126.A company has net sales of $752,000 and cost of goods sold of $543,000. Its net income is $17,530. The company’s gross margin and operating expenses, respectively, are:    A.$209,000 and $191,470   B.$191,470 and $209,000   C.$525,470 and $227,000   D.$227,000 and $525,470   E.$734,000 and $191,470 Gross Margin = Net Sales – Cost of Goods Sold; $752,000 – $543,000 = $209,000Operating Expenses […]

  Multiple Choice Questions   The following transactions occurred during June, the first month of operations for Accurate Manufacturing.: * Issued 60,000 shares of capital stock to the owners of the corporation in exchange for $600,000 cash. * Purchased a piece of land for $250,000, making an $80,000 cash down payment and signing a note payable for the balance. * Made a $100,000 cash payment […]

    41. A firm computes ROA, profit margin for ROA, and total assets turnover for each segment using the segment disclosures. The amounts for these ratios computed at a segment level differ from those at a corporate level for which of the following reason(s)?  A. The numerator of ROA at a firm-wide level includes all revenues and expenses except interest expense net of taxes, whereas the […]

  43.Most states require that the employer file the state return for unemployment taxes   A.monthly. B.quarterly. C.annually. D.each payroll period. 44.Tax returns for the federal unemployment tax are due   A.weekly. B.monthly. C.quarterly. D.annually. 45.This preprinted government form is used to report federal unemployment taxes.   A.Form 940 B.Form 941 C.Form 8109 D.Form W-2 46.All of the following are internal control procedures that are recommended to protect […]

  51) Hoover Company has a long-term note payable for $300,000 on January 1, 2012. Each month the company is required to pay $75,000 on the note. How will this note be reported on January 31, 2012? A) Long-term liability, $300,000 B) Long-term liability, $225,000 C) Current liability, $75,000; long-term liability, $225,000 D) Current liability, $225,000; long-term liability, $75,000 52) Potential liabilities that depend on […]

  56.The statement of cash flows reports:    A. Assets, liabilities, and equity. B. Revenues, gains, expenses, and losses. C. Cash inflows and cash outflows for an accounting period. D. Equity, net income, and dividends. E. Changes in equity. 57.The statement of cash flows reports all but which of the following:    A. Cash flows from operating activities. B. Cash flows from financing activities. C. Cash flows from investing activities. D. Significant noncash financing and investing […]

  41. Which of the following is not a result of following a well-designed budgeting process?  A. Improved decision-making processes. B. Improved performance evaluations. C. Improved coordination of business activities. D. Assurance of future profits. E. All of these are benefits of effective budgeting. 42. Which of the following is a benefit derived from budgeting?  A. Budgeting focuses management’s attention on the future. B. Budgeting provides coordination of departments. C. Budgeting provides a basis for […]

  121. Brig Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals:  A. $770,000. B. $115,000. C. $390,000. D. $402,000. E. $408,000. 122. Brig Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Net income […]

  5) Custer.com Company’s outstanding stock is 100 shares of $100, 6% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock. Custer paid $2,000 cash dividends including one-year dividends in arrears to preferred stockholders. Common stockholders received: A) $0. B) $800. C) $1,818. D) $600.   6) Alpha Corporation’s has 1,500 shares of $40 par, 7% cumulative preferred stock and 2,200 […]

    41. Airport Gift Mart, Inc. reported the following amounts in its financial statements:    2012 2011 Average inventory $   330,000 $   250,000 Cost of goods sold 5,940,000 5,500,000       From 2011 to 2012, the company’s efficiency in managing inventory is: A. declining, because the inventory turnover ratio is decreasing.B. improving, because the inventory turnover ratio is increasing.C. declining, because the inventory turnover ratio is increasing.D. improving, because […]