84.All of the following are true of financial statement analysis report, except:    A. Contains ambiguities and qualifications. B. Forces preparers to organize their reasoning and to verify the logic of analysis. C. Serves as a method of communication to users. D. Helps users and preparers to refine conclusions based on evidence from key building blocks. E. Enables readers to see the process and rationale of analysis. 85.When a company’s […]

    81. On December 15, 2013, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in 2014. Which accounting principle would require Myers Legal Services to record the legal fees revenue in 2014 and not 2013?  A. Monetary unit principle B. Going-concern principle C. Cost principle D. Business entity principle E. Revenue recognition principle     82. Marian Mosely is the owner […]

    53.If the actual cost per pound of direct material is less than the standard cost per pound, there is:    A. A favorable materials price variance.   B. An unfavorable materials price variance.   C. A favorable materials quantity variance.   D. A favorable total materials variance.         54.The calculation of the labor rate variance is:    A. Standard rate multiplied by (standard hours minus actual hours). […]

  137.Preferred stock that the issuing corporation has the option to retire by paying a specified amount to the preferred stockholders is called:    A.Convertible preferred stock. B.Callable preferred stock. C.Premium stock. D.Cumulative preferred stock. E.Participating preferred stock. 138.Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets […]

  51. A copy of the Form W-2 for each employee is submitted to the Social Security Administration along with  A. Form 940. B. Form 941. C. Form 8109. D. Form W-3. 52. Which of the following statements is not correct?  A. A few states levy an unemployment tax on the employee that must be withheld from the employee’s pay. B. One of the purposes of the unemployment insurance program is to stabilize […]

    75. On September 30, MFP Co. paid employee salaries of $7,000, including $1,000 it owed to its employees last month. What are the effects of this transaction on the accounting equation? a. Expenses increased, liabilities increased, and assets increased. b. Assets decreased, liabilities decreased, and expenses increased. c. Assets decreased, expenses decreased, and liabilities increased. d. Expenses decreased, liabilities decreased, and assets decreased. […]

  Answer the following question(s) using the information below:   Hawk Ltd. uses process costing in its Fabricating Department. At the beginning of October, it had 12,000 units in beginning work in process that were 40% complete with respect to conversion. During October it put 87,000 units into production and completed 89,000 good units. At October 31, there were 3,000 units in ending work in […]

    Objective 12.1   1) Which of the following statements best define strategy? A) It describes how an organization can create value for its customers while differentiating itself from its competitors. B) It is an organization’s ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. C) It is an organization’s ability to offer […]

    86. Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,000 from Hopkins. On July 10, the entry or entries Gideon makes to record the recovery of the bad debt is:   A. Accounts […]

  35.An unincorporated association of two or more persons to pursue a business for profit as co-owners is a:    A.Partnership. B.Proprietorship. C.Contractual company. D.Mutual agency. E.Voluntary organization. 36.Advantages of a partnership include:    A.Limited life. B.Mutual agency. C.Unlimited liability. D.Co-ownership of property. E.Voluntary association. 37.A partnership agreement:    A.Is not binding unless it is in writing. B.Is the same as a limited liability partnership. C.Is binding even […]