14-08Ex_5e_s

Survey of Accounting (Available Titles Cengagenow)

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Exercise 14-8 Name: Section: Score: 6% *Since some answer boxes are correct when left blank, the beginning score is greater than 0%. Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. b. TRANS-CONTINENTAL AIRLINES, INC. Divisional Income Statements For the Year Ended June 30, 2010 Passenger Division Cargo Division Revenues Operating expenses Income from operations before service department charges Less service department charges: Training Flight scheduling Reservations Income from operations Instructions
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Exercise 14-8 Name: SOLUTION Section: Score: See student sheet for student's score Scoring: ON *Since some answer boxes are correct when left blank, the beginning score is greater than 0%. Answers are entered in the cells with gray backgrounds.
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Unformatted text preview: Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. b. TRANS-CONTINENTAL AIRLINES, INC. Divisional Income Statements For the Year Ended June 30, 2010 Passenger Division Cargo Division Revenues $1,400,000 $1,400,000 Operating expenses 950,000 1,200,000 Income from operations before service department charges $450,000 $200,000 Less service department charges: Training $128,000 $32,000 Flight scheduling 62,500 87,500 Reservations 210,000 400,500 0 119,500 Income from operations $49,500 $80,500 Instructions Because service department charges are inappropriately based on revenue, the reported division income does not adequately measure performance....
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14-08Ex_5e_s - Cells with non-gray backgrounds are...

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