31. The Dividend account is a(n):  A. temporary account B. asset account C. real account D. liability account 32. Which of the following does not occur during the closing process?  A. Journal entries are made to return the balance in all temporary accounts to zero. B. Journal entries are made to transfer the net income or loss to retained earnings. C. Journal entries are made to return the balance in all permanent accounts […]

    71.Refer to the information above. What was the average issue price per share of common stock?    A. $2.75 per share   B. $1.25 per share   C. $1.50 per share   D. $3.75 per share ($750,000 + $900,000)/600,000 = $2.75       72.Refer to the information above. How many shares of common stock are outstanding?    A. 600,000 shares.   B. 606,000 shares.   C. 594,000 shares.   D. 1,000,000 shares. […]

    160.Refer to the information above. What will be the effect on Apex’s debt ratio if Apex’s owner invests an additional $2 million to finance its expansion?    A. The debt ratio will decrease from .1 (2/20) to .0909 (2/22) after the additional investment.   B. The debt ratio will decrease from 2/9 before to 2/11 after the additional investment.   C. The debt ratio will increase from […]

  100.Which of the following would not be true regarding internal service funds? A)Internal service funds use the economic resources measurement focus and accrual basis of accounting. B)Examples of internal service funds would include self-insurance funds, motor pool funds, and print shop funds. C)In the government-wide financial statements, internal service funds are most commonly reported in the business-type activities column. D)None of the above; all […]

  Objective 8.5   1) Variable overhead costs: A) never have any unused capacity B) have no production-volume variance C) allocated are always the same as the flexible-budget amount D) All of these answers are correct.   2) Fixed overhead costs: A) never have any unused capacity B) should be unitized for planning purposes C) are unaffected by the degree of operating efficiency in a […]

  Objective 9.2   1) The contribution-margin format is used for ________. A) variable costing income statement B) mixed costing income statement C) absorption costing income statement D) job order costing income statement 2) The gross-margin format is used for ________. A) variable costing income statement B) mixed costing income statement C) absorption costing income statement D) standard costing income statement   3) Which of […]

  Objective 16.3   1) Which of the following statements is true of the methods for allocating joint costs? A) Constant gross-margin percentage method results in same joint production cost per unit  for all products. B) Estimated net realizable value method results in same gross margin percentage for all products. C) Present value allocation method is the least preferred method due to its complex calculations. […]

    161. The FASB and IASB have increasingly required or permitted firms to report certain assets and liabilities at their fair values (or the lower of fair value or carrying value) at the end of each period instead of their historical (or acquisition) costs. Examples include which of the following?   A. Measurement of all inventories at lower of cost or market. B. Measurement of fixed assets […]

  59.Reichart Company has four different categories of inventory. Quantity, cost, market value for each inventory category is shown below:  The company carries inventory at lower-of-cost-or-market applied to the inventory in aggregate. The implementation of the lower-of-cost-or-market rule would:    A. increase assets and equity by $55.50. B. reduce assets and equity by $101.00. C. reduce assets and equity by $79.00. D. None of these. 60.The lower-of-cost-or-market rule can be applied […]

  Multiple Choice Questions 1.Equity investments are: a.investments in bonds of a corporation. b.investments that pay dividends, not interest. c.classified as long-term liabilities. d.marketed by the SEC to any investor who wishes to buy bonds of a public company. 2.Investments in equity securities are current assets if: a.they can be sold and converted into cash on demand and a ready market exists. b.the fair market […]