Business - Accounting And Taxation. Quizlevel4

A balance sheet account that is usually reported at present value is

Which of the following is true regarding accounting for investments by state and local governmental units?

A limit test is a

Van Beeber Corporation's comparative balance sheet and income statement for last year appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceCash and cash equivalents$58,000 $34,000 Accounts receivable 48,000 36,000 Inventory 56,000 67,000 Prepaid expenses 24,000 16,000 Long-term investments 280,000 220,000 Property, plant and equipment 580,000 580,000 Less accumulated depreciation 270,000 235,000 Total assets$ 776,000 $ 718,000 Accounts payable$32,00053,000Accrued liabilities38,00021,000Income taxes payable 61,000 31,000 Bonds payable 90,000 120,000 Common stock 80,000 60,000 Retained earnings 475,000 433,000 Total liabilities and stockholders' equity$ 776,000 $ 718,000 Income

5

Prepare journal entries to record the following transactions and events for April using a job order costing system.

6

A responsibility income statement shows the revenue and expenses of each cost center within a particular part of a business

7

The ACFE does NOT include which of the following major categories of occupational fraud?

8

In 2000, Genentech reported a current ratio of 3.96 and in 2001 it was 3.39. In examining their balance sheet for 2001, they disclosed current assets of $2,209 million and current liabilities of $652 million. In 2000, they had no short-term borrowings but they disclosed $150 million in new short term borrowing for 2001. What would Genentech's current ratio have been in 2001 if they had not borrowed those funds?

9

Holl Corporation has provided the following data for November. Denominator level of activity 5200machine-hoursBudgeted fixed manufacturing overhead costs$63,440 Standard machine-hours allowed for the actual output 5500machine-hoursActual fixed manufacturing overhead costs$62,400 Required:a. Compute the budget variance for November.b. Compute the volume variance for November.(Input all amounts as positive values.)a.Budget varianceb.Volume variance

10

Croce, Inc., is investigating an investment in equipment that would have a useful life of 7 years. The company uses a discount rate of 8% in its capital budgeting. The net present value of the investment, excluding the salvage value, is −$515,967. To the nearest whole dollar how large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

11

The computer is the primary tool of the tax professional. The tax professional uses the computer for all of the following client services except

12

The net income for the year was $720,000; total assets at the beginning of the year was

13

Tax systems with regressive rate structures result in a proportionally heavier tax burden on persons with smaller tax bases.

14

An automated storage and retrieval system (AS/RS) is a computer-controlled machine that stores and retrieves parts and tools

15

Rent-a-Wreck leases cars and offers low prices to its customers because it requires the customers to pay a full year's rent at the time of signing the lease. Rent a Wreck records the revenue at the time the customer signs the lease

16

The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best cash payback. Machine AMachine BMachine CAnnual cash flow$ 40,000$ 50,000$ 75,000Average investment300,000250,000500,000

17

The operating income calculated using variable costing and absorption costing amounted to $9400 and $11,200, respectively. There were no beginning inventories. Determine the total number of units produced during the year.

18

Select the correct statement regarding relevant costs and revenues.

19

Temporary Regulations must be followed by taxpayers until they are superseded or until they expire

20

When a company remeasures the value of a discontinued operation, a value adjustment is made to recognize ________

21

Data for January for Bondi Corporation and its two major business segments, North and South, appear below: Sales revenues, North$647,000 Variable expenses, North$375,400 Traceable fixed expenses, North$77,300 Sales revenues, South$499,100 Variable expenses, South$284,800 Traceable fixed expenses, South$64,600 In addition, common fixed expenses totaled $175,100 and were allocated as follows: $90,900 to the North business segment and $84,200 to the South business segment.A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

22

The basis for the journal entry recording direct labor for the period is a summary of the

23

Reye Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment$200,000 Expected life of the project 4 Salvage value of equipment$0 Annual sales$430,000 Annual cash operating expenses$320,000 Working capital requirement$20,000 The company's income tax rate is 30% and its after-tax discount rate is 9%. The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The total cash flow net of income taxes in year 2 is:

24

Frank and Marion, husband and wife, file separate returns. Frank and Marion live in a common law state. Frank's salary is $42,000 and Marion's salary is $46,000. Marion receives dividend income of $4,000 from stock inherited from her parents. Frank receives interest income of $1,000 from bonds purchased with his salary after marriage. Frank and Marion receive $3,200 dividend income from stock they purchased jointly. Marion's income would be

25

Axle Co.'s accounts receivable turnover was 9.9 for this year and 11.0 for last year. Betterman's turnover was 9.3 for this year and 9.3 for last year. These results imply that:

26

Trend analysis is another name for ____________________ analysis

27

Identify which of the following statements is false.

28

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: MonthlyFixed CostVariable CostPer Deb SoldSales commissions $0.90 Shipping $1.40 Advertising$50,000$0.20 Executive salaries$60,000 Depreciation on office equipment$20,000 Other$40,000 All of these expenses (except depreciation) are paid in cash in the month they are incurred.If the company has budgeted to sell 15,000 Debs in February, then the total budgeted fixed selling and administrative expenses for February is:

29

When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be

30

In most states, if an employer has very few former employees who collect unemployment compensation, the employer qualifies for a lower state unemployment tax rate.

31

The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?

32

Obtaining an understanding of an internal control involves evaluating the design of the control and determining whether the control has been:

33

When estimating cost functions, engineering analysis based on observations of employee behavior has the following disadvantage: ________

34

When a company acquires treasury stock, what effect does this transaction have on earnings per share and legal capital, respectively?

35

Inventoriable costs are expensed on the income statement ________

36

Use this information to answer the following questions:1100Cash2170Property taxes payable1120Short-term investments2180Rent payable1130Notes receivable2200Notes payable (long-term)1140Accounts receivable3100Common stock1145Loan receivable3200Retained earnings1150Interest receivable5000Sales revenue1160Other accrued receivables5300Interest revenue1200Inventory6000Cost of goods sold1250Supplies6200Advertising expense1260Prepaid rent6210Miscellaneous expense1320Buildings and equipment (B&E)6220Depreciation expense1325Accumulated depreciation-B&E6230Insurance expense2110Notes payable (short-term)6240Property tax expense2120Interest payable6250Rent expense2130Accounts payable6260Supplies expense2140Deferred service revenue6270Salaries expense2150Salaries payable6400Interest

37

The inventory turnover ratio is computed by dividing cost of goods sold by average merchandise inventory.

38

Which of the following statements is true about capital investment decisions:

39

Which of the following is not a test that must be met for a child to be considered a dependent?

40

The LIFO conformity rule requires that if a company uses LIFO in reporting income to stockholders, it also must use LIFO on its tax return

41

In a diversified company, segments may be represented by different industries, geographical markets, and major customers

42

Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance

43

Concerning the Indirect Statement of Cash Flows, select the correct statement

in Business

A) The management of a company would mostly utilize the Indirect Statement of Cash Flows as a management tool since it starts with Net Income from the Income Statement.
B) The management of a company would not normally distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it would most likely confuse the average reader.
C) The management of a company would most likely distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it starts with Net Income and ends in the current cash balance which increases reader confidence in the report.
D) The management of a company would most likely distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it does not present any relation to the other statements of the report, therefore it is least likely to confuse the reader.

44

QBP has a feature that allows you to manage and pay sales taxes

45

The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours. The February direct labor budget indicates that 5,800 direct labor-hours will be required in that month. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $82,360 per month, which includes depreciation of $16,820. All other fixed manufacturing overhead costs represent current cash flows.Required:a. Determine the cash disbursements for manufacturing overhead for February. Show your work!b. Determine the predetermined overhead rate for February. Show your work!

46

If the accounts receivable turnover for the current year has decreased when compared with the ratio for the preceding year, there has been an acceleration in the collection of receivables

47

Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Loss on Disposal of Equipment-indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:

48

Which of the following best describes the weight of a revenue ruling?

49

Rob sells stock with a cost of $3,000 to his daughter for $2,200, which is its fair market value. Later the daughter sells the stock for $3,200 to an unrelated party. Which of the following describes the tax treatment to Rob and Daughter?

50

We calculate the PE ratio as the stock price divided by earnings per share so that both stock price and earnings are expressed on a per share basis.

TRANSACTION	Account(s) debited	Account(s) credited	Transaction type
Closed Dividends account, assuming there was a net income for the period.	3200	6999	3

a.		February
	Budgeted direct labor-hours	5,800
	Variable manufacturing overhead rate	$4.60
	Variable manufacturing overhead	$26,680
	Fixed manufacturing overhead	82,360
	Total manufacturing overhead	109,040
	Less depreciation	16,820
	Cash disbursements for manufacturing overhead	$92,220

b.	Total manufacturing overhead (a)	$109,040
	Budgeted direct labor-hours (b)	5,800
	Predetermined overhead rate for the month (a) ÷ (b)	$18.80

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Business - Accounting And Taxation. Quizlevel4

Recent Packs

a.	Budget variance	$1040	F
b.	Volume variance	$3660	F

Rob	Daughter
Recognizes no loss	Recognizes gain of $1,000

Rob	Daughter
Recognizes $800 loss	Recognizes gain of $1,000

Rob	Daughter
Recognizes no loss	Recognizes gain of $200