51. Which of the following is true regarding the U.S. Internal Revenue Service   A. permits firms to use the allowance method to calculate the tax deduction for bad debts B. requires that firms recognize bad debt expense only when they conclude an account is not collectible C. permits firms to use the aging of accounts receivable method to calculate the tax deduction for bad debts D. permits […]

    21. The adjustment for changes in operating working capital accounts depends in part on a firm’s rate of growth. _____ firms usually experience significant increases in accounts receivable and inventories.    A. Introduction phase B. Late maturity C. Declining D. Mature E. Rapidly growing   22. The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations depends […]

    31. A _____ is a financial contract in which the borrower and the lender agree to certain conditions about repayment, operating policies, other borrowing activities while they are outstanding, and other provisions.   A. preferred stock B. common stock C. paid-in-capital D. bond E. a restriction on retained earnings   32. Which of the following is/are true?   A. A bond indenture refers to the financial contract underlying bonds. B. Bonds appear […]

  7) The entry to record the disposal of a laptop computer with a cost of $2,500 and an accumulated depreciation of $1,500 would be: A) debit Depreciation Expense, $2,500; credit Equipment $2,500. B) debit Accumulated Depreciation $1,500; debit Loss on Disposal of an Asset $1,000; credit Equipment $2,500. C) debit Equipment $2,500; credit Accumulated Depreciation $2,500. D) debit Cash $2,500; credit Equipment $2,500. 8) […]

    35. Which of the following is not a period cost?  A. Depreciation on factory equipment. B. Depreciation on the retail store building. C. Salesperson salaries. D. Office supplies used.     36. The set of linked activities and resources needed to create and deliver a product or service to the customer is referred to as:  A. The budget. B. The value chain. C. The operating cycle. D. The production process.     37. Which […]

  134. Beginning inventory, purchases and sales data for widgets are as follows:    Apr 3 Inventory   15 units @ $30        11 Purchase   12 units @ $27        14 Sale   18 units            21 Purchase   7 units @ $25        25 Sale   10 units                   Complete […]

  71. A company purchased $20,000 of inventory during February and will pay for it during March. Which of the following statements is false assuming the inventory was sold during March?  A. The company’s accounts payable will include the $20,000 on the February month-end balance sheet. B. The statement of cash flows will report an operating cash outflow of $20,000 during March. C. The income statement will report cost […]

  31. A primary outcome of work analysis will be the ability to A) identify candidates for promotion B) determine the activities that make up a job C) identify the key elements of the corporate culture D) Test the organization’s compensation practices E) Investigate and document individual employee competencies 32. Which of the following is a basic principle of work analysis? A) The analysis should […]

    147. Fortune Drilling Company acquires a mineral deposit at a cost of $5,900,000. It incurs additional costs of $600,000 to access the deposit, which is estimated to contain 2,000,000 tons and is expected to take 5 years to extract. What journal entry would be needed to record the expense for the first year assuming 418,000 tons were mined? A. Debit Depletion Expense $1,233,100; credit Accumulated […]

    63.The Fine Point Company currently produces all of the components for its one product; an electric pencil sharpener. The unit cost of manufacturing the motor for this pencil sharpener is:  The company is considering the possibility of buying this motor from a subcontractor and has been quoted a price of $3.60 per unit. The relevant cost of manufacturing the motor to be considered in […]