171. When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be A. zeroB. twice the amount of the transpositionC. one-half the amount of the transpositionD. divisible by 9   172. Which of the following errors would cause the trial balance totals to be unequal? A. A transaction was not posted.B. A payment of $67 for insurance was posted as […]

  31) What amounts are allocated to ending work-in-process inventory assuming spoilage units are recognized, and that they are ignored, respectively? 31) ______ A) $37,500; $40,000 B) $27,500; $30,000 C) $30,000; $34,250 D) $30,000; $37,500 32) Spoilage costs allocated to ending work in process, are larger by which method and by how much? 32) ______ A) when spoiled units are recognized by $4,250 B) when […]

    51) On January 1, 2011, Swinger, Inc. purchases a batting machine for $240,000 that has an estimated useful life of 5 years and an expected residual value of $20,000. What is the effect of this transaction on the company’s statement of cash flows for the year ended December 31, 2011? A) Financing activity cash inflow of $240,000 B) Financing activity cash outflow of […]

  72.Which of the following statements is true with regard to activity-based costing rates?    A. The premise of ABC is that activities are what cause costs to be incurred. B. ABC is another way to refer to a multiple departmental rate situation. C. There one basic stage to ABC. D. ABC is simpler and less expensive to implement than other traditional methods of allocating overhead costs. E. All cost drivers […]

  145. Which of the accounts below would appear in the Balance Sheet columns of the work sheet?  A. Service Revenue B. Prepaid Rent C. Supplies Expense D. None are correct   146. The work sheet at the end of July has $5,350 in the Balance Sheet credit column for Accumulated Depreciation.  The work sheet at the end of August has $6,700 in the Balance Sheet credit column for Accumulated Depreciation.  […]

  70.Physical counts of inventory:    A.Are not necessary under the perpetual system. B.Are necessary to adjust the Inventory account to the actual inventory available. C.Must be taken at least once a month. D.Requires the use of hand-held portable computers. E.Are not necessary under the cost-to benefit constraint. 71.During a period of steadily rising costs, the inventory valuation method that yields the highest reported net income […]

  72.The accounting concept or principle that is perhaps the greatest single culprit in distorting the results of financial statement analysis is the:    A. Matching principle. B. Historical cost concept. C. Conservatism principle. D. Time value of money concept. 73.As of December 31, 2012, Grove Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and […]

    21. The rationale for the equity method is that it better measures an investor’s income from investing activities when, because of its ownership interest, it   A. can exert control over the operations and dividend policy of the investee. B. can exert significant influence over the operations and dividend policy of the investee. C. cannot exert significant influence over the operations and dividend policy of the investee. […]

  61) Which of the following entries would correctly record costs associated with reworked items? 61) ______ A) Work in Process ControlXXX Materials ControlXXX Wages Payable ControlXXX Mfg. Overhead AllocatedXXX B) Materials Control XXX Wages Payable Control XXX Work in Process ControlXXX Mfg. Overhead AllocatedXXX C) Mfg. Overhead AllocatedXXX Materials ControlXXX Work in Process ControlXXX D) Finished Goods controlXXX Work in Process ControlXXX E) Work […]

    41.Which one of the following is true about workers’ compensation?    A.Worker compensation benefits focuses primarily on dealing with the increasing cost of living.   B.Unlike before, injuries that are self-inflicted and stem from intoxication are now covered as well.   C.Housing plans and pension services are included in worker compensation.   D.Self-funding of disability income by employers is restricted in most states.   […]