131. Which of the following should be reported net of the related income tax effect on the income statement? A. sale of an inventory item at a lossB. loss due to sale of fixed assetsC. loss due to a discontinued operations of the businessD. sale of a temporary investment at a loss   132. Which of the following would appear as an extraordinary item on the income statement? A. loss resulting from […]

  58. A formal written statement of management’s plans for the future, expressed in financial terms, is a:  A. gross profit report B. responsibility report C. budget D. performance report   59. The budget process involves doing all the following except:  A. establishing specific goals B. executing plans to achieve the goals C. periodically comparing actual results with the goals D. dismissing all managers who fail to achieve operational goals specified in the budget   […]

    31) On September 30, 2011, Ace Electronics issued $100,000 of 10-year, 8% bonds at 100. The bonds pay interest semiannually on September 30 and March 31. These bonds sold at 100, which is ________. A) par B) a premium, because the market rate of interest is higher than 8% C) a premium, because the market rate of interest is lower than 8% D) […]

  21) Tim’s Tams donated 100 baseball caps to the local homeless shelter. The company will record the donation as an operating expense. The caps cost Tim’s Tams $2.00 each and the company usually sells them for $8.50. If Tim’s Tams reports a charity expense of $850, this accounting choice would be considered ________. A) conservative B) fundamental C) basic D) aggressive   22) Tom’s […]

  84. Dervish Industries, Inc.The comparative financial statements for Dervish Industries, Inc. are provided below. All amounts are in thousands except for per share amounts.  Statements of Income and Retained Earnings for the Fiscal Years Ended:   June 30, 2012 June 30, 2011 June 30, 2010 Net sales $2,004,719 $1,937,021 $1,835,987 Other income 18,636 17,153 14,614   Total revenues 2,023,355 1,954,174 1,850,601 Cost of goods sold […]

  51. When done properly, how many journal entries are involved in the closing process?  A. 2 B. 3 C. 4 D. 5 52. Which of the following statements is not correct?  A. After closing entries are posted, the revenue, expense, and drawing accounts will have zero balances. B. At the end of each accounting period, asset and liability account balances are reduced to zero. C. A postclosing trial balance will not contain revenue […]

  91. A debit balance in the Allowance for Doubtful Accounts  A. is the normal balance for that account. B. indicates that actual bad debt write-offs have been less than what was estimated. C. cannot occur if the percentage of receivables method of estimating bad debts is used. D. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. 92. To record estimated uncollectible accounts using the allowance […]

    86. Which of the following would NOT represent good controls over cash receipts? a. Record all cash receipts as soon as possible. b. The employee that receives cash and checks should also deposit them in the bank. c. Open mail each day and make a list of checks received with the amount and payer’s name. d. Verify cash receipts by comparing the bank […]

  145.Using the information below, calculate net income for the period.  Sales revenues for the period$1,304,000 Operating expenses for the period$239,000 Finished Goods Inventory, January 136,000 Finished Goods Inventory, December 3141,000 Cost of goods manufactured for the period$540,000    A. $774,000. B. $769,000. C. $530,000. D. $535,000. E. $448,000. 146.An internal control system consists of the policies and procedures managers use to do all of the following except:     A. Urge […]

  21) In selecting capital projects, organizations choose A) the alternative that matches the RRR. B) the alternative that has revenues that exceed its costs. C) the alternative that has the highest revenues. D) the alternative that has the longest time horizon, but also exceeds the RRR. E) the alternative that provides benefits that exceed predicted costs by the greatest amount.   22) The first […]