41. A detailed system of accounts allows the preparer of financial statements to decompose, or __________, each transaction to convey information about the effects of the transaction.  A. mixup B. disaggregate C. aggregate D. share E. combine   42. To maintain balance sheet equality, it is necessary to report every event and transaction in a dual manner.  If a transaction results in an increase in a Liability account, then which […]

  111. If accounts payable have increased during a period  A. revenues on an accrual basis are less than revenues on a cash basis. B. expenses on an accrual basis are less than expenses on a cash basis. C. expenses on an accrual basis are the same as expenses on a cash basis. D. expenses on an accrual basis are greater than expenses on a cash basis. 112. In calculating cash […]

    11) Both individual buyers and sellers in perfect competition A) can influence the market price by their own individual actions. B) can influence the market price by joining with a few of their competitors. C) have to take the market price as a given. D) have the market price dictated to them by government.     12) Both buyers and sellers are price […]

  11) The number of people receiving Medicare is expected to ________ by the year 2030. A) reach 5 million by B) stabilize C) decline by 10 percent D) grow to 80 million 12) The Congressional Budget Office estimates that most of the increase in federal spending on Medicare and Medicaid will be due to A) the aging population. B) increases in the cost of […]

    91.On December 31, Louis Jeweler’s made an adjusting entry to record $4,200 accrued interest payable on its mortgage. On January 10, the mortgage payment was made. This payment included interest charges of $6,300, $2,100 of which were applicable to the period from January 1 through January 10. When recording this mortgage payment, the accountant should:    A. Debit Interest Expense $2,100 and debit Accrued Interest […]

  111. Barksdale Manufacturing Inc. produces its products in batches containing 100 units. Barksdale randomly samples 15 of the units in each batch for quality control. The costs of performing these random sample tests would most likely be which type of quality cost? A. External failure costB. Prevention costC. Internal failure costD. Appraisal (detection) cost   112. CLR Inc. is a clothing manufacturer. Recently, CLR made and produced about 2,000 shirts. During […]

  81) Suppose there is only one movie theatre in a town and the equilibrium price and quantity for movie admissions is $7 and 940 visits per week. Now suppose the government imposes a tax of $3 per movie admission, and the new equilibrium price and quantity are $8.75 and 750 visits per week. What is the direct burden of this tax? A) $937.50 B) […]

    56.Hanover Glassware produces crystal serve ware and uses process costing. At the start of May, 2,300 units were in process. During May, 11,000 units were completed and 2,000 units were in process at the end of May. These units in process were 80% complete with respect to material and 30% complete with respect to conversion costs. Other information is as follows:   Work […]

  101. Alliance Corp. issues 1,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to:  A. Common Stock $14,000. B. Common Stock $10,000 and Paid-in Capital in Excess of Par Value $4,000. C. Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $4,000. D. Common Stock $10,000 and Retained Earnings $4,000. 102. The journal entry to issue 1,000,000 […]

    Fill in the Blank Questions  Port Pharmacy is considering the purchase of a copying machine, which it will make available to customers at a per copy charge. The copying machine has an initial cost of $8,500, an estimated useful life of five years, and an estimated salvage value of $2,500. The estimated annual revenue and expenses relating to operation of the machine are […]