101. A firm sells two products, A and B. For every unit of A the firm sells, two units of B are sold. The firm’s total fixed costs are $1,612,000. Selling prices and cost information for both products follow. What is the firm’s break-even point in units of A and B?     A. 31,000 of A and 31,000 of B. B. 31,000 of A and 62,000 of […]

    108. Under accrual accounting, salaries earned by employees but not yet paid should be expensed:  A. In the period in which they are earned. B. In the period in which they are paid. C. In the period with the higher earnings. D. In the period with the lower earnings.     109. Under accrual accounting, fees received in advance from customers should be shown as being earned:  A. When cash […]

  101. The International Accounting Standards Board (IASB):  A. Hopes to create harmony among accounting practices of different countries to improve comparability. B. Is the government group that establishes reporting requirements for companies that issue stock to the investing public. C. Has the authority to impose its standards on companies around the world. D. Is the only source of generally accepted accounting principles (GAAP). E. Only applies to companies that are […]

  34.On July 1, 2016, a firm purchased a 1-year insurance policy for $1,800 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2016, is   A.$600. B.$1,050. C.$900. D.$1,800. 35.On May 1, 2016, a firm purchased a 1-year insurance policy for $3,600 and paid the full premium in advance. The insurance expense associated with […]

    101. Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:   Work in process, beginning of period $60,000 Costs added during period:     Direct […]

  150. Outer Limits, Inc. produces fencing units which require two processes, A and B, to complete. The best-selling type of fence is made of pvc. Information related to the 8,000 units of pvc fencing produced annually is shown below.  Direct materials $450,000 Direct labor   Department A (5,000 DLH x $23 per DLH) $115,000 Department B (4,000 DLH x $25 per DLH) $100,000 Machine […]

    141. An August sales forecast projects 6,000 units are going to be sold at a price of $10.50 per unit. The desired ending of units is 15% higher than the beginning inventory of 1,000 units.  Total August sales are anticipated to be:   A. $67,500 B. $63,000 C. $60,000 D. $62,500   142. A department store has budgeted sales of 12,000 men’s suits in September.  Management wants to have […]

  107. A company has 500 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $60 per share. It also has 20,000 shares of common stock outstanding, and the total value of its stockholders’ equity is $680,000. The company’s book value per common share equals:  A. $31.71. B. $32.50. C. $32.75. D. $33.17. E. $60.00. 108. The Discount on Common Stock account reflects:  A. The […]

  14) Allan and Rick are partners who share profits and losses in the ratio of 3:2. They have capital balances of $40,000 and $30,000, respectively. If Tammy invests $25,000 for one-third interest, Tammy’s capital balance will be: A) $25,000. B) $23,750. C) $31,667. D) $21,667.   15) Nathan invests $2,000 for 10% interest in a partnership that has total capital of $15,000 after admitting […]

    71.A high level of pay relative to that of competitors can ensure that _____.    A.the company’s overall labor costs are low   B.employees are highly satisfied with the work   C.the organization is always in the growth stage   D.organizational productivity is satisfactory   E.the company attracts high-quality employees     72.A company that follows an overall cost leadership strategy _____.    A.focuses on […]