101.Clinton prepares monthly financial statements. Which of the following violates the matching principle?    A.A portion of the salary payments made this month are not recognized as expense because some of the work was done by employees last month.   B.The premium on a six-month insurance policy is charged immediately to expense.   C.Expenses for the period exceed revenues.   D.The cost of advertising […]

  11) If Mr. Gladstone wanted a long-term commitment for supplying this product, what price would most likely be quoted to him? A) $1,000 B) $1,200 C) $1,290 D) $1,400 E) $1,075   Answer the following question(s) using the information below.   Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic […]

  95.A list of all the accounts in the accounts receivable ledger with their balances and the total is a:    A.Schedule of accounts. B.Controlling account. C.Schedule of accounts receivable. D.Subsidiary ledger. E.Special journal. 96.The Accounts Payable account in the general ledger is:    A.A controlling account for the subsidiary accounts payable ledger. B.The account that controls the purchases journal. C.The subsidiary account to the purchases journal. […]

    33. Which company would most likely use a process costing system?  A. Bic Pens. B. Pepsi Cola. C. Mars Candy. D. All three.     34. In either a job order or a process costing system, credits to the Materials Inventory account represent:  A. The cost of materials purchased during the period. B. The cost of materials relating to finished goods. C. The cost of unused materials returned to the inventory. D. The […]

  11) Which of the following is a difference between an individual’s personal zone and his or her social zone? A) Personal zone is the space that is 6 to 18 inches from the individual, whereas social zone is the space that is 4 to 10 feet from the individual. B) Personal zone is reserved for intimate relationships, whereas social zone is reserved for friends […]

  74. Read each of the following transactions for Enterprises Security Systems. Determine the accounts and amounts to be debited and credited in the necessary end-of-July adjustments.   A. On July 1, 2013, Enterprises Security Systems, a new firm, bought supplies for $2,300. The $2,300 was debited to the Supplies account. An inventory of supplies at the end of June showed that supplies costing $900 were […]

    128.Happiness Catering has total assets of $385 million. Its total liabilities are $100 million and its equity is $285 million. Calculate its debt ratio.    A. 35.1%.   B. 26.0%.   C. 38.5%.   D. 28.5%.   E. 58.8%. Debt Ratio = Total Liabilities/Total AssetsDebt Ratio = $100 million/$385 million; Debt Ratio = 0.2597 = 26.0%       129.All of the following statements accurately describe the debt ratio […]

  111. The Miracle Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2009, at 96. The journal entry to record the issuance will show a  A. debit to Discount on Bonds Payable for $40,000. B. debit to Cash of $1,000,000. C. credit to Bonds Payable for $960,000. D. credit to Cash for $960,000. 112. The Reagan Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2009, at 95. […]

    96.A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals:    A.$200.   B.$1,564.   C.$1,568.   D.$1,600.   E.$1,800. Cash Paid = ($1,800 – $200) * .98 = $1,568       […]

  84.The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan, and a statewide agency plan.  The City would include in its CAFR pension trust fund financial statements for: A)All three plans. B)The locally administered plan plus the statewide agency plan. C)Both statewide plans. D)The locally administered plan only. 85.The City of […]