Accounting

One disadvantage of the LIFO method is that:

One disadvantage of the LIFO method is that:

One disadvantage of the LIFO method is that:
A) flow of goods and flow of costs are the same.
B) it matches current selling prices and current costs.
C) an equal cost is assigned to each unit, so net income does not fluctuate as much a

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Augustis

A $1,000 bond quoted at 98 would sell for:

A $1,000 bond quoted at 98 would sell for:

A $1,000 bond quoted at 98 would sell for:
A) $980.
B) $1,000.
C) $98.
D) None of the above

majestico   91   3 Replies

Augustis

Hawkeye Golf is considering dropping the clothing department because it is not generating a profit ...

Hawkeye Golf is considering dropping the clothing department because it is not generating a profit ...

Hawkeye Golf is considering dropping the clothing department because it is not generating a profit as disclosed by the following data:

Sales   $1,800
Cost of Goods Sold   800
Gross Profit    $1,000
Direct Expenses   700
Contrib

majestico   57   3 Replies

Augustis

A record showing the activity and the balances owed by each customer is called the:

A record showing the activity and the balances owed by each customer is called the:

A record showing the activity and the balances owed by each customer is called the:
A) accounts receivable subsidiary ledger.
B) cash receipts journal.
C) accounts payable journal.
D) sales journal.

majestico   141   3 Replies

Augustis

Prepare journal entries for the following transactions for Jane's Violin Shop applying the ...

Prepare journal entries for the following transactions for Jane's Violin Shop applying the ...

Prepare journal entries for the following transactions for Jane's Violin Shop applying the perpetual inventory system. Omit explanations.

May   12 Purchased on account 2 boxes of bows for $200.
   16 Returned 2 bows for $20 credit.

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Augustis

A net loss would occur if the contribution margin is less than indirect expenses.

A net loss would occur if the contribution margin is less than indirect expenses.

A net loss would occur if the contribution margin is less than indirect expenses.
A) True
B) False

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Augustis

The statement of retained earnings does not include the account Preferred Stock.

The statement of retained earnings does not include the account Preferred Stock.

The statement of retained earnings does not include the account Preferred Stock.
A) True
B) False

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Augustis

Prior period adjustments are not included in the statement of retained earnings.

Prior period adjustments are not included in the statement of retained earnings.

Prior period adjustments are not included in the statement of retained earnings.
A) True
B) False

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Augustis

Purchased merchandise with cash; terms of 2/10, n/30. - PerpetualDebit ________ Credit ________

Purchased merchandise with cash; terms of 2/10, n/30. - PerpetualDebit ________ Credit ________

Purchased merchandise with cash; terms of 2/10, n/30. - Perpetual
Debit ________ Credit ________

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Augustis

Title passes from the seller to the buyer under F.O.B. ________ when the merchandise arrives at its ...

Title passes from the seller to the buyer under F.O.B. ________ when the merchandise arrives at its ...

Title passes from the seller to the buyer under F.O.B. ________ when the merchandise arrives at its destination.

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Augustis

The ________ system of accounting for inventory does not provide information about the balance in ...

The ________ system of accounting for inventory does not provide information about the balance in ...

The ________ system of accounting for inventory does not provide information about the balance in merchandise inventory on a transaction-by-transaction basis.

majestico   78   3 Replies

Augustis

Under a perpetual inventory system, inventory purchases are entered in the Merchandise Inventory ...

Under a perpetual inventory system, inventory purchases are entered in the Merchandise Inventory ...

Under a perpetual inventory system, inventory purchases are entered in the Merchandise Inventory account at cost.
A) True
B) False

majestico   143   3 Replies

Augustis

Electricity for the general lighting in a department store. ________

Electricity for the general lighting in a department store. ________

Electricity for the general lighting in a department store. ________

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Augustis

The arrangements between buyer and seller as to when payments for merchandise are to be made are ...

The arrangements between buyer and seller as to when payments for merchandise are to be made are ...

The arrangements between buyer and seller as to when payments for merchandise are to be made are called:
A) cash on demand.
B) discount period.
C) net cash.
D) credit terms.

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Augustis

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% ...

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% ...

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the sale were 2/10, n/30. Which entry is required to record this?
A) Debit Cash, $936; credit Sales, $936
B) Debit Cash,

majestico   75   3 Replies

Augustis

Indirect expenses are subjective in nature and may be allocated in a number of ways.

Indirect expenses are subjective in nature and may be allocated in a number of ways.

Indirect expenses are subjective in nature and may be allocated in a number of ways.
A) True
B) False

majestico   82   3 Replies

Augustis

Which of the following would be used to record the payment for purchases under the periodic ...

Which of the following would be used to record the payment for purchases under the periodic ...

Which of the following would be used to record the payment for purchases under the periodic system?
A) Credit to Accounts Payable
B) Debit to Accounts Payable
C) Debit to Purchase Discounts
D) Debit to Cash

majestico   80   3 Replies

Augustis

The journal entry to record the return of a purchase of inventory under the periodic system includes ...

The journal entry to record the return of a purchase of inventory under the periodic system includes ...

The journal entry to record the return of a purchase of inventory under the periodic system includes a:
A) credit to Merchandise Inventory.
B) credit to Purchases.
C) credit to Purchases Returns and Allowances.
D) debit to Merchan

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Augustis

Sports apparel department's gross profit is $300,000; clothing department gross profit is $300,000; ...

Sports apparel department's gross profit is $300,000; clothing department gross profit is $300,000; ...

Sports apparel department's gross profit is $300,000; clothing department gross profit is $300,000; indirect advertising expense is $6,000. Indirect expense charged to the sports apparel department based on gross profit would be $3,600.
A)

majestico   118   3 Replies

Augustis

The liability account used to record sales tax owed is:

The liability account used to record sales tax owed is:

The liability account used to record sales tax owed is:
A) Sales Tax Payable.
B) Sales.
C) Sales Tax Expense.
D) Prepaid Taxes.

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Augustis

Which allocation base is best used to allocate building depreciation?

Which allocation base is best used to allocate building depreciation?

Which allocation base is best used to allocate building depreciation?
A) Hours used
B) Square feet of space used
C) Number of employees
D) Building depreciation can be separately traced to each department.

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Augustis

Credit terms of 2/10, n/30 mean that:

Credit terms of 2/10, n/30 mean that:

Credit terms of 2/10, n/30 mean that:
A) a 2% discount is allowed if the bill is paid within 30 days.
B) a 2% discount is allowed if the bill is paid within between 10 and 30 days.
C) a 2% discount is allowed if the bill is paid after

majestico   97   3 Replies

Augustis

Betty's Boutique discounts its own 150-day, 9%, $20,000 note payable at a bank. It records the ...

Betty's Boutique discounts its own 150-day, 9%, $20,000 note payable at a bank. It records the ...

Betty's Boutique discounts its own 150-day, 9%, $20,000 note payable at a bank. It records the proceeds as:
A) debit Cash $19,250; debit Discounts on Notes Payable $750; credit Notes Receivable $20,000.
B) debit Cash $19,250; credit No

majestico   62   3 Replies

Augustis

The W-3 is also known as the Transmittal of Wage and Tax Statements.

The W-3 is also known as the Transmittal of Wage and Tax Statements.

The W-3 is also known as the Transmittal of Wage and Tax Statements.
A) True
B) False

majestico   63   3 Replies

Augustis

Compute net income for the housewares department, when gross profit is $650,000, direct expenses ...

Compute net income for the housewares department, when gross profit is $650,000, direct expenses ...

Compute net income for the housewares department, when gross profit is $650,000, direct expenses $235,000, indirect expenses are $90,000 and sales are $875,000.
A) $205,000
B) $325,000
C) $530,000
D) ($20,000)

majestico   87   3 Replies

Augustis

The individual employee earnings for all employees in a company are summarized on the W-3 form.

The individual employee earnings for all employees in a company are summarized on the W-3 form.

The individual employee earnings for all employees in a company are summarized on the W-3 form.
A) True
B) False

majestico   95   3 Replies

Augustis

Employees must receive W-3s by January 31 of the following year.

Employees must receive W-3s by January 31 of the following year.

Employees must receive W-3s by January 31 of the following year.
A) True
B) False

majestico   91   3 Replies

Augustis

A stock split will decrease total stockholders' equity and the number of shares of stock issued.

A stock split will decrease total stockholders' equity and the number of shares of stock issued.

A stock split will decrease total stockholders' equity and the number of shares of stock issued.
A) True
B) False

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Augustis

Direct expenses are those expenses that:

Direct expenses are those expenses that:

Direct expenses are those expenses that:
A) cannot be identified with a specific department.
B) can be identified with a specific department.
C) can be identified with more than one department.
D) None of these answers is correct.

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Augustis

The board of Bogswell, Inc. declared a $2 per share cash dividend on common stock. The corporation ...

The board of Bogswell, Inc. declared a $2 per share cash dividend on common stock. The corporation ...

The board of Bogswell, Inc. declared a $2 per share cash dividend on common stock. The corporation has 4,000 shares of common stock outstanding. The entry required to declare the dividend is:
A) debit Retained Earnings; credit Dividends Payable.

majestico   70   3 Replies

Augustis

The proceeds of a discounted note are the maturity value less the bank discount.

The proceeds of a discounted note are the maturity value less the bank discount.

The proceeds of a discounted note are the maturity value less the bank discount.
A) True
B) False

majestico   110   3 Replies

Augustis

Explain the difference between a "cost center" and a "profit center."

Explain the difference between a "cost center" and a "profit center."

Explain the difference between a "cost center" and a "profit center."

majestico   61   3 Replies

Augustis

The tax offices of a CPA firm. ________

The tax offices of a CPA firm. ________

The tax offices of a CPA firm. ________

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Augustis

Bailey's Western Wear has 3,000 shares of $20 par value common stock outstanding. During the ...

Bailey's Western Wear has 3,000 shares of $20 par value common stock outstanding. During the ...

Bailey's Western Wear has 3,000 shares of $20 par value common stock outstanding. During the current year, the company distributed a 5% stock dividend. The market value of the stock at that time was $15 per share. Bailey's total stockholder

majestico   64   3 Replies

Augustis

The discount period on a discounted note is:

The discount period on a discounted note is:

The discount period on a discounted note is:
A) the time between the original date and the discount date.
B) the original note period minus 10 days.
C) the time between the discount date and the maturity date.
D) the same as the o

majestico   94   3 Replies

Augustis

Different deposit rules apply to employers based on the amount collected and owed by that employer ...

Different deposit rules apply to employers based on the amount collected and owed by that employer ...

Different deposit rules apply to employers based on the amount collected and owed by that employer for payroll taxes.
A) True
B) False

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Augustis

When a note receivable is discounted, the business that endorses the note becomes potentially liable ...

When a note receivable is discounted, the business that endorses the note becomes potentially liable ...

When a note receivable is discounted, the business that endorses the note becomes potentially liable to the bank. This type of liability is called a:
A) contingent liability.
B) conditional liability.
C) dependent liability.
D) po

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Augustis

A department income statement showing gross profit by department is a useful tool in analyzing ...

A department income statement showing gross profit by department is a useful tool in analyzing ...

A department income statement showing gross profit by department is a useful tool in analyzing performance of individual departments.
A) True
B) False

majestico   87   3 Replies

Augustis

In departmental accounting, it is necessary to break down revenue and expenses by departments.

In departmental accounting, it is necessary to break down revenue and expenses by departments.

In departmental accounting, it is necessary to break down revenue and expenses by departments.
A) True
B) False

majestico   75   3 Replies

Augustis

When calculating book value per share, if a redemption value is not stated, market value is used ...

When calculating book value per share, if a redemption value is not stated, market value is used ...

When calculating book value per share, if a redemption value is not stated, market value is used instead.
A) True
B) False

majestico   67   3 Replies

Augustis