Crush Your Accounting Assignments: Proven Strategies
18. Problem 9-2A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. A...
Problem 9-2A Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 Sales budget: Anticipated volume in units 404,900 201,000 Unit selling price $22 $28 Production budget: 29,800 19,900 Desired ending finished goods units 32,200 11,500 Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) 32,100 18,400 Desired ending direct materials pounds Beginning direct materials pounds 43,100 14,300 Cost per pound $3 $4 Direct labor budget: Direct labor time per unit 0.6 0.4 Direct labor rate per hour $11 $11 Budgeted income statement: Total unit cost $12 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $665,000 for product JB 50 and $361,000 for product JB 60, and administrative expenses of $543,000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.
19. Vinod Transport company purchased 10 Trucks at Rs.90,000 each on 1stApril2005. On 1st October 2007..
Vinod Transport company purchased 10 Trucks at Rs.90,000 each on 1stApril2005. On 1st October 2007 one of the Trucks is involved in an accident and iscompletely destroyed. Rs.56,200 is received from the insurance company in fullsettlement. On the same date another truck is purchased by the company for thesum of Rs.1,00,000. The company writes off 20% perannum on the dimnishingbalance method. The company maintains the calendaryear as its financial year.Show the Truck Account for four years ending 31st December 2008.
20. Which of the following is true regarding optional benefits with long term care policies? They are...
Which of the following is true regarding optional benefits with long term care policies? They are available for an additional premium When an insured purchased her disability income policy she misstated her age to the agent. She told the agent that she was 30 years old when in fact she was 37. If the policy contains the optional misstatement of age provision _____________. Amounts payable under the policy will reflect the insurers correct age An insured loses her left arm in an accident that is covered by her Accidental Death and Dismemberment policy. What kind of benefit will she most likely receive from this policy? The capital amount in a lump sum In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party? Insurer to the insured Which if the following would be an example of a limited accident and health insurance policy? A dread disease policy An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point? Neither approved the application or issued the policy Insurers may change which is the following in a guaranteed renewable health insurance policy? Rates by class Disability income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. In this case, totally disability is defined as _________________. Any occupation - more restrictive than other definitions A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is know man as ___________. Usual, customary and reasonable Which of the following statements about occupational vs non occupational coverage is true? Disability insurance can be written as occupational or non occupational Under workers compensation, which of the following benefits are not included? Legal Benefits Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policy owner? Payment of Claims Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage? No, the group must be formed for a purpose other than obtaining group insurance. All of the following are correct about the required provisions of a health insurance policy except _____________. A reinstated policy provide immediate coverage for an illness A guaranteed renewable disability insurance policy _______________. Is renewable at the insured's option to a specified age In a replacement situation, all of the following must be considered except ____________. Assets Your client wants to know what the tax implications are for contributions to a Health Savings Account. You should advise her that the contributions are ____________. Tax Deductible A producer is required to remit premiums from a trust account to the insurer within _______ of receipt. 45 days When eating a small employer group, small employer carriers may use all of the following factors except _________. Gender Of the required 50 hours of pre-licensing education, applicant must complete a minimum of ________ on the subject of ethics. 3 hours What is the maximum civil penalty per violation if an unauthorized entity violates the Commissioners cease and desist order? $25,000 Which of the following best describes the "first dollar coverage" principle in basic medical insurance? The insured is not required to pay a deductible Which if the following is NOT true regarding partial disability? This is a form of insurance that covers part time workers An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary? Revocable Which if the following riders would NOT increase the premium for a policy owner? Impairment rider In reference to the standard Medicare supp benefits plans, what does the term standard mean? All providers will have the same coverage options and conditions for each plan An insurer has made all decisions regarding the provisions included in the insured policy. The insured finds an objectionable provision and wants to negotiate it but isn't allowed to. Her only option is to accept policy as is or reject it. Which contract feature does this describe? Adhesion Todd has been informed that he has a hernia that requires repair. When Todd researches costs, he learns that his insurance plan will cover 200 points. What system is odds insurance company using? Relative Value Which of the following is not the consideration in a policy? The application given to a prospective insured. Under the ACA, which classification applies to health plans based on the amount of covered costs? Metal Level Classification The regulation of the insurance industry is primarily rests with ________.
The state Which of the following is a required provision for group accident and health policies? Terminated employees may continue coverage in the group for up to 18 months
An insurer may adopt standards and criteria for eligibility to be applied to home health services programs and hospice care programs consistent with standards established by the ____________. Department of Public Health and Environment A Medicare supp policy may exclude coverage based on _________. Pre existing condition A producer is subject to criminal prosecution in another jurisdiction. Within what time frame must the producer report this fact to the commissioner? Within 30 days after the initial pre-trial hearing
According to the PPACA rules, what percentage of health care costs will be covered under a bronze plan? 60% According to the PPACA metal levels classification, if a health plan is expectedd to cover 90% if the costs for an average population, and the participants would cover 10%, what type of plan is that? Platinum An unlicensed assistant works full time in an insurance agency. She may perform all of the following activities EXCEPT ________. Collect premium for an in force policy
21. Cost behavior refers to
Multiple Choice
Cost behavior refers to
a. how costs react to a change in the level of activity
b. whether a cost is incurred in a manufacturing, merchandising, or service company
c. classifying costs as either inventoriable or period costs
d. whether a particular expense has been ethically incurred
22. Record deferred revenues (LO8–4) BE8–6 On December 18, Intel receives $260,000 from a customer...
Record deferred revenues (LO8–4)
BE8–6 On December 18, Intel receives $260,000 from a customer toward a cash sale of $2.6 million for
computer chips to be completed on January 23. The computer chips had a total production cost of $1.6
million. What journal entries should Intel record on December 18 and January 23? Assume Intel uses the
perpetual inventory system.
23. Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purcha...
Hey can someone please complete the rest of this problem, I will rate. Thanks! Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a cost of $117,000. Over its 4-year useful life, the bus is expected to be driven 210,000 miles. Salvage value is expected to be $7, 800. Compute the depreciation cost per unit. Prepare a depreciation schedule assuming actual mileage was: 2017, 46, 800; 2018, 60, 840; 2019, 47, 970; and 2020, 31, 590.
24. 1. When preparing a worksheet for a merchandising inventory system, the cost of goods sold can be...
1. When preparing a worksheet for a merchandising inventory system, the cost of goods sold can be derived from the balances of several accounts in the Income Statement columns. 2. Under the perpetual inventory system, the ending nerchandise inventory balance is closed at the same time as Cost of Goods Sold. 3. When preparing a worksheet for a merchandising entity that uses the periodic inventory system, the merchandise inventory amount shown on the trial balance will be carried over to the Balance Sheet debit column. 4. On the worksheet of a merchandising entity that uses the periodic inventory system, both Purchases and Purchases Returns and Allowances appear in the Income Statement columns. 5. The Purchases account is closed to the Merchandise Inventory account. 6. The ending inventory amount appears in both Income Statement columns on the worksheet of a merchandising entity that uses the periodic inventory system. 7. Under the periodic inventory system, the Merchandise Inventory account appears in the closing entries made at the end of the period. 8. When preparing closing entries under the periodic inventory system, Sales and Purchases Returns and Allowances are both closed in the same entry. 9. Sales Discounts is a contra-revenue account with a normal credit balance. 10. Purchases Discounts would be recorded as a credit.
25. 171.Zippy had cash inflows from operations $60,500; cash outflows from investing activities of...
171.Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:
A.$38,500 increase.
B.$38,500 decrease.
C.$132,500 decrease.
D.$132,000 increase.
E.$11,500 decrease.
172.Zapper has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is:
A.$223,000.
B.$240,000.
C.$268,000.
D.$274,000.
E.$208,000.
173.Cragmont has beginning equity of $277,000, net income of $63,000, withdrawals of $25,000 and no additional investments by owners during the period. Its ending equity is:
A.$365,000.
B.$239,000.
C.$189,000.
D.$315,000.
E.$277,000.
174.Rent expense appears on which of the following statements?
A.Balance sheet.
B.Income statement.
C.Statement of owner's equity.
D.Statement of periodic expenses.
E.Statement of cash flows only.
175.A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of owner's equity?
A.$17,000.
B.$29,000.
C.$71,000.
D.$88,000.
E.$105,000.
176.A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?
A.$45,000.
B.$92,000.
C.$98,000.
D.$210,000.
E.$282,000.
177.Flitter reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities. By the end of the year, assets had increased to $300,000 and liabilities were $75,000. Calculate its return on assets:
A.8.8%
B.7.0%
C.5.8%
D.35.0%
E.23.3%
178.Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the beginning of the year were $400,000. At the end of the year assets were worth $450,000. Calculate its return on assets.
A.7.1%
B.7.5%
C.6.7%
D.20.0%
E.18.8%
179.Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.
A.$61,000 increase.
B.$37,000 increase.
C.$7,000 decrease.
D.$7,000 increase.
E.$34,000 decrease.
180.Charlie's Chocolates' owner made investments of $50,000 and withdrawals of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.
A.$30,000.
B.$83,000.
C.$64,000.
D.$19,000.
E.$49,000