31. Firms treat expenditures as assets when they:  A. have acquired rights to the future use of a resource as a result of a past transaction or event. B. can reliably measure the cost of the expected benefits at the time of initial recognition. C. can exercise the entity’s right to, or control of, the benefit. D. can obtain the future service potential and control others’ access to […]

    91. A company established a direct material standard of 2 pounds of material at a cost of $6 per pound for unit produced. During August the company produced 6,000 units of product. 10,000 pounds of direct material which cost $6.50 per pound were used in the production process.  Compute the direct material quantity variance for August.A.  $5,000 unfavorableB.  $12,000 unfavorableC.  $5,000 favorableD.  $12,000 […]

    67.A change in an accounting estimate is:    A.Reflected in past financial statements.   B.Reflected in future financial statements and also requires modification of past statements.   C.Reflected in current and future years’ financial statements, not in prior statements.   D.Not allowed under current accounting rules.   E.Considered an error in the financial statements.         68.When originally purchased, a vehicle costing […]

    104. What pricing concept is used if all costs are considered and a fair markup is added to determine the selling price?  A. total cost concept B. demand-based concept C. variable cost concept D. fixed cost concept   105. Which equation better describes Target Costing?  A. Selling Price – Desired Profit = Target Costs B. Selling Price – Target Costs = Profit C. Target Variable Costs + Contribution Margin = Selling Price […]

31) Referring to Table 7-1, when will the cash receipt be posted to Carter Company’s account receivable account in the accounts receivable subsidiary ledger? A) on April 30, because special journals are always posted monthly B) on April 1, because subsidiary ledgers are posted daily C) anytime, it doesn’t matter when subsidiary ledgers are posted D) at the end of the next accounting period 32) […]

  MULTIPLE CHOICE   54.Noncash investing and financing transactions   a. appear in both the investing and financing activities sections. b. appear in either the investing or financing activities section, but not both. c. appear as a separate schedule on the statement of cash flows. d. are excluded from the statement of cash flows.       55.Cash equivalents do not include   a. commercial […]

  32. Which HRM domain includes affirmative action/diversity, promotion/separation, and orientation? A) Organizational design B) Performance management and appraisal C) Staffing D) Reward systems and compliance E) Employee training and organizational development 33. Which domain would include assessment of an individual, or a department’s, degree of success in meeting or exceeding predetermined levels of productivity and/or quality. A) Organizational design B) Staffing C) Performance management […]

    151. On September 1, the company pays rent for twelve months in advance and debits an asset account.  At year end, the adjusting entry on the work sheet would A. increase an expense accountB. decrease a liability accountC. increase an asset accountD. decrease an expense account   152. On March 1, a company collects revenue in advance for the next twelve months and credits a liability account.  The adjusting entry […]

  Objective 5.5   1) Put the following ABC implementation steps in order ________. ACompute the allocation rates. BCompute the total cost of the products. CIdentify the products that are the cost objects. DSelect the cost allocation bases. A) DACB B) DBCA C) BADC D) CDAB 2) ________ is considered while choosing a cost allocation base for activity costs in ABC costing. A) Marketing strategy […]

  Multiple Choice       51. Real Angus Steakhouse purchased land for $75,000 cash. They also incurred commissions of $4,500, property taxes of $5,000, and title insurance of $800. The $5,000 in property taxes includes $4,000 in back taxes paid by Real Angus on behalf of the seller and $1,000 due for the current year after the purchase date. For what amount should Real […]