101. Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. If Bard […]

84.A balance sheet that displays only component percentages is called a   a. segmented balance sheet. b. common-size balance sheet. c. condensed balance sheet. d. comparative balance sheet.       85.One reason that a common-size statement is a useful tool in financial performance evaluation is that it enables the user to   a. make better comparisons of two companies of different sizes in the […]

    41. _____ refers to the degree to which work units are grouped based on functional similarity or similarity of work flow.  A. Departmentalization B. Centralization C. Decentralization D. Work-flow analysis Departmentalization refers to the degree to which work units are grouped based on functional similarity or similarity of work flow. It is one among the two most critical dimensions of organization structure along with centralization.     42. What […]

  11) The estimated net realizable method allocates joint costs on the basis of A) expected final sales value less separable costs of production and marketing. B) value added after the split off point. C) sales value less value added after the split off point. D) revenue less all direct manufacturing costs after split off point. E) relative numbers of physical units of each product. […]

    61. Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:  A. Financing activities B. Investing activities C. Operating activities D. Direct activities E. Indirect activities     62. The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:  A. Operating activities. […]

  Multiple Choice Questions 27.One purpose of closing entries is to give zero balances to   A.asset and liability accounts. B.liability and capital accounts. C.revenue and expense accounts. D.expense and capital accounts. 28.Use the following account balances from the adjusted trial balance of ABCConsulting  Select the correct closing entry that ABCConsulting would make to close their revenue account(s) at the end of the accounting period.   A.debit FeesRevenue […]

    68. Cigna Corporation’s 2010 net income is smaller than net cash flow from operating activities. Which of the following would not be an explanation of why net income is smaller than net cash flow from operating activities?  A. Cigna paid dividends to shareholders during 2010. B. Cigna’s accounts payable increased during 2010. C. Cigna recognized depreciation expense in 2010. D. Cigna sold equipment at a loss in 2010. […]

    112. On January 3, 2011, total liabilities are:  A. $370,000. B. $350,000. C. $300,000. D. $70,000. $90,000 + $260,000 = $350,000     Ceramic Products, Inc. reports these account balances at January 1, 2009 (shown in alphabetical order):    On January 5, Ceramic Products collected $12,000 of its accounts receivable and paid $11,000 on its note payable.   113. In a trial balance prepared for Ceramic Products on January […]

  6) Bright Garden Center had the following data for May:     Cost Price Retail Price Beginning inventory $1,000 $1,600 Purchases 2,500 4,650 Sales   4,850   The cost of the estimated inventory on May 31 under the retail method is: A) $616. B) $784. C) $1,400. D) $3,500. 7) Chocolate Heaven had the following data for November:     Cost Price Retail Price […]

    31.When assessing the reliability of a measure, one might be interested in knowing how scores on the measure at one time relate to scores on the same measure at another time. This is called:    A.test-interdependency.   B.test-retest reliability.   C.mutual exclusivity.   D.test utility.   E.test generalizability.     32.Which of the following steps can help an organization increase the reliability of its […]