41. Depreciation:  A. Measures the decline in market value of an asset. B. Measures physical deterioration of an asset. C. Is the process of allocating to expense the cost of a plant asset. D. Is an outflow of cash from the use of a plant asset. E. Is applied to land.     42. The useful life of a plant asset is:  A. The length of time it is used productively […]

    46. The net cash provided by operating activities is affected by  A. a change in merchandise inventory. B. a purchase of land for cash. C. the issue of bonds payable for cash. D. proceeds of cash investments by stockholders.   47. When the net cash provided by operating activities is determined, a gain on a sale of equipment should  A. be added to the net income. B. be subtracted from the […]

  Objective 23.3   Answer the following questions using the information below:   Home Decor Inc., manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2015:     ASSETS INCOME   Book value Current value Book value Current value Bleach $275,000 […]

    31. Examples of factors from the operating environment that would affect a firm’s goals and strategies include which of the following?  A. goals and strategies of the firm’s competitors B. barriers to entry of the firm’s industry, such as patents or large investments in buildings and equipment C. nature of the demand for the firm’s products and services D. existence and nature of government regulation E. all of the […]

  158.Daisy Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.  May 2Purchased $25,000 of merchandise inventory on credit from the Farthing Company, terms 2/10, n/30. Invoice dated May 1. May 3Purchased $12,000 of merchandise inventory on credit from the Hacks Company, terms 2/10, n/30. Invoice dated […]

  146. Sound Off Audio Systems sells and installs car stereo systems. Managers need to prepare an inventory purchases budget for the first quarter of 2012. The company’s sales budget for the first quarter is provided below:    Based on past experience the company expects the cost of goods sold to equal 80% of sales. Furthermore, the ending inventory balance each month should be $4,000 plus […]

    71. Which of the following is not true? A. Gains (losses) are increases (decreases) in net assets from peripheral or incidental transactions of an entity and from other transactions and events affecting the entity except those that result from revenues (expenses) or investments by (distributions to) owners. B. Firms usually report gains and losses from sales of assets or settlements of liabilities at a net amount; that […]

  5) ________ compares the quantity of output produced with the quantity of a single input used. A) Total factor productivity B) Partial productivity C) Productivity D) Product yield variance 6) Ali Company provided the following information: Budgeted input39,000gallons Actual input35,800gallons Budgeted production40,000units Actual production38,000units   What is the partial productivity ratio? A) 0.97 units per gallon B) 1.02 units per gallon C) 1.06 units […]

  Multiple Choice Questions 1.A corporation issued common stock instead of debt to finance the purchase of non-depreciable property. Which statement is true? a.Ownership by existing shareholders will be diluted. b.The company’s debt/equity ratio will be higher. c.Income tax expense will be lower because expenses increase. d.Net income will be lower. 2.Which one of the following is a result of a company issuing common stock […]

    51. The acquisition cost of manufactured inventories does not include which category of costs?  A. Administrative B. Manufacturing Overhead C. Raw Materials D. Direct Materials E. Direct Labor   52. Which of the following is/are true regarding the Raw Materials Inventory account?  A. The Raw Materials Inventory account includes the cost of raw materials purchased but not yet transferred to the factory floor. B. The manufacturing firm records purchases of raw materials […]