Business - Accounting And Taxation. Pace 2 Quiz

1

To control for risks associated with the threat of inventory loss, who should have primary responsibility for work-in-process inventories?

2

Trina Productions is a price-taker

3

The two main qualities that make accounting information useful for decision making are ________ and ________

4

Use the following information in the adjusted trial balance for Stockton Company to answer the following questions. Stockton Company Adjusted Trial Balance For the Year ended December 31, 2010 Cash $ 6,030 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated Depreciation $ 1,100 Accounts Payable 1,900 Notes Payable 4,200 Bob Steely, Capital 12,940 Bob Steely, Withdrawals

5

Analytical procedures performed during phase III of the audit

6

Which of the following might be motivation for fraudulently covering up a financial weakness?

7

Answer the following statements true (T) or false (F)

8

If a company borrows money from a bank as an installment note, the interest portion of each annual payment will

9

Assuming a normal balance, which of the following is correct concerning the balance sheet columns of the work sheet?

10

Stealth, Inc. produces two types of drones, rotary and fixed wing. Stealth estimated $850,000 of manufacturing overhead, and 62,500 machine hours for the year. The allocation base for overhead costs is machine hours. The rotary model actually consumed 18,000 machine hours, and the fixed wing type consumed 44,500 machine hours. How much overhead is allocated to the rotary model? (Round intermediary calculations to the nearest cent.)

11

Spark Company's static budget is based on a planned activity level of 45,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 40,000 units and one based on 50,000. The company actually produced and sold 49,000 units. In evaluating its performance, management should compare the company's actual revenues and costs to which of the following budgets?

12

A nonpublic company auditors' report is most likely to be addressed to the company whose financial statements are being examined or to that company's:

13

On December 1, Orenthal Marketing Company received $5400 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as unearned fees. The adjusting entry for the year ended December 31 would include:

14

Which of the following attributes are not necessary to be a successful project center manager?

15

A management accountant was working on a cash budget for Oklahoma Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below: Oklahoma CompanyCash BudgetFor the Quarter Ended March 31 January February MarchSection 1: Cash Receipts Beginning cash balance$7,500 (f) (k) Add: Cash receipts (a) 187,500 255,000 Total cash available$262,500 (g) (l) Section 2: Cash Payments For inventory purchases$127,500 $112,500 $118,500 For S&A expenses (b) 67,500 69,000 For asset purchases 37,500 37,500 37,500 For interest

in Business

expenses 0 0 (m) Total disbursements$240,000 $217,500 $225,150 Section 3: Financing Activities Surplus (shortage) (c) (h) (n) Borrowing (repayments) (d) (i) (o) Ending cash balance (e) (j) (p) The company desires to maintain an ending cash balance of at least $7,500 each month. In any month in which there is cash shortage, the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance.Required:Compute the missing amounts for items (a) through (p).

What will be an ideal response?

16

What are the three types of audit opinion, and what is the meaning of each? Which type of opinion is considered the best?

17

Which of the following ratios is most useful in indicating a company's profitability?

18

Incremental costs are the additional costs incurred if a company pursues a certain course of action.

19

If underapplied or overapplied factory overhead is immaterial, it is charged to ______________________________

20

Which of the following is a characteristic of manufacturing overhead in a job order cost system?

21

The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $37,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June?

22

Under the indirect method, depreciation expense is added to net income because it decreases net income but does not affect cash flow.

23

Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit$53Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$13Direct labor$6Variable manufacturing overhead$5Fixed manufacturing overhead per year$63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$71,000 Year 1 Year 2Units in beginning inventory0 3,000Units produced during the year9,000 7,000Units sold during the year6,000 7,000Units in ending inventory3,000 3,000 The unit product cost under absorption costing in Year 1 is closest to:

24

Larry was the holder of a patent on a video game. During 2019, he sold all substantial rights in the patent for $365,000 in cash and a 3% royalty on the purchaser’s first $10,200,000 of sales each year related to the product in which the patent is incorporated. Larry had not reduced the patent to practice. He had a $86,000 basis for the patent. During 2019, he received $30,000 in royalties. What is the nature and amount of Larry’s gain?

25

In what year was SARBOX enacted?

26

When making a general journal entry, there can only be one debit and one credit

27

On May 1, Tango Co. agreed to sell the assets of its Formal Wear Division to Top Hat Inc. The following additional facts pertain to the transaction:•The Formal Wear Division qualifies as a component of the entity according to GAAP regarding discontinued operations. •The book value of Formal Wear's assets totaled $48 million on December 31, 2021. •Formal Wear's operating income was a pre-tax loss of $10 million in 2021. •Tango's income tax rate is 25%. Suppose that the Formal Wear Division's assets had not been sold by December 31, 2021, but were considered held for sale. Assume that the fair value of these assets was $40 million at December 31, 2021. In the income statement for the year ended December 31, 2021, Tango Co. would report discontinued operations of:

28

The income statement is prepared from

29

Present Value of 1Periods3%4%5%6%7%8%9%10%12%30.91510.88900.86380.83960.81630.79380.77220.75130.711840.88850.85480.82270.79210.76290.73500.70840.68300.635550.86260.82190.78350.74730.71300.68060.64990.62090.567460.83750.79030.74620.70500.66630.63020.59630.56450.506670.81310.75990.71070.66510.62270.58350.54700.51320.452380.78940.73070.67680.62740.58200.54030.50190.46650.403990.76640.70260.64460.59190.54390.50020.46040.42410.3606100.74410.67560.61390.55840.50830.46320.42240.38550.3220Future Value of

in Business

1Periods3%4%5%6%7%8%9%10%12%31.09271.12491.15761.19101.22501.25971.29501.33101.404941.12551.16991.21551.26251.31081.36051.41161.46411.573551.15931.21671.27631.33821.40261.46931.53861.61051.762361.19411.26531.34011.41851.50071.58691.67711.77161.973871.22991.31591.40711.50361.60581.71381.82801.94872.210781.26681.36861.47751.59381.71821.85091.99262.14362.476091.30481.42331.55131.68951.83851.99902.17192.35792.7731101.34391.48021.62891.79081.96722.15892.36742.59373.1058Present Value of an Annuity of 1Periods3%4%5%6%7%8%9%10%12%32.82862.77512.72322.67302.62432.57712.53132.48692.401843.71713.62993.54603.46513.38723.31213.23973.16993.037354.57974.45184.32954.21244.10023.99273.88973.79083.604865.41725.24215.07574.91734.76654.62294.48594.35534.111476.23036.00215.78645.58245.38935.20645.03304.86844.563887.01976.73276.46326.20985.97135.74665.53485.33494.967697.78617.43537.10786.80176.51526.24695.99525.79505.3282108.53028.11097.72177.36017.02366.71016.41776.14465.6502Future Value of an Annuity of 1Periods3%4%5%6%7%8%9%10%12%33.09093.12163.15253.18363.21493.24643.27813.31003.374444.18364.24654.31014.37464.43994.50614.57314.64104.779355.30915.41635.52565.63715.75075.86665.98476.10516.352866.46846.63306.80196.97537.15337.33597.52337.71568.115277.66257.89838.14208.39388.65408.92289.20049.487210.089088.89239.21429.54919.897510.259810.636611.028511.435912.2997910.159110.582811.026611.491311.978012.487613.021013.579514.77571011.463912.006112.577913.180813.816414.486615.192915.937417.5487A company needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

What will be an ideal response?

30

Which of the following is an advantage of the corporate form of business?

31

Florence Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: X1 R2 Z3Selling price per unit$325.89 $543.15 $508.00 Variable cost per unit$251.94 $420.75 $397.60 Time on the constraint (minutes) 5.10 8.50 8.00 Required:a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work!b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?

32

Briefly discuss what gross profit represents and how it affects the net earnings of a merchandiser.

33

Adjusting entries to record depreciation expense increase operating expenses and reduce net income but do not require an outflow of cash

34

Which of the following bodies oversees audits and auditors, and sanctions firms and individuals for violations of laws and regulations?

35

R&D costs are expensed in the period that they occur,

36

Which inventory cost flow method assigns the same cost to all units whether sold or left in ending inventory?

37

Which of the following is NOT a typical attribute of an audit committee?

38

The financial statements of Harbor Furniture Company include the following items

39

The Boxwood Machining Co. has the following information for last year: Tons of metal input 28,000 Labor hours 10,000 Overhead costs$125,000 Tons of output produced 20,000 The partial productivity for labor is:

40

If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated

41

Use the following to answer the question(s) below:On January 1, 2021, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2021 and 2022, 25,000 and 84,000 units, respectively, were produced. Required:Compute depreciation for 2021 and 2022 and the book value of the drill press at December 31, 2021 and December 31, 2022, assuming the double-declining-balance method is used.

42

In the introductory stage, the choices appear to be to fortify and consolidate previously established market positions or to develop a new primary demand

43

Which of the following intangible assets should not be amortized?

44

Changes in balance sheet accounts from one year to the next may not map directly into the corresponding account changes in the statement of cash flows. Which of the following items is not a cause of such mapping differences?

45

Allowance for Bad Debts may also be referred to as Allowance for Doubtful Accounts

46

The IS function with the responsibility of guiding the IT organization in establishing and meeting user information requirements is the IT steering committee.

47

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:ActivityCost DriverAmountMXYProduction setupsNumber of setups$82,000 8 12 Material handlingNumber of parts 48,000 56 24 Packaging costsNumber of units 130,000 80,000 50,000 $260,000 What is the total overhead allocated to Product M using the current system?

48

[The following information applies to the questions displayed below.] Shown below is information relating to the stockholders' equity of Brookdale Corporation at December 31, 2018: 11% cumulative preferred stock, $130 par, 100,000 shares authorized,10,000 shares issued$1,300,000 Common stock, $1.25 par, 1,000,000 shares authorized, 600,000 shares issued(of which 6,000 are held in treasury) 750,000 Additional paid-in capital: preferred stock 500,000 Additional paid-in capital: common stock 900,000 Additional paid-in capital: treasury stock transactions 6,000 Treasury stock (at cost: 6,000 common shares) (192,000)Retained earnings 1,350,000 How many shares of common stock are outstanding?

49

A soft drink bottler incurred the following factory utility cost: $9,246 for 5,200 cases bottled and $8,997 for 4,900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

50

Identify which of the following statements is false.

51

The warehouse is responsible for updating the inventory subsidiary ledger

52

A companys income before interest expense and income taxes in 2014 and 2015 is $487,500 and $427,000, respectively. Its fixed interest expense was $125,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

53

Cost-volume-profit analysis can be presented in both equation form and graphic form

54

Scanning refers to a decision-making system for the environmental forces that may impact a company's products and markets in the future. Rationale: It refers to an early warning system

55

The declaration of a cash dividend causes an increase in a corporation's liabilities at the date of declaration

Salaries expense	25,900
Salaries payable		25,900

Prepaid salaries	11,100
Salaries payable		11,100

Salaries expense	25,900
Prepaid salaries	11,100
Salaries payable		37,000

Salaries expense	7400
Salaries payable		7400

Cost, January 1, 2021	$36,000
2021 depreciation (20%)	7,200
Book value, December 31, 2021	28,800
2022 depreciation (20%)	5,760
Book value, December 31, 2022	$23,040

Find your answers, solutions and more...

We made it much easier for you to find exactly what you're looking for on Sciemce. Enjoy our search engine "Clutch."

Save a GPA. Donate your notes with us.

Business - Accounting And Taxation. Pace 2 Quiz

Recent Packs


(a)	$	255,000		(i)	$	15,000
(b)	$	75,000		(j)	$	7,500
(c)	$	22,500		(k)	$	7,500
(d)		0		(l)	$	262,500
(e)	$	22,500		(m)	$	150
(f)	$	22,500		(n)	$	37,350
(g)	$	210,000		(o)	$	(15,000	)
(h)	$	(7,500	)	(p)	$	22,350

	X1		R2		Z3
Selling price per unit	$	325.89	$	543.15	$	508.00
Variable cost per unit		251.94		420.75		397.60
Contribution margin per unit (a)	$	73.95	$	122.40	$	110.40
Amount of the constrained resource required to produce one unit (b)		5.10		8.50		8.00
Contribution margin per unit of the constrained resource (a)÷(b)	$	14.50	$	14.40	$	13.80
Ranking		1		2		3