71. Canadian Beer reported they sold equipment for $222 million cash and purchased $1,515 million of new equipment using cash. The equipment sold had a net book value of $150 million. Cash flow from investing activities would show  A. an inflow of $222 million and outflow of $1,515 million. B. an inflow of $222 million and outflow of $150 million. C. cash paid for equipment of $1,293 million. […]

    121. Inventory turnover ratio  A. indicates how fast firms sell their inventory items. B. measured in terms of the rate of movement of goods into and out of the firm. C. equals cost of goods sold divided by the average inventory during the period.  all of the above E. none of the above   122. Various techniques are used in the analysis of financial data to emphasize the comparative […]

  41) Cartwright Custom Carpentry manufactures chairs in its Processing Department, and uses the FIFO cost flow assumption. Direct Materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection some units are spoiled due to […]

    91. A company’s income statement showed the following: net income, $124,000; depreciation expense, $30,000, and gain on sale of plant assets, $14,000. An examination of the company’s current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or […]

  151. The balanced scorecard measures financial and nonfinancial performance of a business. The balanced scorecard measures four areas. Identify one of the following that is not included as a performance measurement.  A. Internal Process B. Financial C. Innovation and Learning D. Employees 152. The following is a measure of a manager’s performance working in an investment center.  A. budget performance report B. rate of return and residual income measures C. divisional income statements […]

  Multiple Choice Questions   31. A standard cost system may be used  A. only with a process cost system. B. only with a job order cost system. C. with either a job order cost system or a process cost system. D. in neither a job order cost system or a process cost system.   32. Job order cost accounting is appropriate  A. when there are continuous operations on standard types of […]

  54) A hospital receives $1,000,000 monthly in funding from various sources. Annual fixed costs are projected to be $5,000,000 and the variable cost per patient, across all departments is projected to be $534.80. Last year they treated 11,500 patients. The hospital expects a 5% increase in patients this year. A governing bylaw requires that the hospital be run as a non-profit organization. What is […]

  11.2   Identify the differences among relevant costs for short-term and long-term production output decisions.   1) All fixed costs are irrelevant in relevant-cost analysis. 2) All variable costs are relevant in relevant-cost analysis.   3) Insourcing is the process of producing goods and services within the firm rather than purchasing them from an outside supplier.   4) An example of an outsourcing process is […]

  6) The budgeted indirect-cost rate for each cost pool is computed as ________. A) budgeted annual indirect costs divided by budgeted annual quantity of cost allocation base B) budgeted annual quantity of cost allocation base divided by budgeted annual indirect costs C) actual annual indirect costs divided by budgeted annual quantity of cost allocation base D) budgeted annual indirect costs divided by budgeted actual […]

1. On January 2, Well Corporation sold merchandise with a gross price of $140,000 to Priority Corporation with terms of 2/10, n/30. How much sales discounts would be recorded if payment was received on January 8?  A. $     2,800B. $            0C. $ 137,200D. $ 140.000   2. Records Inc. received payment of a $20,000 accounts receivable within 10 days. The terms were 2/10, n/30. Records would show a: A. trade discount of $400.B. trade […]