31) Other than price, what other items should Heck’s Kitchens consider before accepting this one-time-only special order? A) reaction of shareholders B) reaction of existing customers to the lower price offered to Mr. Louis Cifer C) demand for cherry cabinets D) price is the only consideration 32) If Louis Cifer wanted a long-term commitment for supplying this product, this analysis: A) would definitely be […]

  62.A type of production that yields customized products or services for each customer is called:    A. Customer orientation production. B. Job order production. C. Just-in-time production. D. Job lot production. E. Process production. 63.A company that makes which of the following types of products would best be suited for a job costing system?    A. Fruit juice B. Bathing suits C. Snack chips D. Compact discs E. Custom jewelry 64.The target cost for a job […]

  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 […]

    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 […]

1. Which of the following underlying assumptions for the conceptual framework is the reason the dollar is used in the preparation of financial statements?  A. Economic entity B. Continuity C. Time period D. Monetary unit 2. Which of the following is an assumption made in the preparation of the financial statements?  A. Financial statements are prepared for a specific entity that is distinct from the entity’s owners. B. The current market value is […]

  91. In evaluating the profit center manager, the income from operations should be compared: A. across profit centersB. to historical performance or budgetC. to the competition’s net incomeD. to the total company earnings per share 92. Income from operations of the Commercial Aviation Division is $2,225,000. If income from operations before service department charges is $3,250,000: A. operating expenses are $1,025,000B. total service department charges are $1,025,000C. noncontrollable charges are $1,025,000D. direct manufacturing charges are $1,025,000 […]

    71. The _____  uses only sales revenues and net income and an analyst nearly always can calculate, regardless of format and display differences in income statement presentations.  A. acid test or quick ratio B. current ratio C. asset turnover ratio D. profit margin percentage E. revenue turnover ratio   72. Revenue recognition is among the most complex issues in financial reporting.  The quantity and complexity of the authoritative guidance for […]

    104. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:    RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $47,200 $30,720   Direct operating expenses 27,200 20,040   Net sales 98,000 68,000   Interest expense     $  2,040 General overhead     18,160 Income tax     4,700         The income […]

  11) Allison and Josh are partners in a business. Allison’s capital is $60,000 and Josh’s capital is $100,000. Profits for the year are $80,000. They agree to share profits and losses as follows:     Allison Josh Salaries $20,000 $40,000 Interest on capital 10% 10% Remaining profits and losses 3/5 2/5   Allison’s share of the profits before paying salaries and interest on capital […]

  169.On November 1, Jovel Company loaned another company $100,000 at a 6.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company’s annual accounting period ends on December 31. The adjusting entry needed on December 31 is:    A.No entry required. B.Debit Interest Expense, $5,000; credit Interest Payable, $5,000. C.Debit Interest Expense, $1,000; credit Note […]