64) If the overhead control account has a debit balance at the end of the period, A) overhead is overapplied and the difference should be credited to the proper accounts. B) overhead is overapplied and the difference should be debited to the proper accounts. C) overhead is underapplied and the difference should be debited to the proper accounts. D) overhead is underapplied and the difference should be credited to the proper accounts. 65) If the overhead control account has a credit balance at the end of the period, A) overhead is overapplied and the difference should be credited to the […]

  15) Alpha-Omega Industries has 30,000 shares of $12 par common stock and 15,000 shares of $50 par, 5% preferred stock outstanding. Total dividends available are $162,000. Compute the dividends to be distributed to preferred and common stockholders under the following condition.   The preferred stock is nonparticipating and cumulative with no dividends distributed last year.   16) Alpha-Omega Industries has 30,000 shares of $12 par common stock and 15,000 shares of $50 par, 5% preferred stock outstanding. Total dividends available are $162,000. Compute the dividends to be distributed to preferred and common stockholders under the following condition.   The […]

Hampton Company, a producer of computer disks, has the following information: Income tax rate 40 percent Selling price per unit $1.00 Variable cost per unit $0.60 Total fixed costs $36,000.00 36) What is the contribution margin per unit? A) 0.40 B) 0.60 C) 1.00 D) None of the above. 37) What is the contribution-margin ratio? A) 40 percent B) 60 percent C) 100 percent D) None of the above. 38) What is the break-even point in units? A) 36,000 B) 90,000 C) 60,000 D) 54,000 39) What is the break-even point in dollars? A) $54,000 B) $36,000 C) $90,000 D) […]

  17) The income/loss agreement was ignored when closing the income summary and all income was distributed evenly. This error would cause: A) the total owner's equity to be overstated. B) the total owner's equity to be understated. C) the total owner's equity to be unaffected. D) the ending assets to be overstated.   18) Applying the ratio based on investment method, compute Taylor and Timmy's share of net income if Taylor invested $200,000 and Timmy invested $800,000. Net income was $75,000. A) Taylor, $15,000; Timmy, $60,000 B) Taylor, $37,500; Timmy, $37,500 C) Taylor, $19,500; Timmy, $55,500 D) None of […]

  41) A company would rarely sell its stock for below par value. 42) A corporation is not required to pay dividends.   43) Shares of outstanding stock always equal the number of shares of authorized stock.   44) A common shareholder's right to purchase an equivalent percentage of new stock is his preemptive right.   45) A corporation shares its profits with stockholders in the form of dividends.   46) Cumulative preferred stock means that the preferred stockholders have a right to a certain dividend every year.   47) The two main sources of stockholders' equity are investments by […]