31.For the year ended December 31, 2014, Burton Company had cash collections from customers of $100,000, cash paid to employees of $16,000, cash paid to suppliers of $50,000, cash used to retire long-term bonds of $16,000, and cash payments for dividends of $10,000. Cash provided by operating activities for 2014 is:    A. $8,000.   B. $34,000.   C. $18,000.   D. $50,000.     32.The only difference […]

  21) Actual costing helps managers get information earlier and take corrective measures to improve labor efficiency.   22) The budgeted indirect cost rate is actual indirect costs divided by budgeted quantity of the cost allocation base.   23) Direct costs are traced the same way for actual costing and normal costing. 24) Normal costing assigns indirect costs based on an actual indirect-cost rate.   […]

    41. Both U.S. GAAP and IFRS require the allowance method for uncollectible accounts, which involves estimating the amount of uncollectible accounts receivable associated with   A. the cumulative total of all accounting period’s total sales. B. the cumulative total of all accounting period’s credit sales. C. each accounting period’s total sales. D. each accounting period’s credit sales. E. the cumulative total of all accounting period’s cash sales.   42. Bad […]

  61. The Electronic Division’s margin is:  A. 8%. B. 10%. C. 11%. D. 80%. 62. The Electronic Division’s turnover is:  A. 08. B. 1. C. 11. D. 8. 63. Trigon Company has two divisions, the Retail Sales Division and the Wholesale Sales Division. The following information was gathered for the two divisions in 2012:    Trigon Company has set a target return on investment (ROI) of 15% for both divisions. Based on ROI, which division […]

  41.The adjusting entry required when amounts previously recorded as unearned revenues are earned includes: A.A debit to a liability. B.A debit to an asset. C.A credit to a liability. D.A credit to an asset. 42.Adjusting entries: A.Often include the Cash account. B.Usually are recorded at the beginning of the accounting period. C.Always involve at least one income statement account and one balance sheet account. […]

  167. Brown Company’s bank statement for September 30 showed a cash balance of $1,350. The company’s Cash account in its general ledger showed a $995 debit balance. The following information was also available as of September 30. a. A customer’s check for $100 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company’s account a $25 processing fee. […]

    101. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000.  Fixed factory overhead cost $105,000 Fixed selling and administrative costs 35,000 Variable direct materials cost per unit 4.34 Variable direct labor […]

  101. Based on the following information, what is earnings per share?  Common shares outstanding at the beginning     of the accounting period 210,000 Common shares outstanding at the end of the     accounting period 230,000 Weighted-average common shares outstanding     during the period 220,000 Preferred stock dividend declared and paid $  70,000 Preferred stock dividend in arrears $  20,000 Net income $500,000     […]

    31.The entry to record the completion of a job in a job costing system would cause:    A. An increase to the cost of goods manufactured account.   B. An increase in net income.   C. An increase to the cost of goods sold account.   D. A decrease to the work in process inventory account.     32.Ringgold Company experienced an event that affected its financial statements […]

  Learning Objective 7-2   1) Brooke’s Bike Company sold $3,780 worth of mountain bikes in June. Warranty expense is estimated to be 2% of sales. During June, Brooke’s Bikes replaced two faulty parts under warranty. The parts cost a total of $100. The warranty expense for June was ________. A) $65.60 B) $75.60 C) $100 D) $175.60   2) Brook’s Bike Company sold 80 […]