71. Everything Pets is attempting to determine the cost of operating a particular store. Which of the following costs would be classified as an indirect cost?  A. Salary of store manager B. Cost of operating company owned vehicles C. Fees paid to accountant for preparation of tax returns D. Cost of aquariums used to display exotic fish 72. Which of the following is an appropriate cost driver for allocating indirect […]

    131. The Crafter Company had the following assets and liabilities as of December 31, 2012:  ASSETS   Cash $35,000 Accounts receivable 15,000 Inventory 30,000 Equipment 50,000     LIABILITIES   Current portion of long-term debt 10,000 Accounts payable 2,000 Long-term debt 25,000     Determine the quick ratio for the end of the year (rounded to one decimal point). A. 6.7B. 13.0C. 4.2D. 3.5   132. Garrett Company sells merchandise […]

    161.Refer to the information above. Assume Apex borrows $2 million to finance its expansion. Apex’s debt ratio immediately after the borrowing will be:    A..10.   B..20.   C..33 (rounded).   D..18 (rounded). $4/$22 = .18       162.Refer to the information above. What is the approximate maximum amount Apex can borrow and not exceed a debt ratio of .3?    A.$4,000,000.   B.$5,500,000. […]

  6) Organization costs are: A) part of the company’s start-up and are listed as expenses. B) listed as an intangible asset on the balance sheet. C) a current asset on the balance sheet. D) another expense on the income statement.   7) Revenue earned by the business was recorded as additional paid-in capital. This error would cause: A) the period’s net income to be […]

  5) What criteria are available in determining which of two alternate cost function estimates is better for a particular management decision? A) goodness of fit B) economic plausibility C) the significance of the difference between the costs associated with the highest and lowest observations of the cost driver D) the significance of the difference between the unit values for the highest and lowest observations […]

  11) Given this change in the cost structure: A) The costing results for chess pieces under the new system depend on the adequacy and quality of the estimated cost drivers and costs used by the system. B) Chess pieces have benefited from the new system. C) Chess pieces are definitely more accurately costed. D) Chess will now have a lower sales price. 12) The […]

  164.Morris Company uses special journals to record transactions. Below are the sales journal and cash receipts journal for Morris. Prepare the following: a. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to the subsidiary ledger. b. Open an Accounts Receivable controlling T-Account. Post the end-of the month totals that affect the Accounts Receivable account only. c. Prepare […]

    41. Sam Jones was terminated from his job with no explanation or consideration of why he was let go. It is likely that Sam has not experienced:  A. procedural justice. B. outcome fairness. C. interactional justice. D. alternative dispute resolution. Interactional justice is a concept of justice referring to the interpersonal nature of how the outcomes were implemented.     42. In many documented cases, after giving employees the […]

  81. Lanley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are: A. $61,875B. $33,875C. $24,750D. cannot be determined from the data given 82. Which of the following statements is true regarding fixed and […]

    131. Gains and losses on the purchase and resale of treasury stock may be reflected only in  A. paid-in capital accounts. B. paid-in capital and retained earnings accounts. C. income, paid-in capital, and retaining earnings accounts. D. income and paid-in capital accounts. E. None of these answer choices is correct.   132. At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as […]