44. Doogle Corporation sold a segment of its operations in 2009 and suffered an extraordinary loss in 2010. Which of the following would be the most useful in attempting to predict Doogle’s performance for 2011?  A. Doogle’s income from continuing operations in 2009 and 2010. B. Doogle’s net income in 2009 and 2010. C. Doogle’s total assets at the end of 2010. D. Doogle’s retained earnings at the […]

    131. Use the following information to answer questions 44-46.  Accounts payable $  30,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 25,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000     Based on the above data, what is the quick ratio, rounded to one decimal point? A. 2.2B. 3.5C. 3.0D. 1.6   […]

    70.Physical counts of inventory:     A.Are not necessary under the perpetual system.   B.Are necessary to adjust the Inventory account to the actual inventory available.   C.Must be taken at least once a month.   D.Requires the use of hand-held portable computers.   E.Are not necessary under the cost-to-benefit constraint.         71.During a period of steadily rising costs, the inventory […]

    41. This measurement attribute is used in U.S. GAAP to measure inventories whose usefulness (typically, in terms of salability) to the firm has declined below the cost of the inventories.   A. Current Replacement Cost B. Net Realizable Value C. Fair Value D. Present Value of Future Net Cash Flows E. Acquisition cost   42. _____ is the net cash (selling price less selling costs) that the firm would receive […]

41) Referring to Table 9-4, under the percent-of-accounts-receivable method, the bad-debt expense for the period would be: A) $33,000. B) $28,500. C) $37,500. D) $30,000.   42) Lester Company uses the allowance method and estimates its bad-debt expense based on aging the receivables. Before the adjusting entry, the allowance for doubtful accounts had a $425 debit balance. Based on aged receivables, Lester estimates that $3,700 […]

    101.Refer to the information above. Compute the cost of goods sold for the current year based on the FIFO method of inventory valuation.    A. $12,500.   B. $29,175.   C. $10,975.   D. $27,650. $40,150 – $12,500 = $27,650       102.Refer to the information above. Compute the cost of the ending inventory based on the average-cost method of inventory valuation. (Round your final answer to […]

  31) What is the flexible-budget amount? A) $248,033 B) $252,000 C) $248,000 D) $279,000 32) What is the variable overhead spending variance? A) $4,500 unfavorable B) $3,937.50 unfavorable C) $4,500 favorable D) $3,937.50 favorable   33) What is the variable overhead efficiency variance? A) $3,937.50 favorable B) $3,937.50 unfavorable C) $4,500 favorable D) $4,500 unfavorable   34) What is the total variable overhead variance […]

    31. When using the plantwide overhead rate method, total budgeted overhead costs are combined into one overhead cost pool.         32. Kinetic Company estimates that overhead costs for the next year will be $1,600,000 for indirect labor and $400,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 50,000 direct labor hours are planned […]

    91. The primary difference between a cash flow statement prepared using the indirect method and one prepared using the direct method is  A. the financing section is different. B. the investing section is different. C. the operating section is different. D. all three sections of the cash flow statement are different. E. the investing and financing sections are different.   92. If the balance sheet shows the same beginning and […]

    41.Suppose a number of your friends have organized a company to develop and sell a new software product. They have asked you to loan them $8,000 to help get the company started, and have promised to repay your $8,000 plus 10% interest in one year. Of the following, which amount may be described as the return on your investment?    A.$8,000   B.$800   […]