44.On April 1, 2016, a firm accepted a 3-month, 10 percent note for $1,800 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended May 31, 2016, is   A.$30. B.$60. C.$150. D.$180. 45.With the accrual basis of accounting, it is appropriate to recognize revenue from a credit sale   A.on the date of the sale. B.on the […]

    21. When determining the amount of interest to be paid on a bond, which of the following information is necessary?  A. The market value of the bonds after one year. B. The selling price of the bonds. C. The stated rate of interest on the bonds. D. The effective rate of interest on the bonds.   22. On January 1, 2012, Action Inc. issued $1,000,000 of 10% bonds at […]

  111. If accounts payable have increased during a period  A. revenues on an accrual basis are less than revenues on a cash basis. B. expenses on an accrual basis are less than expenses on a cash basis. C. expenses on an accrual basis are the same as expenses on a cash basis. D. expenses on an accrual basis are greater than expenses on a cash basis. 112. In calculating cash […]

  Multiple Choice Questions  40.During one month, 3,000 units of a product were completed and 800 units were 20 percent complete and still in process. The equivalent production for the month is    A. 3,800 units.   B. 4,000 units.   C. 3,040 units.   D. 3,160 units.       41.The Finishing department began the period with 3,000 units of a product. During the month, Assembly completed and transferred-out […]

  Answer the following questions using the information below:   At the Todd Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs. Total personnel department costs are $320,000.   DepartmentABC Number of employees30270100 […]

    61. A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:  Domestic unit sales price $21 Unit manufacturing costs:     Variable 12   Fixed 5     What is the differential revenue from the acceptance of the offer? A. $300,000B. $420,000C. $120,000D. $240,000   […]

    21) Under the equity method of accounting for stock investments, the Investment account is decreased for the receipt of a dividend because: A) it is assumed that income will also be received. B) the dividend decreases the investee’s owners’ equity, and therefore the investor’s investment decreases. C) the dividend decreases the investee’s owners’ equity, and therefore the investor’s investment increases. D) no cash […]

  SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 82) Maloney Corporation manufactures plastic water bottles. It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water bottles. Maloney believes that continuously improving its manufacturing processes and […]

  31) What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of October? A) $22,000 B) $44,000 C) $39,200 D) $ 33,000   32) What is the cost of the goods transferred out during October? A) $363,000 B) $330,000 C) $340,000 D) $375,000   33) A reason(s) why “pure” FIFO is rarely encountered in process costing is that: […]

    56. A segment of a business reported a contribution margin of $36,000 and controllable fixed costs of $12,000. If the segment had been eliminated, the company-wide net income would have been  A. $12,000 higher. B. $24,000 lower. C. $36,000 lower. D. $24,000 higher.   57. A segment of a business reported a contribution margin of $36,000 and common costs of $12,000. If the segment had been eliminated, the company-wide […]