Objective 19.4   1) Which of the following is an advantage of COQ measures? A) They help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs. B) They detect and provide immediate short-run feedback on whether quality-improvement efforts are succeeding. C) They forecast customer satisfaction and employee satisfaction, which are useful indicators […]

  11.A machine with a 10-year useful life is being depreciated on a straight-line basis for financial statement purposes, and over 5 years for income tax purposes under the accelerated recovery cost system. Assuming that the company is profitable and that there are and have been no other timing differences, the related deferred income taxes would be reported in the balance sheet at the end […]

    41. The entry to record the declaration of a cash dividend consists of a debit to  A. Dividend Expense and a credit to Cash. B. Retained Earnings and a credit to Common Stock Dividend Distributable. C. Dividends Payable and a credit to Retained Earnings. D. Retained Earnings and a credit to Dividends Payable.   42. A liability for the payment of cash dividends is recorded  A. on the date the […]

  ESSAY. Write your answer in the space provided or on a separate sheet of paper. 88) Describe the benefits to an organization of preparing an operating budget.     89) Winnie and Pooh have just purchased a small honey manufacturing company that was having financial difficulties. After a brief operating period, they decided that the company’s main problem was lack of any financial planning. […]

  91. A system of accounting in which the costs of each process are accumulated and then assigned to the units of product that passed through the process is a:  A. General cost accounting system. B. Process cost accounting system. C. Job order cost accounting system. D. Manufacturing cost accounting system. E. Goods in process accounting system. 92. A company that applies process costing is most frequently characterized by:  A. Low standardization and […]

  83.All of the following regarding the current ratio are true except:    A.Current ratio is calculated by dividing current assets by current liabilities. B.Current ratio helps to assess a company’s ability to pay its debts in the near future. C.Current ratio does not affect a creditor’s decision on whether to allow a company to buy on credit. D.Current ratio can affect a creditor’s decision about […]

  91. The amount recorded for merchandise inventory includes all of the following except:  A. Purchase discounts. B. Returns and allowances. C. Freight costs paid by the buyer. D. Freight costs paid by the seller. E. Trade discounts. 92. A company uses the perpetual inventory system and recorded the following entry    This entry reflects a:  A. Purchase of merchandise on credit. B. Return of merchandise. C. Sale of merchandise on credit. D. Payment of the […]

  64) What is the “operating income” assuming 250 people attend and option two is chosen? 64) ______ A) $620 B) $4,620 C) $2,900 D) $2,750 E) $7,329 65) How many people must purchase tickets assuming option two is chosen, and Big Sports expects to raise $4,820 for the athletic fund? Assume no one pays more than the cost of his/her ticket. 65) ______ A) […]

  Multiple Choice Questions   31. Purchases of merchandise are  A. debited to Merchandise Inventory. B. credited to Merchandise Inventory. C. debited to Purchases. D. credited to Sales.   32. On the financial statements prepared at the end of an accounting period, the merchandise inventory is shown as  A. a liability on the balance sheet. B. revenue on the income statement. C. an asset on the balance sheet. D. an addition to capital on the […]

    41.The consistency in the ratings given by two different individuals who evaluate an employee’s performance is known as _____ reliability.    A.internal consistency   B.interrater   C.inter-method   D.test-retest   E.parallel-forms     42.A measure that results in drastically different ratings over time lacks _____ reliability.    A.internal consistency   B.interrater   C.parallel-forms   D.test-retest   E.inter-method     43.Which of the following statements best […]