multiple choice.

choose the one alternative that best completes the statement or

answers the question.
1) lance corporation reports beginning accounts receivable of $70,200 and ending
accounts receivable of $67,900. if sales revenue on account is $950,200, how much
cash must have been collected from customers during the period? 1) _______
a) $952,500 b) $880,000 c) $882,300 d) $947,900

2) cash received from customers equals sales revenue: 2) _______

a) minus cost of goods sold
b) minus the decrease in accounts receivable
c) plus the decrease in accounts receivable
d) plus cost of goods sold

3) oliver enterprises uses the direct method in preparing its statement of cash
flows. oliver enterprises sold machinery with a book value of $36,700 at a loss
of $7,200. the amount to be reported on the statement of cash flows under
"proceeds from sale of plant assets" is: 3) _______
a) $30,000 b) $29,500 c) $43,900 d) $36,700

4) a loss from sale of equipment would appear on the statement of cash flows
using the indirect approach as a(n): 4) _______
a) addition under financing activities
b) addition to net income in the operating activities section
c) addition under investing activities
d) deduction from net income in the operating activities section

5) ace industries prepares its statement of cash flows using the direct method.
ace sold equipment with a book value of $6,400 at a loss of $800. the amount to be
reported on the statement of cash flows under operating activities is: 5)
_______
a) $0 b) $5,600 c) $(800) d) $800

6) purchases of inventory equals: 6) _______

a) beginning inventory minus ending inventory minus cost of goods sold
b) cost of goods sold plus ending inventory minus beginning inventory
c) cost of goods sold plus beginning inventory
d) cost of goods sold plus beginning inventory plus ending inventory

7) freedom industries prepares its statement of cash flows using the direct
method. freedom sold equipment with a book value of $7,000 at a gain of $2,500.
the amount to be reported on the statement of cash flows under operating
activities is: 7) _______
a) $9,500 b) $0 c) $2,500 d) $(2,500)

8) under the indirect method, a gain resulting from the sale of equipment would:
8) _______
a) be added to net income in the operating activities section
b) appear in the financing activities section
c) be subtracted from net income in the operating activities section
d) appear in the schedule of noncash investing and financing activities
9) cash disbursement for the payment of dividends would appear in the: 9)
_______
a) investing activities b) operating activities
c) financing activities d) equity activities

10) franklin company has beginning inventory of $100,000 and ending inventory of
$80,000. cost of goods sold is $307,500. beginning accounts payable is $52,500 and
ending accounts payable is $40,000. how much are cash payments to suppliers for
inventory? 10) ______
a) $289,500 b) $307,500 c) $300,000 d) $315,000

table 1 dec. 31, 20x6 dec. 31, 20x7 accounts receivable

$100,000 $110,000 cost of goods sold 560,000 sales
revenue 830,000 accounts payable* 67,000 75,000 inventory
105,000 86,000 salary payable 10,000 13,000 salary
expense 45,000 49,000*relates solely to the acquisition of inventory
11) refer to table 1. cash paid for inventory in 20x4 amounted to: 11) ______
a) $540,000 b) $608,000 c) $533,000 d) $466,000

12) which of the following is not considered an operating activity? 12) ______
a) dividends received on investments in stock
b) dividends paid to stockholders
c) interest earned on short-term investments
d) sale of inventory

13) the direct method statement of cash flows reported $67,030 in payments for
insurance during the year. the prepaid insurance account had beginning and ending
balances of $13,540 and $11,780, respectively, for the same period. the amount of
insurance expense reported on the income statement for the same year was: 13)
______
a) $65,270
b) $67,030
c) $68,790
d) cannot be determined from the information given

14) liberty industries prepares its statement of cash flows using the direct
method. liberty sold equipment with a book value of $9,000 at a gain of $2,500.
the amount to be reported on the statement of cash flows under investing
activities is: 14) ______
a) $11,500 b) $2,500 c) $6,500 d) $9,000

15) the financial statement that reports an entity's cash receipts and cash
payments during the period is the statement of: 15) ______
a) income b) balance
c) retained earnings d) cash flows

16) cougar company reports the following information for 20x7. credit sales
$599,000collections from customers 480,000interest received on investments
20,000dividends paid to common stockholders 11,000cost of goods sold
335,000payments to inventory suppliers 339,500depreciation expense 25,000
operating expenses 70,000payments for operating expenses 72,500interest and
taxes paid 12,300what is the net cash inflow from operating activities? 16)
______
a) $194,700 b) $64,700 c) $78,200 d) $75,700

17) conrad corporation sold a piece of equipment at a loss of $3,600. the

equipment was purchased several years ago at a cost of $70,500 and had been
depreciated a total of $52,900. using the indirect method, what amount is reported
under the operating activities on a statement of cash flows? 17) ______
a) $3,600 b) $(3,600)
c) $49,300 d) none of the above

18) cost of goods sold for carlton company during 20x7 was $480,000. beginning
inventory was $165,000 and ending inventory was $195,000. beginning accounts
payable was $61,500 and ending accounts payable was $72,000. how much cash was
paid to suppliers during 20x7? 18) ______
a) $510,000 b) $480,000 c) $520,500 d) $499,500

19) which statement is false? 19) ______

a) a statement of cash flows is dated for a period of time as opposed to a point
in time.
b) one purpose of a statement of cash flows is to predict future cash flows.
c) a statement of cash flows is a basic financial statement required by gaap.
d) a statement of cash flows includes operating, financing, and equity sections.

20) all of the following are considered investing activities except: 20) ______

a) purchase of treasury stock b) sale of land

c) purchase of equipment d) sale of equipment

21) the percentage change in any individual item shown on comparative financial
statements is calculated by dividing the dollar amount of the change from the
base-period to the current period by: 21) ______
a) the sum of the current period amount and the base-period amount
b) the average of the amounts shown for the base and the current periods
c) the base-period amount
d) the amount shown for the current period

table 2 given the following data: net sales $150,000 cost of goods sold
60,000 gross profit 90,000
22) refer to table 2. if net sales increased 20%, and cost of goods sold
increased 20%, gross profit would: 22) ______
a) increase 10% b) decrease 20%
c) increase 20% d) decrease 15%

table 4broadmore corporation reported the following information for 20x6 and 20x7:
20x7 data net sales revenue $950,000 cost of goods sold 630,000
total assets as of december 31 525,000 current liabilities 25,000
stockholders' equity on december 31 395,000 selling and general expenses
230,000 interest expense 20,000 net income 70,000 current assets
60,000 20x6 data current liabilities $ 20,000 total assets on
december 31 500,000 stockholders' equity on december 31 275,000 current
assets 55,000
23) refer to table 4. if inventory and prepaid expenses account for $20,000 of
the 20x7 current assets, the acid-test ratio for 20x7 is: 23) ______
a) 2.4 b) 1.6 c) 0.42 d) 0.63

24) creditors are most concerned with assessing: 24) ______

a) short-term liquidity
b) dividends and future stock prices
c) long-term solvency
d) both a and c

25) if cost of goods sold for the year was overstated, but all other financial
statements items were properly reported, the calculated inventory turnover ratio
would: 25) ______
a) indicate the company was less profitable than it actually was
b) indicate that inventory was being turned over more times than it actually was
c) indicate the chance of running out of inventory was lower than it actually was
d) be unaffected by this error

26) assuming the inventory balance at the end of 20x6 is $20,000, and it has
increased by 15% since the end of 20x5, the balance at the end of 20x5 (rounded to
the nearest whole dollar) was: 26) ______
a) $17,391 b) $16,364 c) $17,000 d) $18,000

27) when calculating trend percentages, all percentages shown are relative to:
27) ______
a) the base year
b) an average index calculated for all the years shown
c) the immediately preceding year
d) the current year

table 4broadmore corporation reported the following information for 20x6 and 20x7:
20x7 data net sales revenue $950,000 cost of goods sold 630,000
total assets as of december 31 525,000 current liabilities 25,000
stockholders' equity on december 31 395,000 selling and general expenses
230,000 interest expense 20,000 net income 70,000 current assets
60,000 20x6 data current liabilities $ 20,000 total assets on
december 31 500,000 stockholders' equity on december 31 275,000 current
assets 55,000
28) refer to table 4. the current ratio for 20x7 is: 28) ______
a) 0.36 b) 2.75 c) 0.42 d) 2.40

29) if all else is held equal, an increase in the current ratio of a company is
generally considered to be an indication that: 29) ______
a) the company will be better able to meet short-term debt obligations
b) current liabilities have decreased
c) the company will have increased difficulty meeting short-term debt obligations
d) current assets have increased

30) economic value added may be computed as: 30) ______

a) net income/capital charge
b) (net income + interest expense) - capital charge
c) capital charge x (net income + interest expense)
d) capital charge/net income

31) horizontal analysis involves the study of: 31) ______

a) the changes in individual financial statement amounts as a percentage of some
related total
b) percentage changes in various financial statement amounts from year to year
c) the change in key financial statement ratios over a certain time frame or
horizon
d) none of the above

32) assume a company has a current ratio of 1.5 and working capital equal to
$25,000. total current liabilities are equal to: 32) ______
a) $50,000 b) $37,500 c) $75,000 d) $45,000

33) all the following ratios are measures of a company's ability to sell
inventory and collect receivables except: 33) ______
a) inventory turnover b) accounts receivable turnover
c) days' sales in receivables d) rate of return on net sales

table 3following are selected data from the 20x6 income statement of cox
corporation and baldwin corporation. cox corp. baldwin corp. net
sales revenue $100,000 $150,000 cost of goods sold 50,000
100,000 selling and general expenses 30,000 40,000 income tax
expense 20,000 10,000
34) refer to table 3. income tax expense as a percentage of net sales revenue
for cox corporation and baldwin corporation is, respectively: 34) ______
a) 20% and 7% b) 30% and 27%
c) 7% and 20% d) none of the above

35) interest expense for the durham company for 20x6 was $40,000. net income for
20x6 was $60,000 and income tax expense was $35,000. what was the times-interest-
earned ratio? 35) ______
a) 3.17 b) 3.38 c) 2.00 d) 4.17

36) a company with a working capital of $500,000 and a current ratio of 2.0 pays
a $100,000 short-term liability. the amount of working capital immediately after
payment is: 36) ______
a) $600,000
b) $400,000
c) $500,000
d) cannot be determined with the given information

37) finished goods inventory is reported on the: 37) ______

a) balance sheet as a long-term asset
b) income statement as a period cost
c) balance sheet as a current asset
d) income statement as revenue
38) which statement is true? 38) ______
a) financial accounting uses the cash basis to record transactions.
b) management accounting uses the cash basis to record transactions.
c) management accounting and financial accounting both use the accrual basis of
accounting to record transactions.
d) management accounting uses the cash basis and financial accounting uses the
accrual basis to record transactions.

39) selected data for the young company for 20x5 is presented below:direct labor
incurred $30,000indirect labor incurred 21,000factory depreciation 5,000
factory utilities 7,000indirect materials used 2,000direct materials used 12,000
property taxes on factory building 3,000sales commissions 8,000what is the
manufacturing overhead incurred during 20x5? 39) ______
a) $46,000 b) $47,000 c) $38,000 d) $50,000

40) work in process inventory on december 31, 20x6, is $44,000. work in process
inventory increased 60% during 20x6. cost of goods manufactured for 20x6 amounts
to $275,000. what are the total manufacturing costs incurred in 20x6? 40) ______

a) $302,000 b) $233,750 c) $291,500 d) $275,750

table 1wright company reports production costs for 20x6 as follows: direct
materials used $375,000 direct labor incurred 250,000 manufacturing
overhead incurred 400,000 operating expenses 145,000
41) refer to table 1. wright company's period costs for 20x6 amount to: 41)
______
a) $375,000 b) $145,000 c) $250,000 d) $575,000

42) collectively, a business's activities of research and development, product

design, manufacturing, marketing, distribution, and customer service are referred
to as: 42) ______
a) full costs b) the value chain
c) downstream activities d) manufacturing costs

table 1wright company reports production costs for 20x6 as follows: direct
materials used $375,000 direct labor incurred 250,000 manufacturing
overhead incurred 400,000 operating expenses 145,000
43) refer to table 1. wright company's inventoriable product costs for 20x6
amount to: 43) ______
a) $975,000 b) $925,000 c) $605,000 d) $1,025,000

44) all of the following would be reported on the balance sheet as a current
asset except: 44) ______
a) manufacturing overhead b) work in process inventory
c) finished goods inventory d) materials inventory

45) direct materials: 45) ______

a) must not become part of the finished product
b) are used to determine total inventoriable product costs
c) are used to determine total manufacturing overhead
d) cannot be separately and conveniently traced through the manufacturing process
to finished goods inventory

46) rent expense incurred on a factory building would be treated as a(n): 46)
______
a) direct cost b) product cost
c) period cost d) both a and c are correct

47) cost of goods manufactured is equal to: 47) ______

a) total manufacturing costs plus beginning work in process inventory less ending
work in process inventory
b) total manufacturing costs plus ending materials inventory less beginning
materials inventory
c) total manufacturing costs plus ending work in process inventory less beginning
work in process inventory
d) cost of goods sold plus beginning work in process inventory less ending work in
process inventory

48) inventory accounts for a merchandiser include: 48) ______

a) work in process inventory
b) manufacturing overhead inventory
c) merchandise inventory
d) all of the above

49) the hemingway company uses a job costing system. in april, material
requisitions of $44,000 were issued (direct materials, $40,000) and materials
purchases totaled $56,600. the ending balance in materials inventory was $18,400.
the beginning balance was: 49) ______
a) $25,600 b) $5,800
c) $31,000 d) none of the above

table 10cruise company uses a job costing system and had the following data
available for 20x5. beginning materials inventory $ 36,000 beginning work in
process inventory 64,000 beginning finished goods inventory 54,000
materials purchased on account 148,000 direct materials
requisitioned 85,000 direct labor cost incurred 135,000 actual
manufacturing overhead incurred 162,000 cost of goods completed 295,000
cost of goods sold 260,000 predetermined manufacturing overhead rate
125% (as a percent of direct labor)
50) refer to table 10. the journal entry to record the sale of all jobs for the
entire year would include a: 50) ______
a) credit to finished goods inventory for $260,000
b) debit to cost of goods sold for $295,000
c) debit to finished goods inventory for $295,000
d) credit to finished goods inventory for $295,000

51) direct materials flow directly into: 51) ______

a) work in process inventory b) cost of goods sold
c) manufacturing overhead d) finished goods inventory

52) lakeside company's schedule of cost of goods manufactured showed the

following amounts for april:cost of goods manufactured $69,300direct materials
used 27,000direct labor ($15 per hour) 30,000work in process inventory, april 1
9,000manufacturing overhead is allocated at the rate of $4.00 per direct
labor hour. the work in process inventory on april 30 is: 52) ______
a) $2,700 b) $3,300 c) $4,700 d) $11,700

table 6mcduffy furniture company constructs custom furniture. job cost records
during the second and third quarters of 20x6 are shown below. job. no. date
started date finished total cost of manufacturing costs
job on july 1 added in july 110 june 1 july 15 $32,840
$ 43,600 111 june 3 august 25 18,100 177,200 112 july
2 july 30 - 145,000 113 july 6 july 31 - 82,800
114 july 15 august 19 - 126,400
53) refer to table 6. the entry to record the sale of job 111 on august 25, at a
sales price of $305,420, would be: 53) ______
a) accounts receivable 305,420 sales revenue 305,420cost of goods
sold 195,300 work in process inventory 195,300
b) accounts receivable 305,420 sales revenue 305,420cost of goods
sold 195,300 finished goods inventory 195,300
c) accounts receivable 305,420 sales revenue 305,420finished goods
inventory 195,300 cost of goods sold 195,300
d) accounts receivable 305,420 sales revenue 305,420cost of goods
sold 177,200 finished goods inventory 177,200

54) door company estimated manufacturing overhead costs for 20x6 at $378,000. the
predetermined manufacturing overhead rate was based on 105,000 estimated direct
labor hours. actual direct labor hours for 20x6 totaled 110,000. the manufacturing
overhead account showed debit entries totaling $394,000. for the year, overhead
was: 54) ______
a) $2,000 overallocated b) $16,000 underallocated
c) $2,000 underallocated d) $16,000 overallocated

table 10cruise company uses a job costing system and had the following data
available for 20x5. beginning materials inventory $ 36,000 beginning work in
process inventory 64,000 beginning finished goods inventory 54,000
materials purchased on account 148,000 direct materials
requisitioned 85,000 direct labor cost incurred 135,000 actual
manufacturing overhead incurred 162,000 cost of goods completed 295,000
cost of goods sold 260,000 predetermined manufacturing overhead rate
125% (as a percent of direct labor)
55) refer to table 10. the ending finished goods inventory balance is: 55)
______
a) $54,400 b) $89,000 c) $35,000 d) $19,000

56) the predetermined manufacturing overhead rate used to allocate manufacturing

overhead is calculated by: 56) ______
a) dividing the total estimated manufacturing overhead costs by the total actual
quantity of the allocation base
b) multiplying the total estimated manufacturing overhead costs by the total
estimated quantity of allocation base
c) dividing the total estimated manufacturing overhead costs by the total
estimated quantity of allocation base
d) dividing the total estimated quantity of allocation base by the total estimated
manufacturing overhead costs
57) manufacturing overhead is overallocated $1,000 at the end of the current
period. the journal entry to dispose of the overallocated overhead balance
involves a debit to: 57) ______
a) cost of goods sold and a credit to finished goods inventory for $1,000
b) cost of goods sold and a credit to manufacturing overhead for $1,000
c) manufacturing overhead and a credit to work in process inventory for $1,000
d) manufacturing overhead and a credit to cost of goods sold for $1,000

58) the entry to record the purchase of materials on account using a job costing
system would include a: 58) ______
a) credit to work in process inventory
b) debit to materials inventory
c) debit to accounts payable
d) debit to work in process inventory

table 3the blue tide company manufactures light bulbs in a single process. the
following information is available:work in process inventory, jan. 1 - 0 - units
units started in production 14,000 unitsunits completed and transferred out 9,000
unitswork in process inventory, dec. 31 5,000 unitsproduction costs: direct
materials $38,500 direct labor 13,975 manufacturing overhead 8,600
the units still in process are 90% complete with respect to direct materials and
40% complete with respect to conversion costs.
59) refer to table 3. the equivalent units for direct materials are: 59) ______

a) 13,500 units b) 14,000 units c) 9,000 units d) 5,000 units

table 7forsyth company produces calendars in a one-process department. materials

are introduced at the beginning of the process. conversion is applied uniformly
throughout the process. the weighted-average method of costing is used. data for
the current period is as follows: beginning work in process inventory (40%
complete) 22,500 units units started in current period 130,000 units
units completed in current period 124,000 units ending work in process
inventory ( 60% complete) 28,500 units costs contained in beginning work
in process inventory direct materials $51,900 conversion
$20,174 costs added during current period direct materials
$430,000 conversion $310,000
60) refer to table 7. the equivalent units for direct materials amount to: 60)
______
a) 152,500 b) 124,000 c) 141,100 d) 130,000

table 4the usa company manufactures flags in a single process. the following
information is available: work in process inventory, jan. 1 - 0 - units
units started in production 18,000 units units completed and
transferred out 12,000 units work in process inventory, dec. 31 6,000 units
production costs: direct materials $213,885 direct labor
577,500 manufacturing overhead 391,875the units still in process
are 45% complete with respect to direct materials and 35% complete with respect to
conversion costs.
61) refer to table 4. the total cost of units in ending work in process inventory
is: 61) ______
a) $352,500 b) $183,660 c) $157,125 d) $427,500
table 6the martin rubber company produces tires. the following information is
available for martin:beginning work in process inventory:2,000 tires, 100%
complete for direct materials, 60% complete for conversion costs, cost of direct
materials added = $12,000, cost of direct labor and manufacturing overhead
allocated = $10,000current period activity: 12,600 tires completed, cost of direct
materials added =$300,950, cost of direct labor and manufacturing overhead
allocated = $232,980ending work in process inventory: 4,500 units, 100%complete
for direct materials, 40% complete for conversion costs
62) refer to table 6. the cost for conversion per equivalent unit computed under
weighted-average would be: 62) ______
a) $17.65 b) $14.93 c) $19.33 d) $16.87

63) ferrell glass company uses a process costing system. the company reported a
beginning inventory of 18,000 units that were 40% complete with respect to direct
materials. during the month, 90,000 units were started, 96,000 units were
finished, and ending inventory amounted to 12,000 units that were 20% complete
with respect to direct materials. under the weighted-average method, total direct
materials cost should be spread over: 63) ______
a) 91,200 equivalent units b) 98,400 equivalent units
c) 90,000 equivalent units d) 87,600 equivalent units

table 1the made rite shoe corporation uses a process costing system. in the
cutting department, 4,000 units were started and by the end of the period, all but
400 units had been completed. the 400 units were 80% complete regarding materials
and 40%complete regarding conversion. costs added during the current period
include $66,300 for materials and $70,004 for conversion.
64) refer to table 1. the cost per equivalent unit for conversion amounts to:
64) ______
a) $18.92 b) $18.62 c) $17.50 d) $17.95

65) assume an ending work in process of inventory of 100 units, 80% complete
regarding materials and 30% complete regarding conversion. for purposes of
calculating costs per equivalent unit for materials and conversion: 65) ______
a) the denominator would include 80 units for materials and 30 units for
conversion
b) the numerator would include 80 units for materials and 30 units for conversion
c) the denominator would include 20 units for materials and 70 units for
conversion
d) the denominator would include 100 units for materials and 100 units for
conversion

66) in a process costing system, cost of work in process-department 1 is: 66)

______
a) transferred to cost of goods sold
b) transferred to work in process-department 2
c) transferred to finished goods inventory
d) transferred to manufacturing overhead

67) all of the following might appear on the direct method statement of cash
flows except: 67) ______
a) payment of dividends b) interest received on a loan
c) stock dividends d) collections from customers
68) franklin company reported cash collections on account of $90,700 and an
increase of $13,500 in accounts receivable for the same period. sales on account
for the period were: 68) ______
a) $77,200 b) $90,700 c) $104,200 d) $97,450

69) cash collections from customers equals sales on account less the: 69)
______
a) decrease in accounts receivable b) decrease in accounts payable
c) increase in accounts payable d) increase in accounts receivable

70) cash disbursed to acquire equipment would appear in the: 70) ______
a) operating activities section
b) financing activities section
c) operating activities section or the investing activities section
d) investing activities section

71) cash payments to suppliers equals purchases plus the: 71) ______
a) increase in merchandise inventory
b) increase in accounts payable
c) decrease in accounts payable
d) decrease in merchandise inventory

72) the statement of cash flows helps inform the reader about all of the
following activities except: 72) ______
a) stock splits and stock dividends
b) differences between net income and cash flows from operations
c) the business's ability to generate positive cash flows in future periods
d) the business's ability to meet its obligations

73) of the items listed below, the one that would be most helpful in the
comparison of different-sized companies is: 73) ______
a) performing horizontal analysis
b) preparing common-size financial statements
c) comparing working capital balances
d) looking at the amount of income earned by each company

74) comparing operating expenses in 20x8 with operating expenses in 20x7 is an

example of: 74) ______
a) economic value added analysis b) horizontal analysis
c) vertical analysis d) ratio analysis

table 3following are selected data from the 20x6 income statement of cox
corporation and baldwin corporation. cox corp. baldwin corp. net
sales revenue $100,000 $150,000 cost of goods sold 50,000
100,000 selling and general expenses 30,000 40,000 income tax
expense 20,000 10,000
75) refer to table 3. which company had the better relationship between cost of
goods sold to net sales revenue? 75) ______
a) baldwin corporation
b) cox corporation
c) both companies had the same relationship between cost of goods sold to net
sales revenue.
d) impossible to determine with the given data

table 4broadmore corporation reported the following information for 20x6 and 20x7:
20x7 data net sales revenue $950,000 cost of goods sold 630,000
total assets as of december 31 525,000 current liabilities 25,000
stockholders' equity on december 31 395,000 selling and general expenses
230,000 interest expense 20,000 net income 70,000 current assets
60,000 20x6 data current liabilities $ 20,000 total assets on
december 31 500,000 stockholders' equity on december 31 275,000 current
assets 55,000
76) refer to table 4. working capital for 20x6 is: 76) ______
a) $35,000 b) $480,000 c) $75,000 d) $445,000

77) assume a company has a current ratio of 1.5 and working capital equal to
$40,000. total current assets are equal to: 77) ______
a) $60,000 b) $20,000 c) $80,000 d) $120,000

78) an example of a period cost is: 78) ______

a) depreciation on factory equipment
b) advertising expense
c) property taxes on plant
d) indirect materials

79) a product cost is: 79) ______

a) expensed in the period in which it is incurred
b) expensed in the period the product is sold
c) shown on the income statement with the operating expenses
d) shown with current liabilities on the balance sheet

80) the primary goal of financial accounting is to provide information to: 80)
______
a) creditors b) investors
c) company managers d) both a and b

table 2fitness company reports the following data for 20x6, its first year of
operations: cost of goods manufactured $440,000 work in process inventory,
dec. 31, 20x6 130,000 direct materials used 115,000 manufacturing
overhead incurred 160,000 finished goods inventory, dec. 31, 20x6 75,000
81) refer to table 2. what is cost of goods sold for fitness company for 20x6?
81) ______
a) $365,000 b) $480,000 c) $240,000 d) $340,000

table 8 daniel company's manufacturing overhead account showed a $4,500

overallocated balance at the end of 20x5. actual overhead incurred was $95,000.
other accounts showed the following balances: materials inventory $ 10,000
work in process inventory 30,000 finished goods inventory 45,000
cost of goods sold 275,000
82) refer to table 8. the entry to close the manufacturing overhead account
would include a: 82) ______
a) debit to cost of goods sold for $4,500
b) debit to work in process for $4,500
c) debit to manufacturing overhead for $4,500
d) credit to work in process for $4,500

table 10cruise company uses a job costing system and had the following data
available for 20x5. beginning materials inventory $ 36,000 beginning work in
process inventory 64,000 beginning finished goods inventory 54,000
materials purchased on account 148,000 direct materials
requisitioned 85,000 direct labor cost incurred 135,000 actual
manufacturing overhead incurred 162,000 cost of goods completed 295,000
cost of goods sold 260,000 predetermined manufacturing overhead rate
125% (as a percent of direct labor)
83) refer to table 10. the ending work in process inventory balance is: 83)
______
a) $93,750 b) $157,750 c) $87,000 d) $151,000

84) in job costing, indirect materials used in production are credited to: 84)
______
a) manufacturing overhead b) work in process inventory
c) finished goods inventory d) materials inventory

85) the entry to record actual manufacturing overhead incurred in a processing

department would include a: 85) ______
a) debit to manufacturing overhead
b) credit to work in process inventory
c) credit to manufacturing overhead
d) debit to work in process inventory

table 9bcc corporation manufactures snowboards using a two-department process.

direct materials are added in both the assembly and shaping departments.
conversion costs are applied uniformly throughout the process. the weighted-
average method of process costing is used. data for the shaping department for the
month of march follow: beginning work in process inventory: number of
units 7,000 transferred-in costs $98,000 direct materials
(100% complete) $24,500 conversion costs (65% complete) $22,750
units transferred in from assembly department during march: number
of units 45,000 transferred-in costs $630,000 units completed
during march 42,000 costs added during march: direct materials
$155,040 conversion costs $230,710 ending work in process inventory
number of units 10,000 (50% complete as to direct materials
and 40% complete as to conversion costs)
86) refer to table 9. the total cost of units transferred to finished goods
inventory would be: 86) ______
a) $375,900 b) $1,032,750 c) $979,860 d) $803,250

87) equivalent unit calculations are prepared for: 87) ______

a) both direct labor and manufacturing overhead costs
b) neither direct materials nor conversion costs
c) both direct materials and conversion costs
d) both direct materials and direct labor costs
88) carthage company reported salary expense of $65,000 on its 20x8 income
statement. it reported cash payments to employees of $57,500 on the 20x8 statement
of cash flows. the ending 20x8 balance in the salary payable account was $12,000.
what was the beginning 20x8 balance in the salary payable account? 88) ______
a) $5,500 b) $7,500 c) $19,500 d) $4,500

89) activities that create revenues and expenses are referred to as: 89) ______

a) financing activities
b) noncash investing and financing activities
c) operating activities
d) equity activities

90) given the following data for total sales:20x5 $100,00020x6 110,000
20x7 115,00020x8 108,000a table showing trend percentages for 20x5-20x8,
respectively, using 20x5 as the base year would show a(n): 90) ______
a) 15% increase in 20x6 b) 10% decrease in 20x6
c) 8% increase in 20x8 d) 6% decrease in 20x8

91) the percentage of change in total assets between two balance sheet dates is
an example of: 91) ______
a) profitability analysis b) horizontal analysis
c) vertical analysis d) capital analysis

92) global competition in today's business environment: 92) ______

a) places more pressure than ever on managers to compete for new markets
b) increases the need for ethical behavior
c) has reduced the pressure on managers to compete
d) both a and b are correct

table 3buncombe company presents the following cost data for 20x7: estimated
manufacturing overhead costs $240,000 estimated direct labor cost $300,000
estimated direct labor hours 30,000 actual direct labor cost
$315,000 actual direct labor hours 33,000 allocation base: direct
labor cost other expenses: factory depreciation on equipment $65,300
factory rent 51,000 factory utilities 28,900
factory property taxes 26,000 indirect labor 23,800
indirect materials 32,000 sales commissions 52,500
93) refer to table 3. manufacturing overhead allocated for 20x7 is: 93) ______

a) $252,000 b) $220,500 c) $210,000 d) $450,450

94) assume that 12,000 units were on hand at the beginning of the period, 50,000
units were started during the period, 56,000 units were completed during the
period, and 6,000 units were on hand at the end of the period. direct materials
are added at the beginning of the period. under the weighted-average method, the
equivalent units for direct materials would be: 94) ______
a) 56,000 b) 62,000 c) 38,000 d) 50,000

95) martin company reported interest revenue of $29,450 and its interest
receivable account decreased $2,600 during the same period. interest received for
the period amounted to: 95) ______
a) $32,050
b) $26,850
c) $29,450
d) cannot be determined from the information given

96) an acceleration in the collection of receivables will tend to cause the

accounts receivable turnover to: 96) ______
a) decrease
b) increase
c) increase or decrease
d) cannot be determined with the given information

97) cost of goods manufactured during 20x6 is $240, work in process inventory on
december 31, 20x6, is $50. work in process inventory during 20x6 decreased 60%.
total manufacturing costs incurred during 20x6 amount to: 97) ______
a) $290 b) $190 c) $165 d) $315

98) opague corporation uses a job costing system. the work in process inventory
balance on december 31, 20x6, consists of job no. 120, which has a balance of
$19,000. job no. 120 has been charged with manufacturing overhead of $5,100.
opaque allocates manufacturing overhead at a predetermined rate of 85% of direct
labor cost. the amount of direct materials charged to job no. 120 was: 98)
______
a) $7,565 b) $7,000 c) $5,900 d) $7,900

99) in a process costing system, direct labor and manufacturing overhead are
normally: 99) ______
a) incurred evenly throughout the process
b) incurred at the end of the process
c) not recorded
d) incurred in full at the beginning of the process

100) the statement of cash flows is divided into three major categories
including: 100) ______
a) capital, financial, and operating activities
b) financing, capital, and investing activities
c) investing, operating, and capital activities
d) operating, investing, and financing activities

multiple choice. choose the one alternative that best completes the statement or
answers the question.
1) a

2) c
3) b

4) b

5) a

6) b

7) b

8) c

9) c

10) c

11) c

12) b

13) c

14) a

15) d

16) d

17) a

18) d

19) d

20) a

21) c

22) c
23) b

24) d

25) b

26) a

27) a

28) d

29) a

30) b

31) b

32) a

33) d

34) a

35) b

36) c

37) c

38) c

39) c

40) c

41) b
42) b

43) d

44) a

45) b

46) b

47) a

48) c

49) b

50) a

51) a

52) c

53) b

54) a

55) b

56) c

57) d

58) b

59) a

60) a
61) b

62) d

63) b

64) b

65) a

66) b

67) c

68) c

69) d

70) d

71) c

72) a

73) b

74) b

75) b

76) a

77) d

78) b

79) b

80) d
81) a

82) c

83) b

84) d

85) a

86) c

87) c

88) d

89) c

90) c

91) b

92) d

93) a

94) b

95) a

96) b

97) c

98) d

99) a
100) d