(CHAPTER 10 )Interest is not capitalized for:
produced in large
The income statement reports changes in fair value for which
type of securities?
Which category completely excludes equit
What is the expense that Holyoak should report for its promotional rebates in its
2011 income statement?
What is the rebate promotion liability that Holyoak should report in its
December 31, 2011 balance sheet?
In the current
Archie Co. purchased a framing machine for $45,000 on January 1, 2011. The
machine is expected to have a four-year life, with a residual value of $5,000 at the
end of four years. Using the double-declining balance method, depreciation for
A common type of preference _
is to give the preferred stockholders a prior claim on earnings. The corporation thus assures them
a dividend, usually at a stated rate, before it distributes any amount to the common stockholders.
In return for this
Anyone who wishes to establish a corporation must _
submit articles of incorporation to the state in which incorporatino is desired. After fulfilling the
requirements, thee state issues a corporation charter, thereby recognizing the company as a l
Review Quiz 2-Acct 2301
1. Accounts are records of increases and decreases in individual financial statement items
2. Which of the following is a true statement of a T account:
Left hand side of T account is called a debit side-True
3. Which of the follow
Process (Jobs 102 & 103) for the costs accumulated to date. Also note, the beginning balances in the
other balance sheet accounts.
Estimated Overhead f
Estimated Direct Labo
During January the comapny had the following transactions:
ACCT 2301: PRINCIPLES OF ACCOUNTING I - FINANCIAL
Ardra Y. Alexander
Synonym and Section: 44719-001
Lecture: MW 6:00 pm 7:20 pm, RRC Room 2226.00
Lab: W 7:30 pm 8:20 pm, RRC Room 2330.16
Credits: 3; Lecture Hours: 3 and Lab
Ch. 5 AAAAC
1.) Revenue account for merchandising businesses = SALES
2.) Term applied to the excess of net revenue from sales over the cost of merchandise sold = GROSS
3.) Merchandise held for sale in the normal course of business = INVENTORY
Handout 6-1 (LOs1, 2 and 3)
Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400 and monthly fixed costs
Compute the break-even point in units and in total sales dollars.
Compute the contribution mar
ACCT 2302 Managerial Accounting
Chapter 7 Handouts
Handout 7-1 (LOs 1 and 2)
1. Which of the following costs will not be relevant to the decision of whether to buy a new car or keep
the old one?
a. The fuel cost of new car.
b. Maintenance costs of old car
ACCT 2302 Spring 2014 Chapter 1 Handouts
Handout 1-1 (LO1)
Enter the letter (X) next to the descriptions under the column for either managerial
accounting or financial accounting.
A.Primarily used by internal parties
ACCT 2302 Ch 8 Handout with solutions
Handout 8-1 (LO 1)
Which of the following statements is (are) false?
An important part of the organizing process is the creation of a budget.
Directing/leading, involves all actions managers must take to imp
Handout 5-1 (LO1)
Answer as True or False. If the answer is False, change the statement to make it True.
a. _ Fixed cost per unit is constant as activity increases.
b. _ Total variable cost increases as activity increases.
c. _ Total fixed cost does no
650000 1000000 500000 2150000
(Cash + Accounts Receivable)/ Current Liabilities
Current Liabilities= Accounts Payable + Accrued Inventory Liabilities + Accrued compensation
and related expenses + Gift Card Liability + Income Tax Payable + Other Liabilities
698,649 + 1
Explain "to thwart takeover attempts or to reduce the number of stockholders".
Reducing the number of shares held be the public increases the control of existing owners and
stops "outsiders" from gaining control or significant influence. Companies
If a company cannot readily determine either the fair value of the stock it issues
or the property or services it receives, _. Depending on data available,
it should employ an appropriate valuation technique; the valuation may be based on market
In a statement of cash flows using the indirect method, an increase in availablefor-sale securities not due to an increase in their fair value should be reported as:
C. A net cash outflow from investing activity.
In the statement of cash flows
Knique Shoes issued a $100,000, 8-month, "noninterest-bearing note." The loan
was made by Second Commercial Bank whose stated "discount rate" is 9%. The
effective interest rate on this loan (rounded) is:
Oklahoma Oil Corp. paid interest of
The most common type of liability is:
D. One to be paid in cash and for which the amount and timing are known.
Which of the following is not a characteristic of a liability?
B. It must be payable in cash.
Which of the following is the best definiti
Slotnick Chemical received customer deposits on returnable containers in the
amount of $300,000 during 2011. Fifteen percent of the containers were not
returned. The deposits are based on the container cost marked up 20%. How
much profit did Slotni
On January 1, 2011, G Corporation agreed to grant its employees two weeks
vacation each year, with the stipulation that vacations earned each year can be
taken the following year. For the year ended December 31, 2011, G's employees
each earned an a
Providing a monetary rebate program for purchasing a product:
D. All of the above are correct.
The main difference between accounting for rebate and cash discount coupons is:
C. The expense for the latter is usually deferred until redemption of the
Panther Co. had a warranty liability of $350,000 at the beginning of 2011, and
$310,000 at end of 2011. Warranty expense is based on 4% of sales, which were
$50 million for the year. What were the warranty expenditures for 2011?
The accounting concept that requires recognition of a liability for customer
premium offers is
D. The matching principle.
Accounting for costs of incentive programs for frequent customer purchases
A. Recording an expense and a liability e
Property, plant, and equipment and intangible assets are:
Long-term revenue-producing assets.
The factors that need to be determined to compute depreciation are an asset's:
Cost, residual value, and service life.
Assets acquired in a lump-sum p
Which of the following does not pertain to accounting for asset retirement
All of the these pertain to accounting for asset retirement obligations
Cutter Enterprises purchased equipment for $72,000 on January 1, 2011. The