128. Finch Company began its operations on March 31 of the current year.  Finch Co. has the following projected costs:     April May June Manufacturing costs (1) $156,800 $195,200 $217,600 Insurance expense (2) 1,000 1,000 1,000 Depreciation expense 2,000 2,000 2,000 Property tax expense (3) 500 500 500         (1)      3/4 of the manufacturing costs are paid for in the […]

  Answer the following questions using the information below:   Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In 2011, SII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.   Budgeted quantityBudgeted price Direct materials0.20 pounds$25 per pound Direct labor0.10 hours$15 per hour   During July, SII produced and sold 5,000 containers […]

    45. After a corporation declares a cash dividend, what takes place on the date of record?  A. Cash decreases. B. Liabilities decrease. C. Equity decreases. D. No entry is necessary.   46. When a corporation pays a previously declared cash dividend, which of the following is true?  A. Cash increases. B. Liabilities decrease. C. Equity decreases. D. No entry is necessary.   47. When a corporation declares a stock dividend, which of the following […]

    51.Which of the following should be the first step to take as a progressive discipline measure?    A.Temporary suspension   B.Unofficial verbal warning   C.Last chance notification   D.Threat of suspension   E.Termination     52.In a typical progressive discipline program, which of the following should be the step taken before terminating an employee?    A.Unofficial verbal warning   B.Official written warning   C.Last chance […]

  141. The point where the profit line intersects the horizontal axis on the profit-volume chart represents:  A. the maximum possible operating loss B. the maximum possible operating income C. the total fixed costs D. the break-even point 142. The point where the profit line intersects the left vertical axis on the profit-volume chart represents:  A. the maximum possible operating loss B. the maximum possible operating income C. the total fixed costs D. the break-even […]

  65) Qualitative factors are important in the decision-making process even though they cannot be measured numerically.   66) In a one-time special order situation, if the price offered by the buyer is less than the absorption cost per unit, the special order may still be profitable since absorption costs include allocated fixed manufacturing overhead.   67) In relevant-cost analysis, managers should not consider all […]

  187. Wings Over San Diego is a publicly traded company with preferred and common stock issued. As of January 1st it had 50,000 shares of $100 par, 2% preferred stock outstanding and 250,000 shares of $10 par common stock outstanding.  (a)On January 31st the Board of Directors issues a requirement to purchase 5,000 shares of common stock at market price. The shares are purchased at […]

  101. The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share.  The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to  A. Preferred Stock for $700,000. B. Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value—Preferred Stock for $200,000. C. Preferred Stock for $500,000 and Retained […]

    141. In capital rationing, alternative proposals that survive initial and secondary screening are normally evaluated in terms of:  A. present value B. non-financial factors C. maximum cost D. net cash flow   142. A company is contemplating investing in a new piece of manufacturing machinery.  The amount to be invested is $150,000.  The present value of the future cash flows is $143,000.  Should the company invest in this project?  […]

  61. A company purchased supplies for cash which will be consumed during future months. Which of the following correctly describes the impact of the supplies purchase on the financial statements?  A. Total assets will remain unchanged. B. Total assets will decrease. C. Operating expenses will increase. D. Operating income will decrease. 62. A company purchased supplies for cash which will be consumed during future months. Which of the following does […]