114. On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work.  Item Inventory Quantity Unit Cost Price Unit Market Price Product C 420 $6 $5 Product D 370 12 14                         […]

  41. For the year ended December 31, 2012, Burlington Company had cash collections from customers of $50,000, cash paid to employees of $8,000, cash paid to suppliers of $25,000, cash used to retire long-term bonds of $8,000, and cash payments for dividends of $5,000. Cash provided by operating activities for 2012 is:  A. $4,000. B. $9,000. C. $17,000. D. $25,000. 42. The only difference between the cash flow statement prepared […]

  Fill in the Blank Questions  72. Present Value of 1  Periods 3% 4% 5% 6% 7% 8% 9% 10% 12% 3 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7118 4 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6355 5 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 6 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 7 0.8131 0.7599 0.7107 […]

  80.Since an error in the period-end inventory causes an offsetting error in the next period:    A.Managers can ignore the error. B.It is said to be self-correcting. C.It affects only income statement accounts. D.If affects only balance sheet accounts. E.Is immaterial for managerial decision making. 81.The understatement of the ending inventory balance causes:    A.Cost of goods sold to be overstated and net income to be […]

    31.A wrongful discharge suit can be filed as a _____ when the person discharged is a member of a protected group.    A.violation of an implied contract   B.covenant   C.violation of a public policy   D.civil rights infringement   E.violation of employment-at-will     32.Julie’s boss, Ben, believes that women are not capable of making top-level decisions. Julie’s decisions are often sidelined by […]

    51. The first step in theprocedure for preparing the statement of cash flows using a T-account work sheet is to  A. obtain a balance sheet for the beginning of the period of the statement of cash flows. B. obtain a balance sheet for the ending of the period spanned by the statement of cash flows. C. obtain a balance sheet for the beginning and the end of […]

    Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far, Washington has recorded the following transactions involving the Flat TV: Jan. 5 Purchased 8 Flat TVs at a unit cost of $1,400 Jan. 18 Purchased 5 additional Flat TVs at $1,400 […]

    31. Two common ways of retiring bonds before maturity are to (1) exercise a call option or (2) purchase them on the open market.       32. GAAP criteria for identifying a lease as a capital lease are more general than the criteria under IFRS.                       Multiple Choice Questions    33. To provide security to creditors […]

  18) Video Boy has one particular product that has an annual demand of 2,000 units. Total manufacturing costs per unit total $20. Ordering costs for the product total $25 per purchase order. Currently, the carrying costs per unit are 25% of manufacturing costs.   Required: Determine the economic manufacturing order quantity.   19) The IBP Grocery orders most of its items in lot sizes […]

  78. Harbinger Enterprises, Inc.The balance sheet taken from the 2012 10-K of Harbinger Enterprises is provided below.    December 31 Assets: 2012 2011 Current Assets:       Cash $   122,200 $108,000   Accounts receivable 45,000 35,000   Inventory 17,000 14,000   Other current assets 13,000 11,000   Total current assets 197,200 168,000 Long-term Assets:       Property, plant & equipment, net 1,489,800 50,000 […]