31) On January 1, 2012, Berger Corporation paid $800,000 to purchase 40% of the outstanding stock of Oakley Company. Oakley Company reported net income of $200,000 for the year ending December 31, 2012 and paid cash dividends of $60,000 during 2012. On January 1, 2013, Berger Corporation sells its entire investment in Oakley Company for $1,100,000. Berger Corporation will report a(n): A) realized […]

  Multiple Choice       47. Which of the following is not a common type of comparison in accounting?  a. Comparisons of sales growth between companies. b. Comparisons of earnings per share between companies. c. Comparisons of earnings this year with earnings for the same company last year. d. Comparisons to industry.     48. When using vertical analysis,we express income statement accounts as […]

  91. Accompanying the bank statement was a debit memo for bank service charges.  On the bank reconciliation, the item is   A. a deduction from the balance per company’s records B. an addition to the balance per bank statement C. a deduction from the balance per bank statement D. an addition to the balance per company’s records 92. Accompanying the bank statement was a debit memo for bank service charges.  […]

  152. A project has estimated annual net cash flows of $90,000. It is estimated to cost $324,000. Determine the cash payback period.            153. A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 10%. Using the following tables determine the (a) net present value of […]

    71.Ben Dryden, president of Jet Glass, Inc, noticed a $8,000 debit to Accounts Payable in the company’s general ledger. This debit could correspond to:    A.A $8,000 sale to a customer.   B.A purchase of equipment costing $8,000 on credit.   C.A payment of $8,000 to a supplier to settle a balance due.   D.The failure to pay this month’s $8,000 utility bill on […]

  160. Journalize the entries to record the following:Sept.   1    Established a petty cash fund of $350Sept. 30    The amount of cash in the petty cash fund is now $130.  The fund is replenished based on the following receipts: office supplies, $116; postage $100.Record any discrepancy in the cash short and over account.Journal Date Description Post. Ref. Debit Credit               […]

  55.Which method of reporting cash flows from operating activities is used by most businesses in preparing the statement of cash flows?    A. Accrual method B. Indirect method C. Direct method D. Computational method 56.When using the indirect method to prepare the statement of cash flows, an increase in noncash current assets is    A. subtracted from current liabilities in the cash flows from financing activities section. B. subtracted from net income […]

    41. When a firm constructs its own buildings or equipment,  A.  it recognizes the labor, material, and overhead costs incurred as an asset. B. U.S. GAAP and IFRS require firms to include, or capitalize, interest costs during construction in the cost of a self-constructed asset. C.  it recognizes the labor, material, and overhead costs incurred as a period expense. D. U.S. GAAP and IFRS require firms […]

  41. Which of the following statements doesn’t correctly describe the accounting for bonds that were issued at their maturity value?  A. The market rate of interest equals the stated interest rate. B. The interest expense over the life of the bonds will equal the cash interest payments. C. The present value of the bonds’ future cash flows equals the bonds’ maturity value. D. The book value of the bond […]

  11) What is the conversion cost per equivalent unit in June? A) $552.00 B) $541.24 C) $441.24 D) $428.00 12) What amount of direct materials costs is assigned to the ending Work-in-Process account for June? A) $82,800 B) $62,100 C) $37,240 D) $30,454   13) What amount of conversion costs is assigned to the ending Work-in-Process account for June? A) $82,800.50 B) $49,639.50 C) […]