101. Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the 2nd year’s depreciation using straight-line depreciation.  A. $13,200 B. $19,200 C. $ 9,600 D. $ 9,000   102. Which of the following is true?  A. If using the double-declining-balance the total amount of depreciation expense during […]

    81. _____ is a situation where there are statistically significant compensation disparities between similarly situated employees, after taking into account the legitimate factors which influence compensation, such as: education, prior work experience, performance, productivity, and time in the job.  A. Workers’ compensation discrimination B. Systemic compensation discrimination C. Delayering D. Banding Although comparable worth is not mandated in the U.S. private sector, the Department of Labor (Office of […]

    140. Cost of goods manufactured is equal to:  A. total manufacturing costs plus ending materials inventory less beginning materials inventory B. cost of goods sold beginning work in process inventory less ending work in process inventory C. total manufacturing costs plus ending work in process inventory less beginning work in process inventory D. total manufacturing costs plus beginning work in process inventory less ending work in process inventory […]

    137. Which statement below best describes the objectives of financial accounting? a. Provide information that helps predict cash flows. b. Provide information about the economic resources, claims to resources and changes in resources and claims. c. Provide information that is useful in making decisions. d. All of the other answers are correct.     138. The assumption that a business will continue to […]

    151. Which of the following group of accounts are increased with a debit? A. assets, liabilities, stockholders’ equityB. assets, dividends, expensesC. assets, revenues, expensesD. assets, liabilities, revenues   152. Which of the following accounts increase with a credit? A. capital stock, revenues, expensesB. assets, capital stock, revenuesC. liabilities, capital stock, revenuesD. retained earnings, capital stock, assets   153. Which of the following is true regarding normal balances of accounts? A. All accounts have a normal debit balance.B. All expense […]

    81. The indirect method for the preparation of the operating activities section of the statement of cash flows: A. Separately lists each major item of operating cash receipts.B. Separately lists each major item of operating cash payments.C. Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.D. Is required if the company is a merchandiser.E. Must not be used in […]

  41. If the quick ratio has been increasing over the past several years, which of the following would cause the ratio to continue to increase?  A. An increase in accounts payable. B. An increase in inventories. C. An increase in short-term borrowings. D. A decrease in taxes payable. 42. Chavez Chocolates had a quick ratio of 1.74 at year-end 2009. Which of the following would cause the ratio to decrease […]

  Multiple Choice Questions 71. The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter are called:  A. Minimum legal capital. B. Stock subscriptions. C. Organization expenses. D. Selling expenses. E. Prepaid fees. 72. The right of common shareholders to protect their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of common stock issued by […]

  66.The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:    A. Operating activities. B. Financing activities. C. Investing activities. D. Schedule of noncash investing or financing activity. E. This is not reported on the statement of cash flows. 67.A company’s transactions with its creditors to borrow money and/or to repay the principal amounts of both short- and long-term debt are […]

  Answer the following questions using the information below:   Lehman Pottery Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.   […]