Financial Accounting

1.Suppose a firm had an extraordinary loss of $300,000. If the firm’s tax rate i

1.Suppose a firm had an extraordinary loss of $300,000. If the firm’s tax rate is 35%, how will the loss be shown in the financial statement? •A On the income statement, below inc…

1.Suppose it takes a computer manufacturer 10 days to build and sell computers.

1.Suppose it takes a computer manufacturer 10 days to build and sell computers. Also suppose it takes the firm’s customers 30 days, on average, to pay for the computers after they…

1.Suppose that aggregate demand increases by $1 billion, what would happen to eq

1.Suppose that aggregate demand increases by $1 billion, what would happen to equilibrium RGDP? Explain. 2.When the price level is falling, we experience deflation. This occurred …

1.Suppose that the market labor supply and labor demand equations are given by Q

1.Suppose that the market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 - 5W. If a minimum wage is set at $4.00 (W = 4), then: show step by step 1, 2, 3…

1.Suppose the government increases its spending in a closed economy by $2.5 bill

1.Suppose the government increases its spending in a closed economy by $2.5 billion. If the crowding-out effect exceeds the multiplier effect, then the AD curve will only shift to…

1.Suppose the government increases its spending on warships by $25B, marginal pr

1.Suppose the government increases its spending on warships by $25B, marginal propensity to save is 0.40 and the marginal propensity to import is zero. 11.1.   What is the value o…

1.Tangible assets on the balance sheet should include: A. Equipment. B. Taxes pa

1.Tangible assets on the balance sheet should include: A. Equipment. B. Taxes payable. C. Trademarks. D. Bonds payable. E. None of the answers are correct. 2.The balance sheet rep…

1.Teruba Melons purchased a truckload of watermelons weighing 3,000 pounds for $

1.Teruba Melons purchased a truckload of watermelons weighing 3,000 pounds for $900. The company separated the melons into two grades: superior and economy. The superior grade mel…

1.The Branch Company sells inventory costing $22,500 to a customer for $30,000.

1.The Branch Company sells inventory costing $22,500 to a customer for $30,000. Because of significant uncertainties surrounding the transaction, the installment sales method is v…

1.The Branch Company sells inventory costing $22,500 to a customer for $30,000.

1.The Branch Company sells inventory costing $22,500 to a customer for $30,000. Because of significant uncertainties surrounding the transaction, the installment sales method is v…

1.The Marx Company issued $92,000 of 9% bonds on April 1 of the current year at

1.The Marx Company issued $92,000 of 9% bonds on April 1 of the current year at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated Januar…

1.The Nelson Company\'s radio division currently is purchasing transistors from

1.The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson …

1.The Ney Co. has a Dec. 31 year end. On June 30, 2016, Ney issues 20 ($ 10,000

1.The Ney Co. has a Dec. 31 year end. On June 30, 2016, Ney issues 20 ($ 10,000 at a Price of $ 100). Interest is at 15% payable semi-annually on June 30 & Dec. 31. Prepare th…

1.The Simon Machine Tools Company is considering purchasing a new set of machine

1.The Simon Machine Tools Company is considering purchasing a new set of machine tools to process special orders. The following financial information is available. - Without the p…

1.The Taylor Company uses a job order cost system to assign costs to customers.

1.The Taylor Company uses a job order cost system to assign costs to customers. The Work in Process account below is for the month of November Work in Process 63,000 Beg. Bal. Dir…

1.The XYZ Company has maintained a defined-benefit pension plan for its employee

1.The XYZ Company has maintained a defined-benefit pension plan for its employees for a number of years. At the end of the most recent year, the following information was availabl…

1.The accounting concept or principle applied when the cost of short-term market

1.The accounting concept or principle applied when the cost of short-term marketable securities is adjusted to market value is: Select one: a. objectivity. b. matching revenue and…

1.The accounting equation may be expressed as: A. Assets = Reveues – Expenses B.

1.The accounting equation may be expressed as: A. Assets = Reveues – Expenses B. Assets + Liabilities = Stockholders' Equity C. Assets – Equities = Liabilities D. Assets = Liabili…

1.The balance sheets for ABC Company showed the following information. Additiona

1.The balance sheets for ABC Company showed the following information. Additional information concerning transactions and events during 2015 are presented below. Additional data: …

1.The closing entry for revenue accounts includes a debit to Retained Earnings a

1.The closing entry for revenue accounts includes a debit to Retained Earnings and a credit to all revenue accounts. True or false. 2.The employer records amounts deducted from em…

1.The company\'s minimum rate of return is also referred to as its profit margin

1.The company's minimum rate of return is also referred to as its profit margin. 2.Only quantitative data are used in the capital investment decision-making process. 3.The payback…

1.The comparative balance sheet for the Bale company for year 1 and year 2 are p

1.The comparative balance sheet for the Bale company for year 1 and year 2 are presented below. The dividend declared and paid in year 2 is $13,500. Prepare a statement of cash fl…

1.The concept of adequate disclosure: A. Does not apply to information which is

1.The concept of adequate disclosure: A. Does not apply to information which is immaterial. B. Grants users of the financial statements access to a company's accounting records. C…

1.The controller of JoyCo has requested a quick estimate of the manufacturing su

1.The controller of JoyCo has requested a quick estimate of the manufacturing supplies needed for the month of July when production is expected to be 470,000 units. Below are actu…

1.The cost of merchandise purchased is not an expense at the time of purchase be

1.The cost of merchandise purchased is not an expense at the time of purchase because of the inventory purchase principle. True False 2. Suppose ShoeFanatic.com used the average-c…

1.The costs assigned to units in inventory are typically lower under absorption

1.The costs assigned to units in inventory are typically lower under absorption costing than under variable costing. TRUE OR FALSE 2. Under variable costing, product cost contains…

1.The distinction between operating and non-operating income relates to: continu

1.The distinction between operating and non-operating income relates to:       continuity of income.       principal activities of the reporting entity.       consistency of incom…

1.The financial statements are free from material misstatement, and no disclosur

1.The financial statements are free from material misstatement, and no disclosure is required in the notes to the financial statements. 2.The financial statements do not conform w…

1.The flatter is the money demand curve, the larger the impact of a given change

1.The flatter is the money demand curve, the larger the impact of a given change in the money supply on real GDP (hint: draw yourself a graph showing a flat and a steep MD curve, …

1.The following 20x5 information relates to Taylor, Inc.: 8 points each. Net Inc

1.The following 20x5 information relates to Taylor, Inc.: 8 points each. Net Income $365,000 Depreciation Expense 96,000 Amortization of Intangible Assets 11,000 Beginning Account…

1.The following data is available for Jones Corporation at December 31, 2012: Co

1.The following data is available for Jones Corporation at December 31, 2012: Common stock, par $10 (authorized 40,000 shares) $300,000 Treasury Stock (at cost $15 per share) 1500…

1.The following data pertain to an investment that is being considered by the ma

1.The following data pertain to an investment that is being considered by the management of Hanson Company: The net present value of the proposed investment is 2.Hamell Company ha…

1.The following data relate to a $200,000,000, 5% bond issued for a selected sem

1.The following data relate to a $200,000,000, 5% bond issued for a selected semiannual interest period: Bond carrying amount at beginning of period $216,221,792 Interest paid dur…

1.The following financial statement information is available for Jones Corporati

1.The following financial statement information is available for Jones Corporation: 2012 Net sales $697,000 Cost of goods sold 377,000 Net Income 80,000 Tax expense 29,000 Interes…

1.The income statement is linked to the balance sheet through: A.The cash accoun

1.The income statement is linked to the balance sheet through: A.The cash account B.The stock account C.The costs of goods sold D.The retained earnings account 2.The sale of a bir…

1.The inventory systems that uses the merchandise inventory account as an active

1.The inventory systems that uses the merchandise inventory account as an active account is called? a. periodic system. b. perpetual system c LIFO system d. FIFO system 2. Cost of…

1.The main objective of contractionary monetary policy is to A. decrease aggrega

1.The main objective of contractionary monetary policy is to A.  decrease aggregate demand B.  close a recessionary gap C.  increase investment D.  raise the level of potential ou…

1.The main objective of contractionary monetary policy is to A. decrease aggrega

1.The main objective of contractionary monetary policy is to A.  decrease aggregate demand B.  close a recessionary gap C.  increase investment D.  raise the level of potential ou…

1.The main objective of contractionary monetary policy is to A. decrease aggrega

1.The main objective of contractionary monetary policy is to A.  decrease aggregate demand B.  close a recessionary gap C.  increase investment D.  raise the level of potential ou…

1.The manager of an operating department just received a cost report and has mad

1.The manager of an operating department just received a cost report and has made the following comment with respect to the costs allocated from one of the service departments: “T…

1.The marketing department of Jessi Corporation has submitted the following sale

1.The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): Units to be produced 11,000-1st…

1.The purpose of a flexible budget is to: Answer A. remove items from performanc

1.The purpose of a flexible budget is to: Answer A. remove items from performance reports that are not controllable by managers. B. permit managers to reduce the number of unfavor…

1.The purpose of the statement of cash flows is to provide information on: Choos

1.The purpose of the statement of cash flows is to provide information on: Choose one answer. a. Profits. b. Cash inflows and outflows. c. Losses. d. Net worth. e. Capital adequac…

1.The quick ratio measures a company\'s ability to pay it\'s total liabilities.

1.The quick ratio measures a company's ability to pay it's total liabilities. ? a.True, b.False 2.The direct write-off method uses no allowance for the uncollectible account. Inst…

1.The role of the public in public administration continues to be deliberated an

1.The role of the public in public administration continues to be deliberated and defined. Many local governments solicit public participation in their budget preparations and a f…

1.The single-step income statement emphasizes a. the gross profit figure. b. tot

1.The single-step income statement emphasizes a. the gross profit figure. b. total revenues and total expenses. c. extraordinary items and accounting changes more than these are e…

1.The statement of cash flows relies on a fundamental principle of double-entry

1.The statement of cash flows relies on a fundamental principle of double-entry bookkeeping; namely, the change in the cash balance must equal the change in total liabilities and …

1.The variable expense per unit is $12 and the selling price per unit is $40. Th

1.The variable   expense per unit is $12 and the selling price per unit is $40. Then the contribution   margin ratio is 70%. TRUE              FALSE    2.If   a company with both …

1.There are two alternatives to reporting cash flows from operating activities i

1.There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) the direct method and (2) the indirect method. a. True b. False …

1.There is only one method of evaluating capital budgeting decisions. True or fa

1.There is only one method of evaluating capital budgeting decisions. True or false? 2.Capital budgeting decisions that relate to investments in technology are not as risky as oth…