Quiz Facts 2, Business - Accounting And Taxation

Free

When selecting the high and low observations under the high-low method of analyzing mixed costs, the selection should be based on the dependent variable (cost).

2

Free

Business transactions and events are the starting points of financial statements.

3

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A(n) ______________________________ is designed to collect, process, and report information related to financial transactions.

4

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Committed fixed costs represent organizational investments with a one-year planning horizon.

5

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Which of the following is true of a company that uses absorption costing?

6

Bronco High School issues $10 million in bonds on January 1, 2021 that pay interest semi-annually on June 30 and December 31. A portion of the bond amortization schedule appears below:DateCash PaidInterest ExpenseIncrease in Carrying ValueCarrying Value01/01/2021 $8,800,000 06/30/2021$400,000 $440,000 $40,000 8,840,000 12/31/2021 400,000 442,000 42,000 8,882,000 What is the market annual interest rate?

7

The following symbol represents a computer process. <img src="https://quizgoat.com/files/4/ppg__cognero__Chapter_04__media__985728a8-761c-4067-86c2-9829f0eb4dfb.JPEG" />

8

Ingol, Inc. was organized on June 1 and began business on September 13. Ingol elected a calendar year for tax purposes. The corporation incurred $60,300 of legal and other professional fees attributable to its formation. How much of these costs can Ingol deduct on its first tax return?

9

On June 10, Year 1, Burton Builders, Inc., a publicly traded company, announced that it had been awarded a contract to build a football stadium at a contract price of $500 million. This contract would increase its projected revenues by 20% over the next three years. Which of the following statements is correct with regard to this announcement?

10

The F. Mercury, Capital account has a credit balance of $39,000 before closing entries are made. Total revenues for the period are $57,200, total expenses are $40,800, and withdrawals are $9800. What is the correct closing entry for the expense accounts?

11

The adoption credit is only available for domestic adoptions.

12

Stallbaumer Incorporated makes a single product--an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:Total budgeted manufacturing overhead$438,360Budgeted hours39,000 labor-hoursActual production (a)35,000 unitsStandard hours per unit (b)1.30 labor-hoursStandard hours allowed for the actual production (a) × (b)45,500 labor-hoursTotal actual manufacturing overhead$439,170Actual hours47,500 labor-hoursRequired:Determine whether overhead was underapplied or overapplied for the year and by how much.

13

Koczela Inc. has provided the following data for the month of May:Inventories: BeginningEndingWork in process$17,000$12,000Finished goods$46,000$50,000 Additional information: Direct materials$57,000Direct labor cost$87,000Manufacturing overhead cost incurred$63,000Manufacturing overhead cost applied to Work in Process$61,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.The cost of goods manufactured for May is:

14

The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable$435,000DebitAllowance for Doubtful Accounts 1,250DebitNet Sales 2,100,000CreditAll sales are made on credit. Based on past experience, the company estimates 1% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

15

A company is considering the purchase of new equipment for $42,000. The projected annual cash inflow is $18,000. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 12% return on investment. The present value of an annuity of $1 for various periods follows: PeriodPresent value of an annuity of 1 at 12%1 0.892921.690132.4018What is the net present value of this machine assuming all cash flows occur at year-end?

16

If the calculation of cash flows from operating activities starts with net income, the company:

17

Randal Corporation recorded the following activity for the year just ended:Proceeds from sale of property$ 300,000Cash received from customers$ 120,000Issuance of common stock$ 180,000Issuance of bonds payable$ 500,000Dividends paid to stockholders$ 130,000Purchase of equipment$ 400,000The net cash provided by (used in) financing activities for the year was:

18

Held-to-maturity securities are:

19

The going concern assumption:

20

The ______________________________ command is first usedto generate the structure of the relation.

21

Loretta is the sole shareholder of Country Collectibles, a calendar year S corporation. Although Loretta spends at least 40 hours per week supervising Country Collectible's employees, she has never drawn a salary from the business. Country Collectibles has been in existence for five years and has earned a profit every year. Loretta withdraws $100,000 cash from the S corporation each year. As a result of an audit, the IRS asserts that $75,000 of the cash withdrawal should be considered a salary payment to Loretta. What are the payroll tax consequences of this recharacterization?

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Quiz Facts 2, Business - Accounting And Taxation

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