21) The sales-mix variance will be unfavorable when: A) the actual sales mix shifts toward the less profitable units B) the composite unit for the actual mix is greater than for the budgeted mix C) actual unit sales are less than budgeted unit sales D) the actual contribution margin is greater than the static-budget contribution margin   22) The sales-mix variance will be favorable […]

  Matching       150. Listed below are ten terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term placing the letter designating the term in the space provided.   Terms: a.   Asset turnover b.   Cash flow to sales c.   Cash return on assets d.   Direct method e.   Financing activities f.    Indirect method g.   […]

  51. During 2012, Victoria Group: (1) received cash of $5,000 billed to a customer in 2011; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issued; (4) paid dividends of $8,000 to its stockholders; (5) borrowed $40,000 from a local bank; and (6) purchased its own shares of common stock for $10,000. What is Victoria Group’s cash flow from […]

  13.3   Learning Objective 13-3   1) If the allowance method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer’s account as uncollectible? A) Bad Debts Expense B) Accounts Receivable C) Accounts Payable D) Bad Debts Recovered   2) If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited […]

  11) Which of the following statements best defines the principle of integrity as per AICPA’s Code of Professional Conduct ET Sec. 54, Article III? A) It requires a member to be honest and candid within the constraints of client confidentiality. B) It urges the members to adequately plan and supervise the performance of professional services. C) It precludes relationships that may appear to impair […]

    85. A corporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 12%.  The straight-line method is adopted for the amortization of bond discount or premium.  Which of the following statements is true?  A. The amount of the annual interest expense is computed at 10% of the bond carrying amount at the beginning […]

  112.Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. What journal entry should Andrew use to account for direct materials used in March:     A. Debit Raw Materials Inventory $141,000; credit Accounts Payable $141,000. […]

    161. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of X’s and 35,000 units of Y’s. Related data are:    Unit Selling Price Unit Variable Unit contribution Product Price Cost Margin X $110.00 $70.00 $40.00 Y    70.00   50.00 $20.00         Assuming that last year’s fixed costs totaled $675,000. What was Rusty Co.’s break-even […]

    51. The performance management approach that requires managers to keep a record of specific examples of effective and ineffective performance is called:  A. behaviorally anchored rating scales. B. behavior observation scales. C. critical incidents. D. organizational behavior modification. Critical incidents give specific feedback to employees about what they do well and what they do poorly, and they can be tied to the company’s strategy by focusing on incidents […]

  95. Peters and Chong are partners and share equally in income or loss. Peters’ current capital balance is $140,000 and Chong’s is $130,000.Peters and Chong agree to accept Aaron with a 30% interest in the partnership.Aaroninvests $98,000 in the partnership. The amount credited to Aaron’s capital account is: A. $81,000. B. $102,600. C. $110,400. D. $98,000. E. $114,533. 96. Peters,Chong, and Aaron are dissolving their partnership. Their partnership agreement allocates each […]