161. Which of the following is/are true concerning an employee stock options’ benefit element? A. One cannot measure the amount of the benefit element before the exercise date. B. Stock options with exercise prices less than the current market price of the stock have a higher value, other things equal, than stock options with exercise prices exceeding the current market price of the stock.C. Stock options that are […]

  157. Fill in the missing numbers using the formula for Fixed Asset Turnover:    Company A Company B Company C Company D Net Sales $5,000,000 $720,000 $900,000 ? Beginning Fixed Assets $450,000 $275,000 ? $380,000 Ending Fixed Assets $800,000 ? $310,000 $420,000 Fixed Asset Turnover ? 2.4 times 3 times 2.6 times                       158. Williams Company […]

  36) For January, budgeted gross margin is: A) $100,000 B) $140,000 C) $60,000 D) $50,000   37) For January, the amount budgeted for the nonmanufacturing costs budget is: A) $78,000 B) $10,000 C) $168,000 D) $18,000 38) Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:   T-SHIRTSSWEATSHIRTS Production and sales volume60,000 units35,000 units Selling price$16.00$29.00 Direct material$ […]

    56. Ruben Company purchased $100,000 of Evans Company bonds at 100.  Ruben later sold the bonds at $104,500 plus $500 in accrued interest.  The journal entry to record the sale of the bonds would be:  A. Debit: Cash $105,000; Credit: Investment in Bonds $104,500 and Interest Revenue $500 B. Debit: Cash $105,000; Credit: Investment in Bonds $100,000 and Gain on Sale of Investments $5,000 C. Debit: Cash […]

  11) Which of the following is one of Michael Porter’s five competitive forces? A) the bargaining power of suppliers B) the bargaining power of the government C) the threat of industrial slowdown D) the threat of technological obsolescence 12) Which of the following is a difference between internal comparison and external comparison with regard to financial statement analysis? A) An internal comparison reveals unexpected […]

    41. The usual entry to record the conversion of convertible bonds or preferred stock into common shares ignores _____ and shows the swap of common shares for bonds or preferred stock at their _____.  A. current market prices; carrying value B. carrying value; current market prices C. current market prices; par value D. carrying value; par value E. present value of future cash flows; current market prices   42. Which […]

Question During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles. May 1 Paid rent for May, $5,000. 3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. 4 Paid freight on purchase of […]

    91.  On August 31, 2013, Victory Corporation’s common stock is priced at $30 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows. Assume that the company declares and immediately distributes a 15% stock dividend.     Common stock—$7 par value, 95,000 shares authorized, 38,000 shares issued and outstanding $ 266,000     […]

    61) Avatar, Inc. bought a machine on January 1, 2011 for $96,000. The machine is expected to last for 8 years, after which it will be worthless. What is the book value of the machine on Avatar’s balance sheet at December 31, 2011? A) $96,000 B) $16,000 C) $12,000 D) $84,000   62) Avatar, Inc. bought a machine on January 1, 2011 for […]

  134. Williams Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May:  May 2 Purchased $25,000 of merchandise inventory on credit from the Sioux City Company, terms 2/10, n/30. Invoice dated May 1. May 3 Purchased $12,000 of merchandise inventory on credit from the Wichita Company, terms 2/10, […]