41. Assume that you are visiting Mexico for a business meeting and you call your host by his first name rather than his title. He seems offended. Your offense most likely stemmed from a difference between the U.S. culture and Mexico’s culture on which dimension?  A. Individualism/collectivism B. Uncertainty avoidance C. Power distance D. Long-term/short-term orientation Power distance, concerns how a culture deals with hierarchical power relationships—particularly the […]

    94. When bonds are issued at a discount and the effective interest method is used for amortization, at each interest payment date, the interest expense: a.Increases. b.Decreases. c.Remains the same. d.Is equal to the change in book value.   95. When bonds are issued at a premium and the effective interest method is used for amortization, at each interest payment date, the interest […]

  101. An asset’s book value is $18,000 on June 30, Year 6. The asset is being depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 7 for $15,000, the company should record:  A. A loss on sale of $1,500. B. A gain on sale of $1,500. C. Neither a gain nor a loss is recognized on this […]

  15) Joyful Praises Corporation has total advertising expenses of $84,000: $32,000 for radio advertising and $52,000 for print advertising. The print advertising is allocated to Departments A and B based on net sales generated in each department. Department A has net sales of $558,000 and Department B has net sales of $186,000. How much of the print advertising should be allocated to Department A? […]

    51. Rate of return on common shareholders’ equity (ROCE)  A. measures a firm’s performance in using and financing assets to generate earnings and explicitly considers financing costs. B. a measure of profitability that incorporates the results of operating, investing, and financing activities. C. equals net income (less dividends on preferred stock, if any) divided by average common shareholders’ equity. D. all of the above E. none of the above […]

    88.A debit is used to record which of the following?     A. A decrease in an asset account.   B. A decrease in an expense account.   C. An increase in a revenue account.   D. An increase in a contributed capital account.   E. An increase in the dividends account.         89.A credit entry:    A. Increases asset and expense accounts, and decreases liability, stockholders’ equity, […]

  96.A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead):  PlusMax Units produced20016,000 Batch size (units)10400 Number of setups2040 Direct labor hours per unit55 Total direct labor hours1,00080,000 Cost per setup$1,080 Total setup cost$64,800 With traditional two-stage allocation of overhead costs, using direct labor hours as the allocation base, the […]

  31) ______ A) $4,920 B) $4,120 C) $4,800 D) $120 E) $4,680 32) The difference between the actual amount of variable overhead incurred and the budget amount allowed for actual output achieved is 32) ______ A) the sales-volume variance. B) the price variance. C) the flexible budget variance. D) the variable overhead spending variance. E) the efficiency variance. 33) Cady Machine Shop used 15,000 […]

  1.Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which the a.Investor sells the investment b.Investee declares  a dividend c.Investee pays a dividend d.Earnings are reported by the investee in its financial statements 2.Pence Corporation, which accounts for its investments in the common stock of Walsh Company by the equity method, should ordinarily […]

  SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 71) Designing an accounting based performance measure requires six steps. List each step. For three of the steps, describe a question that must be resolved as part of the implementation process. 71) _____________ 72) Batman Abstract Company has three divisions that operate autonomously. Their results for 2007 are […]