69. Using the following partial table of present value of $1 at compound interest, determine the present value of $20,000 to be received four years hence, with earnings at the rate of 10% a year:  Year 6% 10% 12% 1 .943 .909 .893 2 .890 .826 .797 3 .840 .751 .712 4 .792 .683 .636          A. $13,660B. $12,720C. $15,840D. $10,400   70. When several alternative […]

  41.Dividends payable is recorded at the date of a. issue. b. record. c. declaration. d. payment. 42.If dividends paid are recorded as an expense, then a. income and retained earnings are understated. b. only income is understated. c. only retained earnings is understated. d. the income statement and balance sheet are correct. 43.An ordinary 20% stock dividend a.causes no change in retained earnings. b.decreases […]

    89.Refer to the information above. The amount of cash paid by Kenny Corporation in 2015 for the purchase of marketable securities was:    A. $445,000.   B. $535,000.   C. $355,000.   D. $420,000.         90.Refer to the information above. The cash proceeds received by Kenny Corporation in 2015 for the sale of marketable securities was:    A. $230,000.   B. $280,000.   C. $195,000.   D. $180,000.     […]

  31) Paymaster Company provided the following information for 2001.   Revenue$200,000 Operating assets70,000 Net operating income110,000 Total assets04,500   Required:   What is the return on investment? 31) ______ A) 0.55 B) 1.57 C) 1.05 D) 0.59 E) 2.25 Use the information below to answer the following question(s).   Thacker Company has two regional offices. The data for each is as follows:   EdmontonSarnia […]

    71. Which of the following is considered to be unearned revenue?  A. Concert tickets sold last month for yesterday’s performance. B. Concert tickets sold yesterday on credit for yesterday’s performance. C. Concert tickets that were not sold for the current performance. D. Concert tickets sold for next month’s performance.   72. Which of the following is an example of accrued revenue?  A. Swimming pool cleaning that has been paid for […]

    51. A market pay policy line:  A. is developed using nonkey jobs. B. can be generated using a statistical procedure called regression analysis. C. requires market pay rate data on all jobs in the organization. D. is always expressed as a linear relationship between job evaluation points and pay rates. Basically, a market pay policy line is developed based on the key jobs.     52. Which of the […]

  Answer the following questions using the information below:   The Gows Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October:   Direct Materials processed:130,000 gallons (shrinkage was 10%)   Production:condensed goat milk52,200 gallons skim goat milk64,800 gallons   Sales:condensed goat milk$3.50 per […]

  127.Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend payment is:    A.Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000. B.Debit Common Dividends Payable $4,000; credit Cash $4,000. C.Debit Retained Earnings $4,500; credit Common Dividends Payable $4,500. […]

    71. What is the accounting rate of return for this machine?A.  14.28%B.  17.14%C.  60.0%D.  8.57%E.  7%     72. After-tax net income divided by the annual average investment is the:A.  Net present value rate.B.  Payback rate.C.  Accounting rate of return.D.  Earnings from investment.E.  Profit rate.     73. A company buys a machine for $60,000 that has an expected life of nine years […]

  61.The break-even time (BET) method is a variation of the:     A. Payback method. B. Internal rate of return method. C. Accounting rate of return method. D. Net present value method. E. Present value method. 62.If a manager were concerned with the time value of money, from which two capital budgeting methods should the manager choose?     A. IRR or Payback. B. BET or IRR. C. BET or Payback. D. NPV or ARR. […]