31.Valpar Company produces several lines of laundry hampers. The factory is highly automated and uses an activity-based costing system to allocate overhead costs to its various products. During the upcoming period the company expects to produce 72,000 units. The costs and cost drivers associated with four activity cost pools are given below:  Production of 20,000 units of its popular foldable hamper required 3,000 labor […]

    71. A company issued 10%, five-year bonds with a par value of $400,000. The market rate when the bonds were issued was 8%. The company received $432,458 cash for the bonds. Using the effective interest method, the amount of interest expense for the first semiannual interest period is:  A. $16,000.00 B. $20,000.00 C. $4,324.58 D. $17,298.32 E. $16,754.20     72. The market value of a bond is equal to:  […]

Multiple Choice Questions  1.Factor(s) involved in communicating useful information is/are:    A. Attributes of the users   B. Purpose for which the information will be used   C. Process by which the information is analyzed   D. All of these answers are correct.     2.Current financial reporting standards assume that users of accounting information:    A. Have an expert’s understanding of economic and financial events and conditions.   B. Have a reasonably […]

  68.Which of the following answers shows the effect of the bond issuance on the financial statements?   A. Option A B. Option B C. Option C D. Option D 69.Which of the following answers shows the effect of the first interest payment and amortization of premium or discount?   A. Option A B. Option B C. Option C D. Option D 70.On 12/31/18, Wise […]

  Multiple Choice Questions   31. When a company prepares a bond indenture, certain provisions of the bonds are included. Which of the following is/are not specified in the indenture?  A. Dates of each interest payment. B. The stated interest rate. C. The maturity date. D. The market rate of interest. 32. Which of the following bonds does not have specific assets pledged to guarantee repayment?  A. Debenture bond B. Callable bond C. Discount […]

  112.Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. What journal entry should Andrew use to account for direct materials used in March?     A.Debit Raw Materials Inventory $141,000; credit Accounts Payable $141,000. […]

  67.A local government recorded the payment of bond principal by debiting Expenditure:  bond principal and crediting Cash.  What is the worksheet entry when preparing the government-wide statements? A)Debit Bonds Payable and credit Cash B)Debit Bonds Payable and credit Expenditure: Bond Principal C)Debit Cash and credit Expenditure:  Bond Principal D)None of the above 68.In its Statement of Net Assets, a government reported: ?              assets of […]

    61. Which balance sheet accounts are most affected by financing activities? A. Current assetsB. Current liabilitiesC. Long-term assetsD. Long-term liabilities and stockholders’ equity   62. Which of the following financing activities results in a cash inflow? A. Buying treasury stockB. Issuing bondsC. Repaying a bank loanD. Paying cash dividends   63. Upon review of Mack’s statement of cash flows, the following was noted:  Cash flows from operating activities $ 15,000 Cash flows from investing activities 70,000 […]

    91. Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow.  Stockton Company Adjusted Trial Balance For the Year Ended December 31, 20XX       Cash $  6,530   Accounts Receivable 2,100   Prepaid Expenses    700   Equipment 13,700   Accumulated Depreciation   $  1,100 Accounts Payable   1,900 Notes Payable    4,300 Capital Stock […]

  83.GASB Concepts Statement No. 3, Communication Methods in General Purpose External Financial Reports that Contain Basic Financial Statements, states that A)              notes to the financial statements may include management’s objective explanations. B)              required supplementary information must be objective and may not include predictions or subjective assessments. C)              disclosure in the notes is not an adequate substitute for recognition in the financial statements. D)              All […]