Posted: August 28th, 2016

Job order cost accounting systems can be used only for companies that manufacture a product.

The primary goal of managerial accounting is to provide information to:

The primary goal of managerial accounting is to provide information to:
a. creditors
b. management
c. investors
d. external auditors
On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be
a. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends
b. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends
c. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities
d. added to net income in converting the net income reported on the income statement to cash flows from operating activities
When a corporation issues bonds, it executes a contract with the bondholders, known as a bond debenture.
a. True
b. False
If the bonds are purchased between interest dates, the purchase price includes accrued interest since the last interest payment.
a. True
b. False
Loster Company reported a net loss of $14,089 for the year ended December 31, 2008. During the year, accounts receivable decreased ,731, merchandise inventory increased ,803, accounts payable increased by $13,479, and depreciation expense of $4,042 was recorded. What was the net cash used for or provided by operating activities during the year 2008?
Select the correct answer.
a. used net cash of $4,360.
b. used net cash of $14,089.
c. provided net cash of $4,360.
d. provided net cash of $14,089
Job order cost accounting systems can be used only for companies that manufacture a product.
a. True
b. False
Sinking Fund Income is reported in the income statement as
a. extraordinary
b. other income
c. gain on sinking fund transactions
d. income from operations
The payment of dividends is an example of a cost.
a. True
b. False
Period costs are
a. found on the balance sheet.
b. found on the job order cost sheets.
c. not involved in the production process.
d. classified as direct labor, direct material, or factory overhead.
Problem 19-10
The Stamping Department accepted Job 051507A on May 15th to make 1,000 funnels.
To complete the job they requisitioned 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set.
The cost driver that the Stamping Department uses is drop-forge strokes which are counted on a machine mounted counter. $2.25 is applied as overhead for each drop-forge stroke. Additionally $375.00 of overhead is applied to each job due to setup and teardown.