88.Which of the following correctly describes the recording of a dividend declaration by a company's board of directors?   A. A debit to retained earnings and a credit to cash. B. A debit to additional paid-in capital and a credit to dividends payable. C. A debit to cash and a credit to retained earnings. D. A debit to retained earnings and a credit to dividends payable. 89.Superior has provided the following information for its recent year of operation: The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000. The additional paid-in capital account balance increased $2,500 […]

6) Under just-in-time costing, the purchase of raw materials is recorded by debiting the Raw Materials Inventory account. 7) A just-in-time costing system does not use the Finished Goods Inventory account; instead, it combines the Finished Goods Inventory account with the Work-in-Process Inventory account. 8) Under the just-in-time costing system, underallocated and overallocated conversion costs are treated just like underallocated and overallocated manufacturing overhead. 9) Just-in-time costing is also known as ________. A) job costing B) batch costing C) backflush costing D) process costing 10) ________ in just-in-time management systems is completed in self-contained work cells. A) Selling B) Production […]

43.Trend Decorations Company provides decorating services for store displays. Trend sold equipment that it had been using to create decorations. Of the following choices, which will Trend report on its income statement when it sells the equipment? A. Operating revenue: Sales revenue B. Operating expenses: Loss on disposal of equipment C. Other items: Loss on sale of equipment D. General and administrative expenses: Sale of decorating equipment 44.Which of the following best describes operating revenues? A. They are increases in assets or increases in liabilities as a result of peripheral transactions. B. They are decreases in assets or decreases in […]

39.Flyer Company has provided the following information prior to any year-end bad debt adjustment: • Cash sales, $150,000 • Credit sales, $450,000 • Selling and administrative expenses, $110,000 • Sales returns and allowances, $30,000 • Gross profit, $490,000 • Accounts receivable, $110,000 • Sales discounts, $14,000 • Allowance for doubtful accounts credit balance, $1,200 Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?  A. $7,950. B. $6,750. C. $5,550. D. $7,800. 40.Which of the following is correct when […]

91) Andrea died with an unused capital loss carryover of $3,300. The carryover A) may be carried back three years. B) will be fully used on Andrea's final income tax return. C) will be inherited by Andrea's heirs. D) expires with death. 92) This year, Lauren sold several shares of stock held for investment. The following is a summary of her capital transactions for the year: Acquired Sold This Year Selling Price Cost 09/25/2013 12/15   $800 $1,000 02/15/2013 07/15 2,200 1,750 06/25/2007 08/01 3,500 2,300 12/28/2009 06/15 750 900 What are the amounts of Lauren's capital gains (losses) for […]