Multiple Choice Questions   31. Which of the following statements about stockholders’ equity is false?  A. Stockholders’ equity is the shareholders’ residual interest in the company resulting from the difference in assets and liabilities. B. Stockholders’ equity accounts are increased with credits. C. Stockholders’ equity results only from contributions of the owners. D. The purchase of land for cash has no effect on stockholders’ equity. 32. Assets, liabilities, and stockholders’ […]

  61. Goods in transit are included in a purchaser’s inventory:  A. At any time during transit. B. When the purchaser is responsible for paying freight charges. C. When the supplier is responsible for freight charges. D. If the goods are shipped FOB destination. E. After the half-way point between the buyer and seller. 62. Goods on consignment:  A. Are goods shipped by the owner to the consignee who sells the goods for […]

  91. Lombardi Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the […]

147.Knollwood Corporation issued $296,000 of 30-year, 8 percent bonds at 106 on one of its semiannual interest payment dates. The straight-line method of amortization is to be used. How much bond interest expense will be recorded on the next interest payment date?   a. $11,840 b. $11,240 c. $11,544 d. $12,136       148.Knollwood Corporation issued $300,000 of 30-year, 8 percent bonds at 106 […]

  81. Which method of evaluating capital investment decisions uses the concept of present value to compute a rate of return?  A. Unadjusted rate of return B. Internal rate of return C. Net present value D. Payback 82. Cash inflows generated by capital investments included all of the following except:  A. Incremental revenues. B. Cost savings. C. Reduction in the amount of working capital. D. Increase in operating expenses. 83. Cash outflows generated by capital investments […]

    61. Bartels Corp. produces woodcarvings. It takes two hours of direct labor to produce a carving. Bartels’ standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels’ labor rate variance for August?A.  $10,376 unfavorableB.  $2,104 unfavorableC.  $2,104 favorableD.  $12,480 unfavorableE.  $ 12,480 favorable   […]

    81. Who provides an opinion that reflects their professional conclusions regarding the financial statements and for most publicly traded firms in the U.S. also provides a separate opinion on the effectiveness of the firm’s internal controls over financial reporting?  A. management B. controller C. financial vice-president D. independent auditor E. general counsel   82. The managers of a business prepare financial statements to present meaningful information about that business’s activities […]

    71.Which of the following is true of passive employee wellness programs (EWPs)?    A.They have larger outreach programs aimed at individuals.   B.They provide ongoing support to employees motivate them to use the available resources.   C.Health education programs are an example of passive EWPs.   D.It does not include structural changes like having a fitness facility for employees.   E.It includes tailored programs […]

    21.Marsden Company has three departments occupying the following amount of floor space:  How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round your intermediate calculations.)    A. $100,000   B. $50,000   C. $66,667   D. None of these answers is correct.     22.Select the correct statement from the following.    A. The allocation base determines whether a cost is […]

    59.Robert Ballard, a sole proprietor, entered into partnership with another individual. Ballard’s investment in the partnership included equipment that cost $64,000 when it was purchased. The equipment has a book value of $26,000 and a net agreed-on value of $32,000. In the financial records of the partnership, this equipment and its accumulated depreciation should be recorded at    A. $64,000 and $38,000, respectively.   B. $32,000 […]