9. Which inventory costing method most closely approximates current cost for ending inventory? A. moving-average B. first-in, first-out C. last-in, first-out D. weighted-average

10. June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 10 units that cost $20 per unit. During the current month, the company purchased 60 units at $20 each. Sales during the month totaled 45 units for $43 each. What is the cost of goods sold using the FIFO method? A. $200 B. $900 C. $1,200 D. $1,696

11. LCNRV (=Lower of Cost or Net Realizable Value) of inventory A. is always either the net realizable value or its cost. B. should always be equal to net realizable value. C. may sometimes be less than net realizable value. D. should always be equal to net realizable value less costs to complete.

12. The following information is available for October for Barton Company. Beginning inventory $ 50,000 Net purchases 150,000 Net sales 300,000 Percentage markup on cost 66.67% A fire destroyed Barton's October 31 inventory, leaving undamaged inventory with a cost of $3,000. Using the gross profit method, the estimated ending inventory destroyed by fire is A. $17,000 B. $77,000 C. $80,000 D. $58,000

13. Wilson Co. purchased land as a factory site for $600,000. Wilson paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. The contractor was paid $2,200,000. An assessment made by the city for pavement was $6,400. Interest costs during construction were $170,000. The cost of the land that should be recorded by Wilson Co. is A. $660,480. B. $666,880. C. $669,880. D. $676,280

14. Lee Company received an HK$1,800,000 subsidy from the government to purchase manufacturing equipment on January, 2, 2015. The equipment has a cost of HK$3,000,000, a useful life a six years, and no salvage value. Lee depreciates the equipment on a straight-line basis. If Lee chooses to account for the grant as deferred revenue, the grant revenue recognized will be: A. Zero in the first year of the grant's life. B. HK$300,000 per year for the years 2015-2020. C. HK$500,000 per year for the years 2015-2020. D. HK$1,800,000 in 2015.

15. Rivera Company purchased a tooling machine on January 3, 2008 for $500,000. The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no residual value. At the beginning of 2015, the company paid $125,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What should be the depreciation expense recorded for the machine in 2015? A. $ 15,800 B. $ 34,375 C. $ 41,667 D. $ 50,000

16. Which of the following is not an intangible asset? A. Trade name B. Research costs C. development cost with economic feasibility D. Franchise

17. Which of the following is a characteristic of a current liability but not a non-current liability? A. Unavoidable obligation. B. Present obligation that entails settlement by probable future transfer or use of cash, goods, or services. C. Settlement is expected within the normal operating cycle, or within 12 months after the reporting date. D. Transaction or other event creating the liability has already occurred.

18. During 2015, Stabler Co. introduced a new line of machinesthat carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2014 $ 400,000 $ 6,000 2015 1,000,000 30,000 2016 1,400,000 90,000 $2,800,000 $126,000 What amount should Stabler report as a liability at December 31, 2016? A. $ 0 B. $ 136,000 C. $ 185,000 D. $ 210,000

19. What is a characteristic of managerial accounting from the view of the comparison of financial and managerial accounting? A. Reporting to those outside the organization B. Emphasizing objectivity C. Following GAAP(Generally accepted accounting principle) D. Emphasizing relevance

20. Any cost is not be relevant in managerial decisions. What is the cost? A. Sunk cost B. Differential cost C. Variable cost D. Incremental cost

21. What is the level of units or sales at which profit is zero? A. Contribution margin B. Break-even point C. Margin of safety D. Target profit level

22. A flexible budget is an estimate of what revenues and costs should have been, given the ( ) for the period. A. actual level of activity B. planned level of activity C. targeted level of activity D. static level of activity

23. What is not a perspective of Balanced Score Card (BSC)? A. Financial perspective B. Customer perspective C. Vision and strategy D. Learning and growth

24. Return on investment (ROI) is defined as ( ) divided by average operating assets A. operating liability B. investment C. net income D. net operating income

25. The following costs were incurred in April: Direct materials $29,000 Direct labor $24,000 Manufacturing overhead $14,000 Selling expenses $18,000 Administrative expenses $18,000 Prime costs during the month totaled: A. $53,000 B. $67,000 C. $38,000 D. $103,000

26. Ricwy Corporation uses the cost formula Y = $4,800 + $0.40X for the maintenance cost, where X is machine-hours. The August budget is based on 9,000 hours of planned machine time. Maintenance cost expected to be incurred during August is: A. $4,800 B. $3,600 C. $8,400 D. $1,200

27. Harris Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $84.40 per unit. Sales volume (units) ..................... 5,000 6,000 Cost of sales................................. $285,000 $342,000 Selling and administrative costs.... $107,500 $120,000 The best estimate of the total variable cost per unit is: A. $77.00 B. $57.00 C. $69.50 D. $78.50 Refer to the following information for questions

28-30. A partial listing of costs incurred at Gilhooly Corporation during September appears below: Direct materials $183,000 Utilities, factory $9,000 Administrative salaries $90,000 Indirect labor $25,000 Sales commissions $33,000 Depreciation of production equipment $25,000 Depreciation of administrative equipment $32,000 Direct labor $124,000 Advertising $148,000

28. The total of the manufacturing overhead costs listed above for September is: A. $669,000 B. $366,000 C. $34,000 D. $59,000

29. The total of the product costs listed above for September is: A. $59,000 B. $366,000 C. $669,000 D. $303,000

30. The total of the period costs listed above for September is: A. $303,000 B. $59,000 C. $366,000 D. $362,000

Refer to the following information for questions 31-32. The companys contribution income statement is given below: Total Per Unit Sales (20,000 units) $1,200,000 $60 Variable Costs 900,000 $45 Contribution Margin 300,000 $15 Fixed Costs 240,000 Net Operating Income 60,000

31. The companys break-even point in units (Q) is: A. 10,000 B. 16,000 C. 20,000 D. 26,000

32. The companys break-even point in dollar sales ($) is: A. $ 410,000 B. $ 610,000 C. $ 860,000 D. $ 960,000

33. LeMay Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from LeMay Frosted Flakes boxes and $1.00. The company estimates that 60% of the boxtops will be redeemed. In 2015, the company sold 500,000 boxes of Frosted Flakes and customers redeemed 220,000 boxtops receiving 55,000 bowls. If the bowls cost LeMay Company $2.50 each, how much liability for outstanding premiums should be recorded at the end of 2015? A. $ 10,500 B. $ 20,000 C. $ 30,000 D. $ 40,500

34. All of the following are true of the recoverable amount used in the impairment test of a long-lived asset except: A. An asset's recoverable amount is the lower of its value-in-use and its fair value less cost to sell. B. An asset's recoverable amount is the higher of its fair value less cost to sell and its valuein-use. C. The recoverable amount is calculated as the asset's value in use less costs to sell. D. If an asset's recoverable amount is higher than the carrying amount, no impairment loss will be reported on the period's income statement.

35. Marsh Corporation purchased a machine on July 1, 2012, for $750,000. The machine was estimated to have a useful life of 10 years with an estimated residual value of $42,000. During 2015, it became apparent that the machine would become uneconomical after December 31, 2019, and that the machine would have no scrap value. Accumulated depreciation on this machine as of December 31, 2014, was $177,000. What should be the charge for depreciation in 2015? A. $ 106,200 B. $ 114,600 C. $ 123,000 D. $ 143,250

36. A corporation reported the following information for the past year: - Net Income $200,000 - Depreciation expense 30,000 - Gain on sale of truck 5,000 - Proceeds from sale of truck 8,000 - Decrease in accounts receivable 10,000 Assuming these are the only facts, what amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement? A $225,000 B $235,000 C $245,000 D $253,000

37. Company X provides consulting services to Client Q in May. Company X bills Client Q in May for the agreed upon amount of $5,000. The sales invoice shows that the amount will be due in June. In June, Company X receives the $5,000. What is the effect on the accounting equation and which accounts are affected at Company X? A. total assets : increase B. total assets : no effect C. total equity : increase D. total liabilities : decrease

38. Use this information to answer. - Selling price per unit: $17 - Fixed expenses Selling and aministrative $130,000 Interest expenses 10,000 - Variable expenses Cost of goods sold $4 Selling and aministrative 3 What is the break-even point in units? A. 10,000 B. 14,000 C. 20,000 D. 24,000

39. The ending balance in the account Prepaid Insurance is expected to report which of the following? A. The Accrued Amount Of Insurance Expense B. The Original Amount Of The Insurance Premiums Paid C. The Expired Portion Of The Insurance Premiums Paid D. The Unexpired Portion Of The Insurance Premiums Paid

40. An 8% $100,000 bond dated January 1, 2021 and maturing on December 31, 2030 was issued at 92. The bond will pay interest each June 30 and December 31 over the 10-year life of the bond. The total of the semiannual interest payments over the 10-year period will be $__________. The total amount of interest expense reported over the 10-year period will be $__________. A. $4,000 and $80000 B. $4,000 and $88,000 C. $8,000 and $80,000 D. $8,000 and $88,000