21) 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 22) Close division in Indianapolis but still make product in Louisville. A) Extraordinary b) discontinued c) cumulative change d) none of the above 23) Change from the FIFO and LIFO. A) Extraordinary b) discontinued c) cumulative change e) none of the above 24) Flood loss. It was the first flood in 50 years. A) Extraordinary b) discontinued c) cumulative change d) none of the above 25) Close division in Lexington. No longer make product. A) Extraordinary b) Discontinued c) cumulative change d) none of the above 26) Revenue from one division omitted from last years income statement. A) Extraordinary b) discontinued c) cumulative change d) none of the above 27) 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 28) 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 29) 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 30) 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 31) 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 32) Sold shares of common stock: a) operating section b) investing section c) financing section d) non cash activities 33) Net income: a) operating section b) investing section c) financing section d) non cash activities 34) Purchased equipment, paying cash: a) operating section b) investing section c) financing section d) non cash activities 35) Change in Inventory: a) operating section b) investing section c) financing section d) non cash activities 36) Sold a truck: a) operating section b) investing section c) financing section d) non cash activities 37) Purchased land by issuing a mortgage payable: a) operating section b) investing section c) financing section d) non cash activities 38) 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 39) 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 40) 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. Basic earnings per share for 2003 was: a) $5.00 b) $4.75 c) $4.50 d) $4.00 e) $2.50