51.Which of the following is a method used to reduce an expected labor shortage that is low on revocability?    A. Overtime   B. New external hires   C. Temporary employees   D. Outsourcing   E. Retrained transfers     52.Which of the following is most likely to lead to a successful downsizing?    A. Avoiding indiscriminant reductions   B. Informing employees that they are laid off via emails   C. Downsizing at […]

  61. Game Systems Corporation has grown significantly over the past year. The end-of-year supplies on hand totaled $200, and purchases totaled $3,000, and supplies on hand at the beginning of the year amounted to $180. How much will Game Systems report as supplies expense for the current year?  A. $2,980 B. $3,180 C. $3,200 D. $3,000 62. On October 1, 2012, Glover Company borrowed $200,000 on a two-year, 12% note, […]

    61. Which of the following is not true? A. Callable preferred shares provide the issuer with the right to repurchase preferred shares at a specified price, B. If financing becomes available at a cost lower than the rate fixed for the preferred shares, the issuing firm can reduce its financing costs by issuing new securities and then exercising its option to reacquire the outstanding callable preferred shares […]

    34.Accounting information that is capable of making a difference in a decision by the user of the report is    A. comparable.   B. reliable.   C. relevant.   D. neutral.         35.Select the statement below that does notcorrectly describe the qualitative characteristic of reliability.    A. Reliability means that the information should be dependable.   B. Reliable information is a faithful representation of the company’s financial affairs. […]

    51. Which of the following is not a product cost?A.  Direct labor.B.  Indirect manufacturing costs.C.  Direct materials.D.  Manufacturing overhead.E.  Advertising costs.     52. Using a traditional costing approach, which of the following manufacturing costs are assigned to products?A.  Direct materials and direct labor.B.  Direct labor and variable manufacturing overhead.C.  Fixed manufacturing overhead, direct materials, and direct labor.D.  Variable manufacturing overhead, direct materials, […]

  32. Which of the following should not appear within the asset section of a federal agency balance sheet? A)Net Position – Unexpended Appropriations B)Fund Balance with Treasury C)Property and Equipment D)All of the above 33. Which of the following is true regarding the Balance Sheet of a federal agency? A)The balance sheet is prepared using the economic resource measurement focus and accrual accounting. B)Assets are measured […]

  167. Comparative information taken from the Aster Company financial statements is shown below:        2008__          2007__ (a)Notes receivable$    10,000$          -0- (b)Accounts receivable172,000140,000 (c)Retained earnings30,000(40,000) (d)Sales830,000750,000 (e)Operating expenses170,000200,000 (f)Income taxes payable25,00020,000 InstructionsUsing horizontal analysis, show the percentage change from 2007 to 2008 with 2007 as the base year.  168. The following items were taken from the financial statements of Saintley, Inc., over a three-year period:  Item     […]

  41) A company has total assets of $500,000, a required rate of return of 10%, and operating income for the year was $200,000. What is the residual income? A) $150,000 B) $200,000 C) $250,000 D) $480,000 E) $175,000   42) Which of the following performance measures is more likely to promote goal congruence? A) inventory turnover B) marginal income C) residual income D) return […]

  41.A company that maintains a cash balance of more than is necessary for its day-to-day needs a.is likely to have cash flow problems. b.is not using working capital to its ideal advantage. c.is likely to have a very low solvency. d.has a problem with physical controls. 42.Accounts used to cover day-to-day office expenses are referred to as a.petty cash. b.bad debts. c.cash restrictions. d.compensating […]

    91.At the end of the current year, the owners’ equity in Barclay Bakery is $246,000. During the year, the assets of the business had increased by $120,000 and the liabilities had increased by $72,000. Owners’ equity at the beginning of the year must have been:    A. $198,000.   B. $174,000.   C. $284,000.   D. $438,000.       92.At the end of the current year, the […]