108.The Discount on Bonds Payable account is:    A.A liability.   B.A contra liability.   C.An expense.   D.A contra expense.   E.A contra equity.         109.A discount on bonds payable:    A.Occurs when a company issues bonds with a contract rate less than the market rate.   B.Occurs when a company issues bonds with a contract rate more than the market […]

  172.Blatt Company, a manufacturer of slippers, began operations on June 1 of the current year. During this time, the company produced 210,000 units and sold 185,000 units at a sales price of $40 per unit. Cost information for this period is shown in the following table:  Production costs Direct materials$5.00 per unit Direct labor$4.75 per unit Variable overhead$302,000 in total Fixed overhead$405,000 in total […]

    63. If the actual amount of direct materials used in production was less than the standard amount allowed for units produced, there was:  A. A favorable materials price variance. B. A favorable total materials variance. C. A favorable materials quantity variance. D. An unfavorable materials quantity variance.     64. Dawson Company has a union contract which calls for an 8% cost of living increase in the wages paid […]

  81. Which of the following statements is correct using the direct costing concept? A. All manufacturing costs are included in the calculation of cost of goods manufacturedB. Only fixed costs are included in the calculation of cost of goods manufactured while variable costs are considered period costs.C. Only variable costs are included in the calculation of cost of goods manufactured while fixed costs are considered period costs.D. All manufacturing costs […]

  11) The entry to record the payment of a cash dividend would include a: A) debit to Dividends Payable; credit to Cash. B) debit to Retained Earnings; credit to Cash. C) credit to Dividends Declared, debit to Cash. D) debit to Cash, credit to Retained Earnings.   12) On the date of record, the journal entry would include: A) a debit to Dividend Payable. […]

  46)  What is the combined total of the flexible budget variances? 46)  ______ A)  $102,650 unfavourable B)  $99,000 unfavourable C)  $75,150 favourable D)  $75,150 unfavourable E)  $78,500 unfavourable  47)  What is the price variance of the direct materials? 47)  ______ A)  $15,213 favourable B)  $11,500 unfavourable C)  $16,875 favourable D)  $10,175 unfavourable E)  $11,500 favourable  48)  What is the price variance of the direct […]

  88.A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a(n):    A.Capital expenditures budget. B.Operating budget. C.Rolling budget. D.Cash budget. E.Income statement. 89.Which of the following accounts would appear on a budgeted balance sheet?    A.Income tax expense. B.Accounts receivable. C.Sales commissions. […]

  Answer the following questions using the information below:   Wallace Company provides the following data for next year:   MonthBudgeted Sales January$120,000 February108,000 March132,000 April144,000   The gross profit rate is 35% of sales. Inventory at the end of December is $21,600 and target ending inventory levels are 20% of next month’s sales, stated at cost.   45) What is the amount of purchases […]

  140. Financial Statement data for the years ended December 31 for Parker Corporation is as follows:      2012      2011Net Sales        $2,595,600      $2,409,500Accounts ReceivableBeginning of the year      $  390,000            $400,000End of the year      434,000            390,000a)  Determine the accounts receivable turnover for 2012 and 2011.b)  Determine the number of days’ sales in receivables for 2012 and 2011.c)  Does the change in accounts receivable turnover and […]

    81. U.S. GAAP and IFRS require firms to classify derivatives as   A. fair value hedges, only. B. cash flow hedges, only. C. not a hedging instrument, only. D. fair value hedges or cash flow hedges, only. E. fair value hedges, cash flow hedges, or not a hedging instrument.   82. Which of the following is/aretrue?  A. Derivatives designated as cash flow hedges or fair value hedges receive special accounting treatment. […]