60.GASB Statement 34 requires enterprise funds to be used under which of the following circumstances? A)When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges. B)When debt is backed by the full faith and credit of the government issuing it. C)When a government is restricted by grant covenants to cover the […]

  8.4   Integrate the fixed and variable overhead cost variance analyses to reconcile the actual overhead incurred with overhead allocated.   1) Identifying the reasons for variances is important because it helps managers plan for corrective action. 2) Effective planning of variable overhead costs means that a company performs those variable overhead costs that primarily add value A) for the current shareholders. B) for the […]

  25) If Pope Inc. uses standard costing, the overhead allocated to work in process is recorded as a A) debit to Manufacturing Overhead Allocated and a credit to Work-in-Process. B) debit to Work-in-Process and credit to Manufacturing Overhead Control. C) debit to Manufacturing Overhead Allocated and a credit to Manufacturing Overhead Control. D) debit to Manufacturing Overhead Control and a credit to Manufacturing Overhead […]

    38.A strong internal control structure:    A. Contributes to the accuracy and verifiability of the accounting records.   B. Will prevent a business from operating at a loss.   C. Assures that a business will remain solvent.   D. Will prevent fraud, theft, and embezzlement.         39.The best definition of an accounting system is:    A. Journals, ledgers, and worksheets.   B. Manual or computer-based records used in […]

  58.Which of the following budgets is not an operating budget?    A. Sales budget. B. Cash budget. C. General and administrative expense budget. D. Selling expenses budget. E. Merchandise purchases. 59.A budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities is:    A. Traditional budgeting. B. Management budgeting. C. Master budgeting. D. Activity-based budgeting. E. Cash budgeting. 60.A plan that lists the types and […]

    101.Marketable securities are:    A.Listed immediately after Inventory on the balance sheet.   B.Almost as liquid as cash.   C.Originally recorded at cost less any broker’s commission.   D.Sold for a gain when cash received is less than the cost basis.         102.The financial statements of Baxter Corporation include an Unrealized Holding Gain on Investments. This item:    A.Is included in the […]

  71) On January 3, 2011, Hank’s Excavating Company purchased a bulldozer for $100,000. In addition to the basic purchase price, the company paid sales tax of $2,000 and freight charges of $6,000. The bulldozer will be used for 36,000 machine hours. Hank estimates that the bulldozer will have a useful life of 5 years and no residual value. Required: 1.Compute the cost of the […]

    81. Romanzof Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base information, along with the estimated activity-base information, is provided below.    ActivityCost Activity Base Procurement $  360,000  Number of purchase orders Scheduling   240,000 Number of production orders Materials handling […]

    51.Which of the following statements is true about the Pension Benefit Guaranty Corporation (PBGC)?    A.It was created by the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985.   B.It guarantees a complete pension benefit replacement.   C.It does not guarantee healthcare benefits.   D.It is not funded by an annual contribution per plan participant.   E.It allows payouts to be adjusted for cost-of-living […]

  61.Oregon Adventures purchased equipment at the beginning of 2012 for $80,000. They sold the equipment at the end of 2014 for $45,000. If the expected life of the equipment was seven years with a residual value of $10,000, and they use straight-line depreciation, which of the following is true regarding the entry to record the sale of the equipment? A.Debit Loss $5,000. B.Credit Gain […]