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Study Resources (Accounting)

11) The following is summary of information presented on the financial statements of a company on December 31, 2015. Account 2015 2014 Current Assets $82,000 $70,000 Accounts Receivable 60,000 68,000 Merchandise Inventory 62,000 53,000 Current Liabilities 52,000 46,000 Long-term Liabilities 39,000 45,000 Common Stock 70,000 50,000 Retained Earnings 65,000 40,000 What would a horizontal analysis report show with respect to long-term liabilities? A) long-term liabilities decreased by $30,000 B) long-term liabilities decreased by 40% C) long-term liabilities decreased.
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11) Star Health Inc. is a fitness center in Oklahoma City. In October, the company earned $550,000 in revenues and incurred the following operating costs from 340 customers: Manager's salary $50,000 Gym Rent 60,000 Depreciation Expense—Equipment 25,000 Office Supplies 30,000 Utilities Expense 89,700 Trainer's Salary 25,000 How much is the unit cost per customer service? A) $795.00 B) $749.12 C) $1,617.65 D) $822.65 12) Kentucky purchases and sells widgets..
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31) Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, they fixed the manufacturing overhead rate at 20% times the direct labor cost. In the month of June, Venus completed Job 13C the costs of which are as.
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21) Partial income statements of Company A and Company B are provided below: Which of the following statements is true? A) Company A is a merchandising company. B) Company B is a manufacturing company. C) Company A is a manufacturing company. D) Company A is a service company. 22) Product costs are expensed: A) when the products.
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22) Donald Corp. reported the following on its comparative income statement: (In millions)              2017     2016     2015 Revenue$728$675$500 Cost of goods sold312258220 Prepare a horizontal analysis of revenues and cost of goods sold, both in dollar amounts and in percentages, for 2016 and 2017. Round your percentage answers to two decimal places. 23) Donald Corp. reported the following revenues.
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19) Prepare a comparative common-size income statement for Nobell Inc. using the 2015 and 2014 data. Round off the percentages to one decimal place. Nobell Inc. Comparative Income Statement Years Ended December 31, 2015 and 2014 20152014 Net Sales$ 6,355$ 4,920 Cost of Goods Sold3,3702,200 Gross Profit2,9852,720      Operating Expenses: Selling Expenses675580 Administrative expenses410425 Total Expenses1,0851,005 Operating Income1,9001,715      Other Revenues and (Expenses): Interest.
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Learning Objective 17-4 1) Working capital measures the ability to meet long-term obligations with current assets. 2) The current ratio is calculated as the total current assets divided by the total current liabilities. 3) A high current ratio indicates that current liabilities are more than current assets. 4) The cash ratio helps to determine.
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Learning Objective 17-3 1) An analysis of a financial statement that reveals the relationship of each statement item to its base amount, which is the 100% figure, is known as vertical analysis. 2) In a vertical analysis of the income statement, each line item is shown as a percentage of net sales. 3).
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21) Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. The manufacturing overhead costs will be allocated based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed Job A33, which used 60 machine hours and 15 direct.
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Learning Objective 19-1 1) Accounting firms, building contractors, and healthcare providers use process costing. 2) A job order costing system is used by companies that manufacture batches of unique products or provide specialized services. 3) A process costing system is used when a company produces identical units through a series of production steps. 4).
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21) Barricades Corporation provided the following information for the year 2015: Beginning Balance—Work-in-Process Inventory $24,000 Ending Balance—Work-in-Process Inventory 56,000 Beginning Balance—Raw Materials Inventory 84,000 Ending Balance—Raw Materials Inventory 60,000 Purchases—Raw Materials 360,000 Direct Labor 470,000 Indirect Materials 47,000 Indirect Labor 19,000 Depreciation on Factory Plant & Equipment 24,000 Plant Utilities & Insurance 270,000 What was the amount of direct materials used in production during 2015? A) $360,000 B) $504,000 C) $384,000 D) $328,000 22) Barricades Corporation.
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Learning Objective 18-4 1) The cost of goods manufactured includes selling expenses, administrative expenses, and manufacturing overhead. 2) Merchandiser's inventory consists of raw materials inventory, work-in-process inventory, and finished goods inventory. 3) Total manufacturing costs to account for during the year minus the ending work-in-process inventory equals the cost of goods manufactured. 4) Which.
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Learning Objective 18-5 1) Managerial accounting is used in manufacturing and merchandising companies, but not in service companies. 2) Service companies do not have product costs so they often consider all operating expenses as part of their cost of service. 3) Managerial accounting can be used to calculate costs for service and merchandising.
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21) In a manufacturing firm, advertising and marketing costs are included in manufacturing overhead. 22) In a manufacturing firm, accounting, legal, and administrative costs are typical examples of product costs. 23) In a manufacturing firm, administrative costs are included in period costs. 24) Repair and maintenance costs for factory equipment are product costs. 25).
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6) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the following transactions: Issued Common Stock for $28,000 Issued new Long-Term Notes Payable for $34,000 Repaid Long-Term Notes Payable for $40,000 Avatar Company Spreadsheet for Statement of Cash Flows Year Ended.
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Learning Objective 18-1 1) Managerial accounting focuses on providing information for internal planning and control. 2) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders. 3) The IMA standards of ethical practice require managerial accountants to maintain their professional competence. 4) The accountant for Myra Lido deliberately deferred.
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Learning Objective 17-5 1) A corporation's income statement includes some unique items that do not often apply to smaller businesses. 2) Income from continuing operations helps investors to make predictions about past performance of the company. 3) The disposal of a financial segment would be reported as discontinued operations. 4) Gains and losses on.
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11) Which of the following types of financial statement analysis would be used to see how a company's operating expenses as a percentage of net sales have changed from one year to the next? A) vertical analysis B) horizontal analysis C) ratio analysis D) analysis of internal control system 12) The vertical analysis statement of.
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51) For a manufacturing business, which of the following would be considered a product cost? A) Research and development B) Property taxes on the factory C) Advertising D) Delivery costs 52) For a manufacturing business, which of the following would be considered a product cost? A) Salary of the sales manager B) Salary of the CEO C) Salaries.
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11) Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer? A) office telephone expenses B) salaries paid to accountants C) factory electricity expense D) cost of printing brochures 12) The predetermined overhead allocation rate is the rate: A) used to assign direct material costs to jobs. B) used to allocate.
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11) The income statement of a service company will most likely include: A) salary expense. B) factory overhead. C) cost of goods sold. D) direct materials. 12) Which of the following is true of service companies? A) All of service companies' costs are product costs. B) Service companies modify and resell products they buy from manufacturers. C) Revenues.
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21) Which of the following is the primary objective of managerial accounting? A) providing information that managers need to make operational decisions B) providing historical data to investors and creditors C) providing summarized results of operations D) providing information to comply with laws and regulations of government bodies 22) Which of the following is the.
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Learning Objective 19-3 1) Actual manufacturing overhead costs are credited to the Manufacturing Overhead account. 2) In a manufacturing operation, depreciation of plant equipment should be debited to the Depreciation Expense account. 3) Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account. 4) The amount.
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8) Avatar Company uses the indirect method to prepare its statement of cash flows. Refer to the partially completed worksheet below. Complete the worksheet, including the data showing the net change in cash, plus all control totals. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec.
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Learning Objective 17-1 1) An annual report provides information about a company's financial condition. 2) A quarterly report filed with the Securities and Exchange Commission is called a Form 10-K. 3) Management's discussion and analysis section of the annual report is the company's attempt to explain its financial statements and to discuss its.
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Learning Objective 18-2 1) Product costs, such as direct materials, are expensed in the period they were paid. 2) Unlike merchandising companies, income statements of service companies include cost of goods sold as a line item. 3) Manufacturing businesses have inventory accounts, but merchandising businesses do not. 4) Manufacturing businesses produce their own products,.
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31) Which of the following accurately describes working capital? A) Current assets minus merchandise inventory B) Current assets minus current liabilities C) Total debt minus stockholders' equity D) Cost of goods sold divided by average merchandise inventory 32) Nobell Inc. provides the following data: 2015 2014 Cash $21,000 $18,000 Accounts Receivable, Net 31,000 35,000 Merchandise Inventory 53,000 25,000 Property, Plant, and Equipment, Net 120,000 90,000 Total assets $225,000 $168,000 Net credit sales $240,000 Cost of.
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41) Davie Company used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,000,000 in establishing its 2015 predetermined overhead allocation rate. Actual results showed: Actual manufacturing overhead $900,000 Allocated manufacturing overhead $875,000 What was the number of direct labor hours worked during 2015? A) 225,000 hours B) 243,056 hours C) 250,000 hours D) 218,750 hours 42).
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31) Best Company, a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015: Utilities Expense $6,000 Rent for Store Expense 8,000 Sales Commissions Expense 4,500 Purchases of Merchandise 54,000 Inventory on January 1, 2015 30,000 Inventory on December 31, 2015 20,500 Sales Revenue 108,000 Required: Prepare an income statement for Best Company for the year ended December 31, 2015, using the.
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31) In a manufacturing firm, which of the following is an example of a period cost? A) Advertising expense B) Depreciation on factory equipment C) Indirect materials D) Property taxes for the factory 32) Which of the following is a part of manufacturing overhead? A) Cost of raw materials B) Wages of assembly line workers C) Factory insurance D).
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1) When raw materials are requisitioned for a job, the Raw Materials Inventory account is debited. 2) Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system. 3) When direct materials are received on the production floor, they are recorded on the job cost record. 4) Manufacturing.
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7) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the following transactions: Purchased Treasury Stock for $3,000 Paid dividends of $10,000 Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec 31, 2013DebitCreditDec.
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31) Evanston Manufacturing Company reported the following information for the year 2015: Number of Units Produced 4,800 Number of Units Sold 5,250 Cost of Goods Manufactured $460,800 Cost of Goods Sold $488,250 Sales Revenue $1,260,000 Gross Profit $771,750 Operating Expense $724,900 What was the unit product cost? A) $87.77 B) $262.50 C) $93.00 D) $96.00 32) South State Company used $71,000 of direct materials and incurred $37,000 of direct labor.
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17) Prepare the vertical analysis report of the balance sheet data given below: Round off the percentages to two decimal places   Balance Sheet December 31, 2015 2015        Assets Current Assets: Cash and Cash Equivalents$10,000 Accounts Receivable, Net15,600 Merchandise Inventory38,000 Total Current Assets$63,600 Long-term Investments$15,000 Property, Plant, and Equipment, Net195,000 Total Assets$273,600        Liabilities Current Liabilities: Accounts Payable$8,500 Notes Payable1,400 Total Current Liabilities$9,900 Long-term Liabilities$54,000 Total Liabilities$63,900        Stockholders' Equity Common.
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4) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the increases and decreases in current assets (other than cash) and current liabilities. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance.
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11) Direct costs and indirect costs can be easily traced directly to a cost object. 12) In a manufacturing firm, the salary of sales staff is an example of period cost. 13) Wages of factory janitors is considered non-manufacturing overhead, as these are not directly related to the manufacturing process. 14) Indirect materials.
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11) Which of the following is an objective of management accounting? A) to generate financial statements of a company for tax reporting B) to provide information to business managers to assist them in controlling their business C) to provide information to shareholders to assist them with their investment decisions D) to ensure that the.
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41) Which of the following is a product cost? A) Sales commissions B) CEO's salary C) Delivery van depreciation D) Depreciation on production equipment 42) Which of the following correctly describes the accounting for indirect labor costs? A) Indirect labor costs are product costs and are expensed as incurred. B) Indirect labor costs are period costs and.
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5) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the acquisition of plant assets for $52,000 cash. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec 31, 2013DebitCreditDec 31, 2014 Cash$18,000$21,000 Accounts.
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20) Data for Nobell Inc. follow: 20152014 Net Sales$850,000$798,000 Cost of Goods Sold635,000580,000 Selling and Administrative Expenses50,00035,000 Other Expenses20,00015,000 Income Tax40,00055,000 Prepare a horizontal analysis of the comparative income statement of Nobell Inc. Round percentage changes to one decimal place. Please use a multiple step income statement. 21) Atlantis Inc. provides the following historical data: 201620152014201320122011 Net sales$4,970$4,500$3,980$3,270$4,750$4,400 Prepare the trend.
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11) Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period. A) allocate B) assign C) accumulate D) approximate 12) The journal entry to issue indirect materials to production should include a debit to the: A) Finished Goods Inventory account. B) Raw Materials Inventory account. C) Manufacturing Overhead account. D) Work-in-Process Inventory account. 13).
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41) Partridge Inc. provides the following information for the year 2014: Net income $31,200 Market price per share of common stock $12.00/share Dividends paid $0.80/share Common stock outstanding at Jan 1, 2015 110,000 shares Common stock outstanding at Dec 31, 2016 150,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. A) 6.67% B) 1.67% C) 3.67% D) 4.67% 42).
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21) As per FASB guidelines, earnings per share should appear on the face of the income statement. 22) The price/earnings ratio shows the market price of $1 of earnings. 23) The dividend payout ratio indicates the amount of the dividend as a proportion of a share's market price. 24) The price/earnings ratio indicates.
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29) Excellent Company sells accounting textbooks. The following information summarizes Excellent's operating activities for 2015: Merchandise Inventory, January 1, 2015 $10,000 Merchandise Inventory, December 31, 2015 7,000 Purchases 95,000 Selling and Administrative Expenses 65,000 Sales Revenue 180,000 Required: Prepare Excellent Company's income statement for the year ended December 31, 2015. 30) Simons Company sells plastic ware. The following information summarizes Simons' operating.
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11) Jasper Inc. reports the following cost information for March: Cost of Goods Manufactured $75,000 Manufacturing Overhead 18,250 Finished Goods Inventory, March 1 4,500 Finished Goods Inventory, March 31 2,650 Work-in-Process Inventory, March 1 9,670 Work-in-Process Inventory, March 31 1,250 Direct Materials Used 25,300 What is the cost of goods sold for March? A) $83,420 B) $73,150 C) $76,850 D) $82,150 12) Jasper Inc. reports the following cost information for.
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Learning Objective 18-3 1) Product costs, such as factory overhead, should be treated as an asset until the product is sold. 2) Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials. 3) Manufacturing overhead includes indirect manufacturing costs, such as insurance and depreciation on the factory building. 4) All costs.
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Learning Objective 17-2 1) The study of percentage changes in comparative financial statements is called horizontal analysis. 2) Horizontal analysis compares each item in the income statement to the net sales amount. 3) Trend analysis is a form of horizontal analysis. 4) If an analyst wants to see how gross profit of a company.
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18) Data for Atlantis Inc. is given below: Atlantis Inc. Comparative Balance Sheet December 31, 2015 and 2014 20152014 Assets Current Assets: Cash$12,000$10,200 Accounts Receivable, Net16,10016,800 Merchandise Inventory45,00031,000 Prepaid Expenses6,5003,900 Total Current Assets$79,600$61,900 Property, Plant, and Equipment, Net265,000233,000 Total Assets$344,600$294,900 Liabilities Total Current Liabilities$9,900$11,200 Long-term Liabilities60,00050,000 Total Liabilities69,90061,200 Stockholders' Equity Preferred Stock, 3%75,00075,000 Common Stockholders' Equity, no par$199,700$158,700 Total Liabilities and Stockholders' Equity$344,600$294,900 Prepare a horizontal analysis of the comparative balance sheet.
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