1.Which of the following is not a direct departmental expense in a sales department?

a) Sales salaries

b)Delivery expense for related items

c)Advertising for the sales department

d)All are direct departmental expenses.

2.The journal entry to pay a cash dividend is to:

a) debit Dividends Payable; credit Cash.

b) debit Retained Earnings; credit Cash.

c)debit Dividends Payable; credit Retained Earnings.

d) debit Retained Earnings; credit Dividends Payable.

3.Which of the following is not a direct departmental expense in a sales department?

a) Sales salaries

b) Delivery expense for related items

c) Advertising for the sales department

d)All are direct departmental expenses.

4.If direct labor for the month is $30,000, overhead is applied based on direct labor, annual overhead is estimated to be $500,000, and annual direct labor is estimated to be $800,000, what is the entry to apply overhead to production?

a) Debit Work-in-Process Inventory $18,750; credit Payroll $18,750

b) Debit Overhead-Applied $18,750; credit Work-in-Process Inventory $18,750

c) Debit Work-in-Process Inventory $18,750; credit Overhead-Applied $18,750

d) Debit Work-in-Process Inventory $30,000; credit Overhead-Applied $30,000

5. Interest expense was $10,000, income tax expense $20,000, and net income after taxes is $60,000. The number of times interest was earned is:

a) nine times.

b) eight times.

c) seven times.

d) six times.

6. Tricia and Jennifer formed a partnership. Tricia invested $10,000 in cash, and Jennifer invested $5,000 in cash, equipment valued at $6,000, and $1,000 accounts payable. The proper entry to record this is:.

a) debit Cash 15,000; debit Equipment 6,000; credit Accounts Payable $1,000; credit Tricia's Capital $10,000; credit Jennifer's Capital $10,000.

b) debit Cash 15,000; debit Equipment 6,000; debit Accounts Payable $1,000; credit Tricia's Capital $10,000; credit Jennifer's Capital $10,000.

c) debit Cash $15,000; debit Equipment $6,000; credit Tricia's Capital $10,000; credit Jennifer's Capital $10,000.

d) debit Cash $15,000; debit Equipment $6,000; credit Tricia's Capital $10,000; credit Jennifer's Capital $11,000.

7. Which would not go into the operating activities section of a statement of cash flows using the direct method?

a)Depreciation expense

b)Payment for dividends

c) Selling of plant, property, and equipment

d) All of the above.

8. Which of the following is true of a partnership?

a) Actions of one partner are binding on all the other partners.

b) Each partner is individually liable for partnership debts.

c) All of the owners always share income and losses equally.

d) Both A and B.

9. The Overhead-Control account is used for the:

a) application of overhead to production, and it has a debit balance.

b) accumulation of all actual overhead costs, and it has a credit balance.

c) application of overhead to production, and it has a credit balance.

d) accumulation of all actual overhead costs, and it has a debit balance.

10. What inventories are included in determining total manufacturing costs?

a) Beginning and ending finished goods

b) Beginning and ending raw materials

c) Beginning and ending work-in-process

d) None of the above.