56. On December 31, 2013, a corporation issued $200,000 face value, 12 percent bonds that mature 10 years from the date of issue. The issue price was 97. If the firm uses the straight-line method of amortization, interest expense for 2014 will be reported at  A. $24,600. B. $24,000. C. $23,400. D. $19,400.   57. On December 31, 2013, a corporation issued $200,000 face value, 12 percent bonds that […]

  21) The materials handling activity-cost driver rate is: A) $2.00 B) $20.00 C) $0.50 D) $5.00 22) The inspections activity-cost driver rate is: A) $0.50 B) $2.00 C) $20.00 D) $5.00   23) During October, Mayan produced 700,000 regular ceramic paperweights and Mayan’s production manager counted 2,000 orders; 1,000 maintenance-hours; 2,000 setups; and 2,000 inspections for the regular product line. For October, Mayan’s controller […]

    51. Clarion Realty Clarion Realty has decided to construct its own office building. The construction will be partially financed through a construction loan and any remainder will be financed from internally generated funds. The internal accountants have collected the following information concerning the construction.     Average Balance Construction Other Year Construction Account Debt @ 6% Debt @ 10% 1 $2,000,000 $1,000,000 $500,000 2 […]

  21) The EOQ model is solved using calculus but the key intuition is that relevant total costs are minimized when relevant ordering costs equal relevant carrying costs.   22) Safety stock is used as a buffer against unexpected increases in demand, uncertainty about lead time, and unavailability of stock from suppliers. 23) Due to unprecedented growth during the year, Flowers by Kelly decided to […]

  Objective 17.5   1) In a process-costing system when goods move from department to department, the accounting for such transfers is relatively simple under ________. A) standard costing B) FIFO costing C) weighted-average costing D) operations costing 2) Which of the following best describes transferred-in costs in process costing? A) These costs are incurred in previous departments that are carried forward to subsequent departments. […]

  167. Match the following elements of internal control:    168. List and define each of the five elements of internal control.  169. Two features of internal control are presented in the following sections.  Each is followed by a list of four irregularities that occurred in processing data.  Identify the one irregularity from each list that would be discovered or prevented by the feature of internal control described.  […]

    101.Refer to the information above. For the month of October, net cash flows from operating activities for Waldorf were:    A.$18,500.   B.$22,500.   C.$78,000.   D.$100,500. $100,500 – $78,000 = $22,500       102.Which of the following activities is not a category into which cash flows are classified?    A.Marketing activities.   B.Operating activities.   C.Financing activities.   D.Investing activities.       […]

  Multiple Choice Questions  26.Which of the following need not be completed separately if a worksheet is prepared?    A. a trial balance   B. an income statement   C. a balance sheet   D. a statement of owner’s equity         27.When a trial balance is in balance,    A. adjusting entries are not required.   B. the general ledger is free of errors.   C. the debit account balances equal […]

  Matching Questions 83. Match the accounting terms with the description.   1. Time and a half       A method of paying employees according to a percentage of net sales      2. Workers’ compensation insurance       Another name for individual earnings record      3. Hourly rate basis       A person who is hired by and works under the control and direction of the employer      4. Piece-rate basis       A form used to claim […]

  31. During one month, 3,000 units of a product were completed and 800 units were 20 percent complete and still in process. The equivalent production for the month is  A. 3,800 units. B. 4,000 units. C. 3,040 units. D. 3,160 units. 3,000 + (800 x 20%). 32. The ending Work in Process inventory in the mixing department contains 300 units that are 70% complete with respect to labor costs. How […]