141. The accounting for stock options is complex because firms often include  A. service, only. B. combinations of service and performance, only.C. combinations of service, performance, and market conditions, only.D. combinations of service, performance, and market conditions and firms can restructure their plans. E. none of the above.   142. The accounting for employee stock options involves the firm debiting _____  and crediting _____ for the amortized amount of the […]

  Learning Objective 9-4   1) The following information is from Cashew, Inc.’s December 31, 2011 annual report:     Income statement Balance sheet     12/31/11 12/31/10 Sales revenue $90,000     Accounts receivable   $8,000 $10,000 Salary expense $30,000     Salary payable   $2,000 $3,000   Cash collected from customers on Cashew, Inc.’s statement of cash flows equals ________. A) $90,000 B) […]

    71. Sea Company reports the following information regarding its production cost.  Units produced 42,000 units Direct labor $35 per unit Direct materials $28 per unit Variable overhead $17 per unit Fixed overhead $105,000 in total Compute production cost per unit under variable costing.A.  $28.00B.  $82.50C.  $80.00D.  $63.00E.  $35.00     72. Sea Company reports the following information regarding its production cost:  Units produced […]

    107. The accounts receivable turnover rate:  A. Indicates how many times the receivables were converted into cash during the year. B. Is computed by dividing average receivables by sales. C. Indicates the average number of days a business waits to make collection on a credit sale. D. Indicates the proportion of a company’s accounts receivable that the independent auditors were unable to confirm.     108. The accounts receivable […]

  21) Material left over when making a product is referred to as A) reworked units. B) spoilage. C) scrap. D) defective units. E) indirect material.   Use the information below to answer the following question(s).   Waldorf Computer Systems, Inc. manufactures computer memory cards, and uses process-costing. All direct materials are added at the inception of the production process. The accounting department noted that […]

  51) Factors that are relevant in a JIT system, but not for the EOQ model, include 51) ______ A) stockout costs. B) quality of materials. C) carrying costs. D) quality of materials, timeliness of deliveries, and stockout costs. E) timeliness of deliveries. 52) Which of the following would be expected when using a supply-chain approach to inventory management? 52) ______ A) fewer rush orders […]

  101. Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. Determine the 2nd year’s depreciation using straight-line depreciation.  A. $26,000 B. $24,800 C. $12,400 D. $13,000 102. Which of the following is true?  A. If using the double-declining-balance the total amount of depreciation expense during the life of the […]

    124. Which of the following accounts will NOT be involved in closing entries? a. Prepaid Insurance. b. Service Revenue. c. Utilities Expense. d. Retained Earnings.     125. When a company prepares closing entries, which one of the following is NOT a correct closing entry? a. Debit Retained Earnings; credit Salaries Expense. b. Debit Dividends; credit Retained Earnings. c. Debit Service Revenue; credit […]

  43. A pricing strategy that sets the price at a premium under the assumption that people will pay more for the product because of the product’s brand name, media attention, or some other reason that has piqued the interest of the public is known as:  A. cost-plus pricing. B. premium pricing. C. prestige pricing. D. target pricing. 44. Craddock Company plans to introduce a new product. A market research specialist […]

    101. Use the data for Wall Nuts, Inc. to compute departmental overhead rates based on machine hours in Department A and machine hours in Department B. A.  $4.50 per MH in Dept A; $4.50 per MH in Dept B.B.  $7.50 per MH in Dept A; $7.50 per MH in Dept. B.C.  $4.50 per MH in Dept A; $7.50 per MH in Dept B.D.  […]