1.Which of the following items is regarded as a cash flow from operating activities?

Cash dividends paid

Proceeds from sale of equipment which resulted to a gain

Proceeds from sale of equipment which resulted to a loss

Interest paid on long-term debt

2.On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will mature on January 1, 2029. The interest is payable semi-annually on January 1 and July 1 of each year. Company B paid transaction costs amounting to $50,000. How much would be the net cash receipts of Company B as a result of the bond issuance?

$1,000,000

$1,030,000

$980,000

$1,050,000

3.Company H acquired an equipment on June 1, 2020 amounting to $35,000 with an estimated useful life of 5 years. What would be the reported carrying value of the equipment on December 31, 2021 if the residual value at the end of 5 years is $5,000?

$25,500

$32,000

$29,000

$26,000

4.When the contribution margin per unit increases assuming all other factors remain constant. The effect would be

An increase in sales price

A decrease in fixed cost

An increase in break-even point in units

A decrease in break-even point in units

5.Company C produced 10,000 units of Product C-123 for the month of October 200A. The prime cost for the month is $50,000, the direct labor is $15,000, and the manufacturing overhead cost is $10,000. Company C sold 8,000 units in October for $10 per unit. Also, there were no ending inventories for the month of September 200A. How much is the total cost of goods sold for the month of October 200A?

$80,000

$60,000

$52,000

$48,000

6.The total direct labor variance of Company J for the month of October 2020 is $500 unfavorable. The direct labor efficiency variance is $800 favorable. How much is the standard direct labor rate per hour if the actual direct labor cost is $10,000 for 1,000 hours?

$11.30

$10.00

$9.50

$8.70

7.X Company estimates that 2% of its sales on account for the year ended December 31, 200A will be uncollectible. If the total sales is $4,500,000 and 20% is cash sales, the adjusting entry for the December 31, 200A will include

Accounts Receivable $90,000

Allowance for Bad Debts $ 72,000

Bad Debts Expense $ 18,000

An adjusting entry is not necessary

8.Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as outstanding accounts receivable if Company Z has a total sale of $1,800,000 of which $200,000 are cash sales and the beginning and ending accounts receivable balances are $30,000 and $50,000, respectively.

11.40 days

9.13 days

6.84 days

8.11 days

9.Mr. D recently manufactured a product that will be introduced to the market next year. The unit cost is $210. Mr. D wishes to achieve a margin of 25% based on sales. How much would Mr. D sell the product for?

$262.50

$280.00

$367.50

$250.00

10.The amortization of premium on bonds payable will _____________ the net income.

increase

decrease

not affect

offset