61. Rice Corporation’s attorney has provided the following summaries of three lawsuits against Rice: ? Lawsuit A: The loss is probable, but the loss can’t be reasonably estimated. ? Lawsuit B: The loss is reasonably possible, but the loss can’t be reasonably estimated. ? Lawsuit C: The loss is reasonably possible and can be reasonably estimated. Which of the following statements is correct?  A. A disclosure […]

  141.Alpha Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?    A.Assets increase by $75,000 and expenses increase by $75,000. B.Assets increase by $75,000 and expenses decrease by $75,000. C.Liabilities increase by $75,000 and expenses decrease by $75,000. D.Assets decrease by $75,000 […]

  51) ______ A) create special accounting records for the support department. B) not allocate any costs of the support departments. C) allocate costs based on user department usage. D) expense fixed costs of support departments directly to the income statement. E) allocate a fixed amount to each department regardless of use. 52) Which of the following departments is NOT a support department for a […]

    76. Blanton Corporation purchased 35% of the outstanding shares of common stock of Worton Corporation as a long-term investment.  Subsequently, Worton Corporation reported net income and declared and paid cash dividends.  What journal entry would Blanton Corporation use to record the dividends it receives from Worton Corporation?  A. debit Investment in Worton Corporation; credit Cash B. debit Cash; credit Dividend Revenue C. debit Investment in Worton Corporation; […]

  68.FASB Statement 124, Accounting for Certain Investments of Not-for-Profit Organizations: A)Requires that investments in equity securities be carried at book value. B)Requires that investments in debt securities be carried at fair value. C)Requires that investments accounted for under the equity method be adjusted to fair value at the end of the accounting period. D)Requires that investments in consolidated subsidiaries be reported as permanently restricted. […]

  11) A loss on the sale of a plant asset is listed as: A) a liability on the balance sheet. B) an asset on the balance sheet. C) other expense on the income statement. D) other income on the income statement. 12) A gain on the sale of an asset occurs when: A) the cash received is less than the book value of the […]

  145. Time Bender Company makes watches and clocks. The following estimated data are available for the company’s next fiscal year:Total direct labor costs: $1,700,000Total setup costs:  $190,000    Watches Clocks Expected production 800,000 100,000 Direct labor hours needed 68,000 DLH 17,000 DLH Machine setups needed 1,000 setups 1,000 setups Determine the setup cost per unit for the watches and the clocks if setup costs […]

  6) The entry for indirect materials (such as glue, etc.) requisitioned for use in production is: A) Raw Materials Inventory Work-in-Process Inventory   B) Work-in-Process Inventory Accounts Payable   C) Work-in-Process Inventory Raw Materials Inventory   D) None of these answers are correct. 7) During the week ended November 30, total factory payroll incurred was $6,000. Of this total, 80% was for direct labor. […]

  ESSAY. Write your answer in the space provided or on a separate sheet of paper. 88) The executive vice president of Robotics, Inc., is concerned because the cost of materials has not been in line with the budget for several periods, even after implementing an EOQ model. The company has the normal direct material variance computations of price and efficiency at the end of […]

  21) Before a company can pay dividends to the common stockholders, the owners of cumulative preferred stock must receive: A) the current year’s dividends, but not dividends in arrears. B) neither the current year’s dividends nor dividends in arrears. C) all dividends in arrears plus the current year’s dividends. D) all dividends in arrears, but not the current year’s dividends.   22) A share […]