51.Refer to the above data. The number of dollars equivalent to ¥5,250,000 on this date is:    A. $40,110.00.   B. $687,172.50.   C. $87,225.50.   D. Depends upon whether the item is a receivable or a payable. ¥5,250,000/¥130.89005 = $40,110 or ¥5,250,000 × $0.00764 = $40,110       52.Walblue imports a desk from a French manufacturer for sale in its chain of U.S. stores. The cost […]

  81. Using the estimate based on sales method of accounting for uncollectible accounts, the entry to reinstate a specific receivable previously written off would include a  A. credit to Bad Debt Expense B. credit to Accounts Receivable C. debit to Allowance for Doubtful Accounts D. debit to Accounts Receivable 82. At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $540. During […]

  51. On December 31, 2012, Andy Inc. has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment. Andy Inc. also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts:    What is the amount of bad debt expense to be reported on Andy Inc.’s financial statements for 2012?  A. $6,500 […]

    41. For various reasons, a single economic entity may exist in the form of a parent and several legally separate subsidiaries, often referred to as an affiliated group.  Which of the following is/are true?  A. A consolidation of the financial statements of the parent and each of its subsidiaries presents the results of operations, financial position, and cash flows of an affiliated group of companies […]

    151.Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.    A.8.4%   B.17.2%   C.14.3%   D.15.6%   E.1.5% Return on Assets = Net Income/Average AssetsReturn on Assets = $43,000/[($250,000 + $300,000)/2]Return on Assets = $43,000/$275,000 = 0.15636 = 15.6%   […]

  31) Prepare the necessary general journal entry for April 14. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________   32) Prepare the necessary general journal entry for April 15. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 33) Prepare the necessary general journal entry for April 16. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________   34) Prepare the necessary general journal entry for April 20. ______________________________________________________________ ______________________________________________________________ ______________________________________________________________   35) Prepare the necessary general journal entry for April […]

    61. The standard price and quantity of direct materials are separated because: A. GAAP reporting requires this separationB. direct materials prices are controlled by the purchasing department, and quantity used is controlled by the production departmentC. standard quantities are more difficult to estimate than standard pricesD. standard prices change more frequently than standard quantities   62. Standard costs are divided into which of the following components? A. Variance Standard and Quantity StandardB. Materials […]

  MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 20) Costs associated with holding inventories and the resulting opportunity cost of the investment tied up in inventory fall into which of the following categories? 20) ______ A) stockin costs B) stockout costs C) ordering costs D) carrying costs E) quality costs 21) Costs incurred when preparing and issuing […]

  93.A company’s December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period?  A.$3,305. B.$4,180. C.$2,350. D.$2,540. E.$3,225. 94.Which of the following errors would cause the Balance Sheet and Statement of Owner’s Equity columns of a work sheet to be out of balance?     A.Entering an asset amount in the Income Statement […]

    131. A voucher system is a set of procedures and approvals:  A. Designed to eliminate the need for subsidiary ledgers. B. Designed to determine if the company is operating profitably. C. Used almost exclusively by small companies. D. Used to ensure that the company sells on credit only to creditworthy customers. E. Designed to control cash disbursements and the acceptance of obligations.   132. The gross method of recording purchases […]