Business - Accounting And Taxation, Quizlet 2

Companies using a low-cost emphasis provide products and services that compete on features other than price

The general ledger process is concerned with preparing external financial statements, ensuring they conform to GAAP, generating Web-based forms of key financial statement and related business reporting via the Internet, and supporting the generation of both ad hoc and predetermined business reports

3

An unincorporated association of two or more persons to pursue a business for profit as co-owners is a:

4

When inventory costs are declining, __________ generally results in a lower amount of reported inventory.

5

In a fully integrated standard costing system, standard costs eventually flow into the

6

Suitable criteria in an attestation engagement may be available: PubliclyIn CPA's ReportA.YesYesB.YesNoC.NoYesD.NoNo

7

Which of the following lists represent the sequence of elements in developing the conceptual design specifications?

8

On January 1, 2018, the Husky Corporation acquired 90% of the Spartan Company's voting stock for $2,700,000. Spartan's net assets had a book value of $2,450,000; the fair value of Spartan's building was $325,000 greater than its book value. The book value of Husky's net assets immediately after the acquisition of Spartan totaled $6,850,000.What is total stockholders' equity on the January 1, 2018 consolidated balance sheet?

9

What is the amount of their child and dependent care credit?

10

Carolina Products Carolina Products sells a unique item with the following information available: Sales price $45 per unit Variable costs $15 per unit Fixed costs $5 per unit Units produced and sold 2,000 Refer to the Carolina Products information above. What is the contribution margin per unit?

11

Milar Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateDirect materials 7.7pounds$4.00per poundDirect labor 0.1hours$20.00per hourVariable overhead 0.1hours$4.00per hour In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for January is:

12

Which of the following data stores is updated for job specifications?

13

The double-declining-balance method of depreciation uses a declining percentage rate in determining the depreciation amount

14

Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?

15

Which of the following statements are true?

16

Activities in the Sargent Corporation's Assembly Department for the month of March follow: PercentComplete UnitsMaterialsConversionWork-in-process inventory, March 17,00070%35%Started into production during March66,000 Work-in-process inventory, March 315,00045%30% Using the weighted-average method, the equivalent units for materials for March would be:

17

An understatement of the ending inventory balance will cause:

18

Dickens Company has two divisions, Bloom and Heath. Bloom produces an item that Heath could use in its production. Heath currently is purchasing 5,000 units from an outside supplier for $44 per unit. Bloom has sufficient capacity and has variable costs of $35 per unit. The full cost to manufacture the unit is $41. Bloom currently sells 450,000 units at a selling price of $48 per unit.a. What will be the effect on Dickens Company's operating profit if the transfer is made internally? b. What will be the change in profits for Bloom if the transfer price is $41 per unit?c. What will be the change in profits for Heath if the transfer price is $41 per unit?

19

Data for September concerning Greenberger Corporation's two major business segments--Fibers and Feedstocks--appear below:Sales revenues, Fibers$750,000Sales revenues, Feedstocks$620,000Variable expenses, Fibers$368,000Variable expenses, Feedstocks$254,000Traceable fixed expenses, Fibers$98,000Traceable fixed expenses, Feedstocks$112,000Common fixed expenses totaled $344,000 and were allocated as follows: $175,000 to the Fibers business segment and $169,000 to the Feedstocks business segment.Required:Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

20

Sellers are only required to adjust the transaction price to reflect the time value of money when the contract has a significant financing component.

21

Company A's interest ratio has fallen below the level required by its lender. The lender may not take which action?

22

How is contingent consideration accounted for in an acquisition business combination transaction?

23

Engagement letters are used by most auditors in performing professional services.a. Describe the purpose of an engagement letter.b. List four items that are normally included in an engagement letter.

24

To calculate economic value added, several adjustments are made to after tax operating profit that include ________ and ________

25

The balance in the retained earnings account represents:

26

At the end of 2018, Schenck Corporation sold its only piece of equipment for $9,000 cash, a price that resulted in a loss of $3,000. During 2018, depreciation expense recognized by Schenck was $1,000. Schenck uses the indirect method to compute net cash flow from operating activities. In reconciling net income to net cash flow from operating activities under the indirect method, the required adjustments based upon the given data:

27

Pat has a dependent daughter and files as head of household. She has AGI of $376,000 . What percentage of the $4,050 personal exemption and $4,050 dependency exemption may she deduct on her 2016 income tax return?

28

Which of the following typically refers to the process of allocating the cost of long-term intangible assets used in the business over future periods?

29

April Corporation's Subchapter S election was voluntarily terminated for 2010. The first year that April would be eligible to reelect S corporation status is

30

On the balance sheet, the cumulative amount of plant and equipment already expensed is reported in an account called

31

NBC Corporation issued $620,000, 10%, 5-year bonds on January 1, 2017 for $670,288 when the market interest rate was 8%. Interest is paid semiannually on January 1 and July 1

32

Income Summary is a temporary account only used for the closing process.

33

If net sales revenue rises 5% while the average book value of fixed assets falls 5%, the:

34

The county received $75,000 from the annual sale of surplus general government property. The proceeds are deposited in the General Fund. The General Fund should report the proceeds as

35

Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed

36

A disadvantage of the high-low method is that the high point and low point may not be representative of the total data set available.

37

Winslow Corporation reported the following in the Stockholders' Equity section of its balance sheet at December 31, 2017: Common stock, $1 stated value $10,000 Additional paid-in capital—common 40,000 Retained earnings 25,000 Total contributed capital and retained earnings $75,000 Less: Treasury stock (at cost $20 per share) (2,000) Total stockholders' equity $73,000 How many shares of stock

38

In civil cases, the availability of data depends on the engaging party

39

For most companies, which of the following is the least critical application for disaster recovery purposes?

40

Determine the total liabilities at the end of the current year for Scott Industries

41

What are the benefits of an integrated enterprise-wide data model?

42

In reporting discontinued operations, which of the following should be shown in a separate section of the income statement?

43

In a(n) ________ lease the lessee will record the lease by debiting an asset account and crediting Lease Payable.

44

Under what circumstances may a partial § 121 exclusion be available even though the taxpayer has used the § 121 exclusion within the two-year period preceding the sale of the current residence?

45

The following data relates to Alpha Inc. and Sigma Solutions:RatiosAlpha Inc.Sigma SolutionsForeign Assets/Total Assets5763Foreign Sales/Total Sales6066Foreign Employment/Total Employment6360 Which of the following statements is true of Alpha and Sigma?

46

Natural resources are classified as intangible assets on the balance sheet

47

There are at least three types of partnerships that limit the partners' liability. They are 1)________, 2) ________, and 3)________.

48

The total amount of cost assigned to jobs that were completed during the year is the cost of goods sold.

49

In accrual accounting, accrued revenues are recorded as liabilities.

50

A corporation must report its deferred tax liabilities and assets in two classifications: gross current amounts and gross noncurrent amounts

51

The payment of a previously declared cash dividend will:

52

Channel stuffing, which is compliant with GAAP, refers to the sale of an unusually large quantity of a product to distributors, who are encouraged to overbuy through the use of deep discounts and/or extended payment terms.

53

On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. Babson pays the invoice on March 17, and takes the appropriate discount. The journal entry that Klein makes on March 17 is:

54

Under the Securities Act of 1933,

55

Charity service and bad debts in a government hospital that follows business-type accounting are:

56

A cash discount of $24 taken under the net method is recorded in:

57

Which of the following is an election or calculation made by the partner rather than the partnership?

58

The denominator of the rate of return on total assets ratio is the average total assets

59

What is the result of the math operation in cell E4?

∙	Change in place of employment.
∙	Health effects.
∙	To the extent provided for in the Regulations, other unforeseen circumstances.

Cash	7,644
Sales discounts	156
Accounts receivable		7,800

Cash	4,410
Sales discounts	90
Accounts receivable		4,500

Cash	7,644
Accounts receivable		7,644

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Business - Accounting And Taxation, Quizlet 2

Recent Packs

	Total Company	Fibers	Feedstocks
Sales	$1,370,000	$750,000	$620,000
Variable expenses	622,000	368,000	254,000
Contribution margin	748,000	382,000	366,000
Traceable fixed expenses	210,000	98,000	112,000
Segment margin	538,000	$284,000	$254,000
Common fixed expenses	344,000
Net operating income	$194,000