Objective 4.5   1) The budgeted indirect-cost rate is calculated ________. A) at the beginning of the year B) during the year C) at the end of each quarter D) at the end of the year   2) The difference between actual costing and normal costing is ________. A) normal costing uses actual quantities of direct-costs B) actual costing uses actual quantities of direct-costs […]

    31. _____ analysis involves determining the business appropriateness of training, given the company’s business strategy.  A. Person B. Organizational C. Task D. Information Organizational analysis considers the context in which training will occur. This analysis is generally performed first.     32. Ensuring that employees have product and service knowledge and understand their roles and decision-making authority are implications of which of the following strategic training and development initiatives?  […]

    91.The logic behind the lower-of-cost-or-market rule is:    A. Inventory gradually becomes obsolete.   B. Inventory that is unsalable should be written down to zero (or its scrap value).   C. An asset is not worth more than it would cost the owner to replace it.   D. Inventory that is unsalable should be written down to its replacement cost.         92.Many companies state in […]

  177.A company has three employees. Total salaries for the month of January were $8,000. The federal income tax rate for all employees is 15%. The FICA—social security tax rate is 6.2% and the FICA—Medicare tax rate is 1.45%. Calculate the amount of employee taxes withheld and prepare the company’s journal entry to record the January payroll assuming these were the only deductions.     […]

    51. A company’s annual accounting period ends on December 31. During the current year, a depreciable asset thatcost $24,000 was purchased on October 1. The asset has a $1,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a six-year life. What is the total depreciation expense for the current year?  A. $3,833.33 B. $958.33 C. $4,000.00 D. $1,000.00 E. $1,041.67     52. […]

    108. The Discount on Bonds Payable account is:  A. A liability. B. A contra liability. C. An expense. D. A contra expense. E. A contra equity.       109. A discount on bonds payable:  A. Occurs when a company issues bonds with a contract rate less than the market rate. B. Occurs when a company issues bonds with a contract rate more than the market rate. C. Increases the Bond Payable account. […]

    98.J. Brown Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that J. Brown Consulting will make to record this transaction.     A.  Insurance Expense2,500 Cash 2,500     B.  Cash2,500 Insurance Expense 2,500     C.  Cash2,500 Prepaid Insurance 2,500     D. Prepaid Insurance2,500 Cash 2,500     E.  Insurance Expense2,500 Prepaid Insurance 2,500       […]

    95. McConnell’s Bakeries had the following balances on December 31, 2015, before any adjustment: Accounts Receivable = $100,000; Allowance for Uncollectible Accounts = $4,100 (credit).  McConnell’s estimates uncollectible accounts based on an aging of accounts receivable as shown below: Age Group (days past due) Accounts Receivable Estimated Percent Uncollectible Not yet due $50,000 4% 0-30 $20,000 8% 31-60 $18,000 10% More than 60 […]

    41. In determining cash flows from operations, which method starts with net income, then add noncash expenses and subtracts noncash revenues?  A. direct method B. fixed method C. indirect method D. funds flow method E. variable method   42. Which method of preparing the statement of cash flows starts with the total for net income and removes the effects of gains and losses from nonoperating transactions, and then adds or […]

  13.On January 23, Bennington Corporation, for the first time in its short history, purchased 200 shares of its own common stock for $40 a share. On March 31, it sold 100 of those shares for $45 a share. Prepare the journal entry recording the March 31st transaction.                         14.              On January 23, Oakley […]