57. Under what section of the Statement of Cash Flows would you classify the purchase of equipment by issuing a long-term note payable? a. Operating. b. Investing. c. Financing. d. Noncash activity.     58. Which of the following transactions would not create a cash flow? a. The company purchased some of its own stock from a stockholder. b. Payment of a dividend. […]

    41.The owner of Westhampton Fish Eatery purchased a new car for his daughter who is away at college at a cost of $43,000 and reported this amount as Delivery Vehicle in the restaurant’s balance sheet. The reporting of this item in this manner violated the:    A.Cost principle.   B.Business entity concept.   C.Objectivity principle.   D.Going-concern assumption.         42.Eton Corporation […]

  52. Which of the following statements is correct?  A. All transactions require compound entries. B. Compound entries include only debits. C. Accounts being debited should always follow the accounts being credited in a compound entry. D. Compound entries affect more than one debit and/or more than one credit. 53. The journal entry to record the purchase of equipment for a $100 cash down payment and a balance of $400 due […]

  121. A corporation issues $100,000, 8%, 5-year bonds on January 1, 2007, for $104,200. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized on July 1, 2007, is  A. $8,420. B. $4,420. C. $4,000. D. $3,580. 122. If bonds are issued at a premium, the stated interest rate […]

  239.Bob Quinn is in the gravel business and has engaged you to assist in evaluating his company, Quinn Gravel Company. Your first step is to collect the facts about the company’s operations. On January 3, 20×7, Bob purchased a piece of property with gravel deposits for $3,155,000. He estimated that the gravel deposits contained 4,700,000 cubic yards of gravel. The gravel is used for […]

  51) The budgeting process generally concludes with the preparation of the 51) ______ A) research and development budget. B) production budget. C) cash budget. D) selling expense budget. E) budgeted financial statements. 52) Contempo Futon manufactures futons. The estimated number of sales for the last quarter of 2006 is as follows:   Month           Sales October   20,000 November   […]

    96. Regarding a bank reconciliation, which one of the following is an item recorded by the company but not by the bank? a. Checks outstanding. b. Interest earned. c. Service charges. d. NSF checks.     97. Which of the following would NOT need to be accounted for in a bank reconciliation? a. Deposits outstanding recorded by the company but not the bank. […]

  121. The equity method of accounting for investments  A. requires a year-end adjustment to revalue the stock to lower of cost or market B. requires the investment to be reported at its original cost C. requires the investment be increased by the reported net income of the investee D. requires the investment be decreased by the reported net income of the investee 122. Able Company owns 15,000 of the 50,000 […]

  82.A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:     A.Payroll Register. B.Factory payroll record. C.General Ledger. D.Time ticket. […]

    71.Which of the following is true about the quality approach to performance measurement?    A.The quality approach techniques usually have very little strategic congruence.   B.The quality approach has very low acceptability.   C.The quality approach does not advocate the evaluation of personal traits.   D.The quality approach adopts a systems-oriented focus.   E.The quality approach relies primarily on a combination of the comparative […]