138.A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):    A. Account.   B. Trial balance.   C. Journal.   D. T-account.   E. Balance column account.         139.Smiles Entertainment had the following accounts and balances at December 31:  AccountDebitCredit Cash$10,000 Accounts Receivable2,000 Prepaid Insurance2,400 Supplies1,000 Accounts Payable $5,000 Common Stock 4,900 Service Revenue 7,000 […]

    101. A business operated at 100% of capacity during its first month, with the following results:  Sales (90 units) $90,000 Production costs (100 units):     Direct materials$40,000    Direct labor20,000    Variable factory overhead2,000    Fixed factory overhead    5,00067,000     Operating expenses:     Variable operating expenses$ 8,000    Fixed operating expenses    1,0009,000 What is the amount of the contribution margin that would be reported on […]

    131. Risk is:  A. Net income divided by average total assets. B. The reward for investment. C. The uncertainty about the expected return that will be earned from an investment. D. Unrelated to expected return. E. Derived from the idea of getting something back from an investment.     132. Consider the risk of the following investments. Choose the answer that lists the investments in order from highest expected return […]

    71. IFRS specifies that, in the context of inventories, market means   A. replacement cost, only. B. net realizable value, only. C. replacement cost, except that market may not exceed net realizable value and may not be less than net realizable value reduced by a normal profit margin. D. replacement cost, except that market may not exceed net realizable value and may not be less than present value […]

    51.A reversing entry should not be made for an adjusting entry to record    A. the accrued salaries.   B. an accrued expense item that will involve future cash payments.   C. an accrued income item that will involve future cash receipts.   D. depreciation.         52.The entry to reverse the adjustment for accrued interest income consists of a debit to    A. Interest Income and a […]

  31) To record estimated bad debts under the direct write-off method: A) debit Allowance for Uncollectible Accounts and credit Accounts Receivable. B) debit Accounts Receivable and credit Allowance for Uncollectible Accounts. C) debit Uncollectible-Accounts Expense and credit Allowance for Uncollectible Accounts. D) no journal entry is needed.   32) Which of the following is NOT true regarding cash collections from customers? A) Most companies […]

  Trintal Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:   Number ofNumber ofNumber of ProductSetupsComponentsDirect Labor Hours Standard1510750 Deluxe3515500   Overhead costs$16,500$23,500   11) Assume a traditional costing system applies the $40,000 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to […]

    Objective 22.1   1) Which of the following is a characteristic of a management control system? A) It aids and coordinates the process of making decisions. B) It encourages short-term profitability and maximizing net income. C) It helps individuals throughout the organization to act independently and maximize the profitability of their departments. D) It deals with coordinating planning across the organization and is […]

  7) The approach often used when dealing with small amounts of underallocated or overallocated overhead is the ________ approach. A) adjusted allocation-rate B) proration C) write-off to cost of goods sold D) Both A and B are correct. 8) The ________ approach carries the underallocated or overallocated amounts to overhead accounts in the following year. A) adjusted allocation-rate B) proration C) write-off to cost […]

  Multiple Choice Questions 21. Worker’s compensation is based upon the principle that, victims of a work-related injury or illness: A) are granted benefits regardless of who is responsible for the accident, injury, or illness. B) must prove that the employer directly or indirectly caused the accident, injury, or illness in order to receive benefits. C) must sue the company in order to receive benefits. […]