Objective 19.2 1) An example of a nonfinancial measure for customer satisfaction is ________. A) number of customer complaints B) warranty claims C) liability claims incurred to the company D) rework costs due to inefficiency 2) An example of a nonfinancial measure for customer satisfaction is ________. A) average manufacturing time for key products B) contribution margin C) percentage of products that […]
184. Koger Consultants began operations on June 1, 2007 by making an investment of $30,000 in return for capital stock. The financial statements for Koger Consultants are shown below for the month ended June 30, 2007 (the first month of operations). Determine the missing amounts for letters (a) through (p). Koger ConsultantsIncome StatementFor the Month Ended June 30, 2007 Fees earned $22,000 Operating expenses: Wages expense$7,250 […]
51.Select the incorrect statement regarding the relevant range of volume. A. Total fixed costs are expected to remain constant. B. Total variable costs are expected to vary in direct proportion with changes in volume. C. Variable cost per unit is expected to remain constant. D. Total cost per unit is expected to remain constant. 52.What are the expected average quarterly costs of […]
51.Pension expense is a.accrued each period as employees require payments. b.recognized as a long-term deferred asset. c.accrued as employees earn their rights to future benefits. d.calculated by dividing an employee’s annual salary into the number of years the employee is expected to require pension payments. 52.Simpson Incorporated sells fishing lures and monofilament leader material. During June, Simpson distributed 6,000 coupons to receive a free […]
9) The last step in a process-costing system is to compute cost per equivalent unit. 10) The equivalent unit concept is a means by which a process costing system can compare partially completed work done in each of the various process categories to obtain a total measure of work done. 11) Equivalent units are calculated separately for each input. 12) In […]
Multiple Choice Questions 46. All of the following statements regarding liabilities are true except: A. A liability is a probable future payment of assets or services. B. Unearned future wages to be paid to employees should be recorded as liabilities. C. For a liability to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of […]
51. Which of the following transactions wouldn’t be considered an external exchange? A. The purchase of inventory on credit from a supplier. B. Cash received from a credit customer. C. Cash paid for wages to employees. D. Using up insurance which was paid for in advance. 52. Which of the following reflects the impact of a transaction where $200,000 cash was invested by stockholders in exchange for stock? A. Assets and […]
117.A company had a tractor destroyed by fire. The tractor originally cost $85,000 with accumulated depreciation of $60,000. The proceeds from the insurance company were $20,000. The company should recognize: A.A loss of $5,000. B.A gain of $5,000. C.A loss of $20,000. D.A gain of $65,000. E.A gain of $20,000. Cost of tractor$85,000 Accumulated depreciation(60,000) Book value$25,000 […]
71. What type of strategy is used by a firm that focuses on what it does best within established markets? A. Concentration B. Internal growth C. External growth D. Divestment With “concentration” strategy, a company attempts to focus on what it does best within its established markets and can be thought of as “sticking to its knitting.” 72. What type of strategy attempts to expand a company’s […]
81. The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to A. Preferred Stock for $700,000. B. Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value—Preferred Stock for $200,000. C. Preferred Stock for $500,000 and Retained […]
Multiple Choice Questions
44.The classification and normal balance of the accounts receivable account is:
A. an asset with a credit balance
B. a liability with a debit balance
C. an asset with a debit balance
D. a revenue with a debit balance
45.The classification and normal balance of the salaries expense account is:
A. an expense with a credit balance
B. a liability with a debit balance
C. an asset with a debit balance
D. an expense with a debit balance
46.A business earns $4,000 from various charge account clients. To record this transaction, the business would:
A. Debit Accounts Receivable; Credit Cash
B. Debit Accounts Receivable; Credit Revenue
C. Debit Cash; Credit Accounts Receivable
D. Debit Accounts Payable; Credit Revenue
47.Select the entry below that records paying employees for work performed during the pay period?
A. debit Cash and credit Salary Expense
B. debit Salary Expense and credit Cash
C. debit Salary Expense and credit Accounts Receivable
D. debit Cash, and credit Accounts Receivable
48.A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:
A. Debiting Accounts Payable; Crediting Utilities Expense
B. Debiting Utilities Expense; Crediting Accounts Receivable
C. Debiting Utilities Expense; Crediting Accounts Payable
D. Debiting Utilities Expense; Crediting Cash
49.A business purchases equipment costing $4,000. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:
A. Debit Equipment $2,500; Credit Accounts Payable $2,500
B. Debit Equipment $1,500; Credit Cash $1,500
C. Debit Equipment $4,000; Credit Accounts Payable $4,000
D. Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts Payable $2,500
50.A business performed $6,000 of services. Their customer paid $1,000 of the amount owed right away but charged the remaining amount. To record this transaction, the business would:
A. Debit Cash $1,000 and Debit Accounts Receivable $5,000; Credit Fee Income $6,000
B. Debit Accounts Receivable $5,000 and; Credit Fee Income $5,000
C. Debit Cash $1,000; Credit Fee Income $1,000
D. Debit Cash $1,000; Credit Accounts Payable $5,000 and Credit Fee Income $6,000
51.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?
A. debit Cash and credit Ty Knott, Capital
B. debit Cash and credit Salary Expense
C. debit Salary Expense and credit Cash
D. debit Ty Knott, Drawing, and credit Cash
52.The ending capital balance appears on which of the following statement(s)?
A. Statement of owner's equity
B. Income Statement
C. Statement of owner's equity and balance sheet
D. Statement of owner's equity and income statement
53.On a statement of owner's equity, beginning capital is $30,000, Net Income for the year is $11,000 and Drawing for the year is $6,000, the ending capital amount would be
A. $30,000.
B. $35,000.
C. $47,000.
D. $25,000.
Beginning Capital, $30,000 + Net Income, $11,000 - Drawing, $6,000 = Ending Capital, $35,000.
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