose whether to designate a particular derivative as a hedge, and therefore eligible for hedge accounting. B. Firms remeasure derivatives not designated as a hedge to fair value at every balance sheet date and include changes in fair value in net income. C. For a derivative designated as a hedge, firms must further designate […]

  11) The adjusting entry to record the amount of interest owed on a bond affects how many of the financial statements? A) one B) two C) three D) four   12) If a bond is sold at a premium, the carrying value reported on the balance sheet in subsequent years ________. A) stays the same each year B) increases each year C) decreases each […]