Which of the following applies to process costing but does not apply to job costing? A) the use of equivalent b) separate identifiable jobs c) the need for material ledger sheets d) the use of predetermined overhead rates e) the use subsidiary ledgers
Close division in Indianapolis but still make product in Louisville. A) Extraordinary b) discontinued c) cumulative change d) none of the above
Change from the FIFO and LIFO. A) Extraordinary b) discontinued c) cumulative change e) none of the above
Flood loss. It was the first flood in 50 years. A) Extraordinary b) discontinued c) cumulative change d) none of the above
Close division in Lexington. No longer make product. A) Extraordinary b) Discontinued c) cumulative change d) none of the above
Revenue from one division omitted from last year's income statement. A) Extraordinary b) discontinued c) cumulative change d) none of the above
The cumulative feature of preferred stock a) limits the amount of dividends that can be received b) requires dividends not paid to be made up in later years c) means stockholders can accumulate preferred stock d) enables stockholders to accumulate dividends and receive common stock instead of cash e) none of the above
For dividends, which of the following does not require a journal entry? A) date of declaration b) date of record c) date of payment d) entry required for all of the above e) none of the above
Which of the following does not result in an increase to Retained Earnings? A) corrections of error in previous year, depreciation b) issue 3 for 1 stock split c) correction of error in previous year, income understated d) net income e) none of the above
All of the following persons are classified as employees under the federal income tax withholding law with the exception of: a) supervisors b) the president of a company c) the partner in a partnership d) an elected official in the state government e) a worker on the assemble line
A parcel of real estate that contains and a building a purchased. The land is valued at $10,000 on the books and appraised at $20,000; and the building is valued at $25,000 on the books and appraised at $40,000. If the total purchase price is $120,000, the amount allocated to land is: a) $120,000 b) $80,000 c) $60,000 d) $40,000 e) $48,000
Sold shares of common stock: a) operating section b) investing section c) financing section d) non cash activities
Net income: a) operating section b) investing section c) financing section d) non cash activities
Purchased equipment, paying cash: a) operating section b) investing section c) financing section d) non cash activities
Change in Inventory: a) operating section b) investing section c) financing section d) non cash activities
Sold a truck: a) operating section b) investing section c) financing section d) non cash activities
Purchased land by issuing a mortgage payable: a) operating section b) investing section c) financing section d) non cash activities
The XYZ Co. traded its truck, which originally cost $100,00 and had accumulated depreciation of $84,000 for a new delivery truck with a sticker price of $170,000. The XYZ got a trade-in allowance of $20,000 for their current truck and needed to pay cash of $140,000. The amount of the gain recognized on this transaction is: a) $4,000 b) $14,000 c) none, it is a $4,000 loss d) $0 e) $400
Under which of the following conditions would material flood damage be considered an extraordinary item for financial reporting purposes? A) only if floods in the geographical area are unusual in nature and occur infrequently b) only if the flood damage could have been reduced by prudent management c) under any circumstance d) flood damage should never be classified as an extraordinary e) none of the above
At December 31 for the past two years Lane Co. had 200,000 shares of common stock and 20,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared any of the stock for the past two years. Net income for 2003 was $1,000,000.