31) The records of Ashley Boutique showed Net Loss, $25,000; Depreciation Expense, $35,000; and decrease in Supplies on Hand, $8,000. The amount of Net Cash Flow from Operating Activities using the indirect method is: A) $18,000. B) $2,000. C) ($18,000). D) ($2,000). 32) Accounts Receivable amounted to $215,000 at the beginning of the year and $215,000 at the end of the year. Net income […]

  41.Which of the following accounts would not appear on a balance sheet?    A. Unearned Revenue. B. Salaries Payable. C. Interest Revenue. D. Retained Earnings. 42.Woodward Enterprises had the following events during 2013:The business issued $20,000 of common stock to its stockholders.The business purchased land for $12,000 cash.Services were provided to customers for $16,000 cash.Services were provided to customers for $5,000 on account.The company borrowed $16,000 from the bank.Operating […]

  91. A company’s income statement reported net income of $40,000 during 2010. The income tax return excluded a revenue item of $3,000 (reported on the income statement) because under the tax laws the $3,000 would not be reported for tax purposes until 2011. Which of the following statements is correct assuming a 35% tax rate?  A. A $3,000 deferred tax liability is reported as of December […]

    81. The Llama Company spent $300,000 on research and development during Year 8 to generate new product lines. One of the three projects resulted in a successful patented product while the other two projects resulted in unsuccessful efforts. How much of the $300,000 should be recognized as an expense in Year 8?  A. $300,000 B. $200,000 C. $150,000 D. $100,000 E. $0   82. Montana Company reports its net assets […]

    81. Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:  Work in process, beginning of period $40,000 Costs added during period:     Direct materials […]

  159.Blackbird, Incorporated reports the following information regarding its production cost:  Units produced39,000 units Direct labor$13 per unit Direct materials$17 per unit Variable overhead$7,800,000 in total Fixed overhead$9,750,000 in total a. Compute production cost per unit under variable costing. b. Compute production cost per unit under absorption costing.  160.Triton Industries reports the following information regarding its production cost:  Units produced77,000 units Direct labor$27 per unit […]

  26) Frazer Corp sells several products. Information of average revenue and costs is as follows:   Selling price per unit$28.50 Variable costs per unit: Direct material$5.50 Direct manufacturing labor$1.15 Manufacturing overhead$0.85 Selling costs$2.50 Annual fixed costs$125,000   What is the operating income earned if the company sells 15,000 units? A) $162,750 B) $150,000 C) $148,500 D) $152,500 27) Frazer Corp sells several products. Information […]

    61. When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when  A. a customer’s account becomes past due. B. an account becomes bad and is written off. C. a sale is made. D. management estimates the amount of uncollectibles.   62. A debit balance in the Allowance for Doubtful Accounts  A. is the normal balance for that account. B. indicates that actual bad debt […]

    81.All of the following captions or subtotals are typical of a multiple-step income statement, except:    A.Net sales.   B.Gross profit.   C.Total costs and expenses.   D.Operating income.         82.The gross profit rate represents:    A.Total sales revenue.   B.The percentage change in net sales from the prior period.   C.The percentage of sales revenue remaining after providing for the cost […]

    101. Which of the following methods, allowed by U.S. GAAP, report(s) the net income for a period  adjusted by revenues converted to cash received from customers and expenses converted to cash disbursed to various suppliers of goods and services?  A. the direct method B. the indirect method C. both the direct method and the indirect method D. the schedule of cash receipts and cash disbursements E. the funds flow […]