12.2   Questions 1) Variable costs of service departments are allocated to user departments using ________ cost rates instead of ________ cost rates. A) actual; budgeted B) budgeted; actual C) long-range; short-range D) short-range; long-range 2) Budgeted cost rates are used for allocating variable costs of service departments to user departments because ________. A) it protects user departments from intervening price fluctuations B) it protects user departments from inefficiencies in service departments C) it protects managers in producing departments from uncontrollable costs D) all of the above 3) The preferred guidelines for allocating service department costs to user departments include ________. […]

  1) Capital investments do not typically require large sums of money. 2) The process of making capital investment decisions is referred to as capital budgeting. 3) Self-check-in machines at airports are an example of capital assets. 4) Capital budgeting is done when common stock is issued. 5) Choosing among alternative capital investments is called a post-audit. 6) Post-audits of capital investments compare actual net cash inflows to projected net cash inflows. 7) The costs to develop a major website for a company would be considered to be a capital asset if those costs are significant and material (for example, […]

21.An account's tax line determines where QuickBooks lists the account balance on the:A.Income StatementB.Income Tax Summary ReportC.Balance SheetD.Statement of Cash Flows 22.QuickBooks allows you to import vendor, customer, and employee information from (Add People You Do Business With section of the QuickBooks Setup window):A.YahooB.OutlookC.GmailD.All of these 23.To customize QuickBooks after creating a company file you would:A.Enter additional company informationB.Set QuickBooks preferencesC.Customize the Chart of AccountsD.All of these 24.QuickBooks creates a Chart of Accounts for your company based on:A.Company addressB.Industry typeC.Your Federal ID Tax numberD.None of these 25.Which of the following type of information is not entered during the Easy Step […]

Chapter 7:Accounting for Foreign Currency Transactions and Derivatives Multiple Choice Topic: Accounting for Foreign Currency Transactions LO: 1 1.Which of the following best describes the effects of foreign currency fluctuations on the financial statements of companies with foreign currency-denominated assets and liabilities? a.Fluctuations in the $US value of foreign currency-denominated assets and liabilities affect both the balance sheet and the income statement. b. Fluctuations in the $US value of foreign currency-denominated assets and liabilities affect only the balance sheet and have no effect in net income. c.Fluctuations in the $US value of foreign currency-denominated assets and liabilities affect only stockholders’ […]

74) Luminous Electrical Inc. performed services costing $8,000 on January 24 and invoiced the customer. It received the $8,000 on January 31. Provide the journal entry on January 24 when services were rendered. (Ignore explanation.) 75) Luminous Electrical Inc. performed services costing $8,000 on January 24 and invoiced the customer. Luminous received the $8,000 on January 31. Provide the journal entry on January 31 when the cash was received. (Ignore explanation.) 76) Healthy Living, a diet magazine, collected $500,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, […]