Excel in Accounting: Expert Assistance for Quizzes and Exams
22. Assume the figure to the right illustrates the market for orange juice. Suppose the government be...
Assume the figure to the right illustrates the market for orange juice. Suppose the government begins providing orange juice producers a $0.90 per pound subsidy. What will be the effects of this subsidy on the market for orange juice? Using the point drawing tool, indicate the pre-subsidy competitive market equilibrium Label this point 'e_1'. Using the line drawing tool, draw a new supply curve reflecting the subsidy. Label this line 'Supply_s'. Using the point drawing tool, indicate the market price and quantity with the subsidy Label this point 'e_2'. Carefully follow the instructions above and only draw the required objects
BE4 Manson Industries incurs unit costs of $8 ($5 variable and $3 ?xed) in making an assembly part for its ?nished product. A supplier offers to make 10,000 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no ?xed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.
BE7 Bryant Company has a factory machine with a book value of $90,000 and a remain-ing useful life of 5 years. It can be sold for $30,000. A new machine is available at a cost of $400,000. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $600,000 to $500,000. Prepare an analysis showing whether the old machine should be retained or replaced.
24. Exhibit 6-3 Unemployment categories CategoryWorkers Frictional unemployment250 Structural...
Exhibit 6-3 Unemployment categories
CategoryWorkers
Frictional unemployment250
Structural unemployment350
Cyclical unemployment600
Discouraged workers400
Underemployment450
73.According to data in Exhibit 6-3 and assuming the total number of workers is 8,400, the civilian labor force is:
a.7,550.
b.8,000.
c.8,400.
d.8,800.
e.9,250.
74.According to data in Exhibit 6-3 and assuming the total number of workers is 8,400, the unemployment rate is:
a.14 percent.
b.15 percent.
c.16 percent.
d.19 percent.
e.24 percent.
75.A person who has given up searching for work is called:
a.frictionally unemployed.c.a discouraged worker.
b.structurally unemployed.d.unemployed.
76.The number of people officially unemployed is not the same as the number of people who can't find a job because:
a.the armed forces is included.
b.some people have jobs but continue to look for a better one.
c.some people who can't find a job become discouraged and quit looking.
d.none of these.
77.The number of people officially unemployed is not the same as the number of people who can't find a job because:
a.people who have jobs continue to look for better ones.
b.the armed forces is included.
c.discouraged workers are not counted.
d.none of the above.
78.Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is:
a.counted as part of the labor force.
b.considered frictionally unemployed.
c.an underemployed worker.
d.not counted as part of the labor force.
e.considered as productively active.
79.John Steinbeck’s Cannery Row describes a character who takes his own life because of poor job prospects. If he was an unemployed person who gave up looking for work, he would be considered:
a.chronically unemployed.c.a member of the labor force.
b.a discouraged worker.d.frictionally unemployed.
80.Elisa Kilhafer, a housewife in St. Louis, Missouri, who claims on a Bureau of Labor Statistics (BLS) survey that she is neither gainfully employed nor looking for work, is, according to the BLS,
a.considered retired.
b.counted as unemployed.
c.considered reemployable.
d.counted as a member of the labor force.
e.not counted as a member of the labor force.
81.Andrea Burris lost her job in a company layoff 5 months ago. She would take a job if one was offered, but she has given up looking for work until the economy improves. She is:
a.a member of the civilian labor force who is employed.
b.a member of the civilian labor force who is unemployed.
c.a member of the civilian labor force who is underemployed.
d.a discouraged worker who is not a member of the labor force.
e.now structurally unemployable.
82.The presence of discouraged workers may cause:
a.the employment rate to be overstated.
b.the employment rate to be understated.
c.the unemployment rate to be overstated.
d.the unemployment rate to be understated.
e.GDP to be too large.
31) All of the following are benefits of using computerized or Web-based performance appraisal systems EXCEPT ________.
A) merging examples with performance ratings
B) helping managers maintain computerized notes
C) combining different performance appraisal tools
D) enabling managers to monitor employees' computers
32) Which of the following enables supervisors to oversee the amount of computerized data an employee is processing each day?
A) computerized performance appraisal system
B) online management assessment center
C) digitized high-performance work center
D) electronic performance monitoring system
33) Nick supervises a team of data entry specialists. Lately, productivity has been down, and Nick believes his subordinates are not working as efficiently as possible. Which of the following tools would provide Nick with daily information about each employee's rate, accuracy, and time spent entering data?
A) digital dashboard device
B) electronic performance monitoring system
C) Web-based management oversight device
D) electronic performance support system
34) Graphic rating scales are subject to all of the following problems EXCEPT ________.
A) unclear standards
B) halo effects
C) complexity
D) leniency
35) Which of the following terms refers to an appraisal that is too open to interpretation?
A) unclear standards
B) halo effects
C) leniency
D) biased
36) Which of the following is the best way for a supervisor to correct a performance appraisal problem caused by unclear standards?
A) focusing on performance instead of personality traits
B) using graphic rating scales to rank employees
C) using descriptive phrases to illustrate traits
D) allowing employees to rate themselves first
37) Which of the following is a performance appraisal problem that occurs when a supervisor's rating of a subordinate on one trait biases the rating of that person on other traits?
A) recency effect
B) halo effect
C) central tendency
D) stereotyping
38) Jason is a conscientious employee, but he is viewed by most of his co-workers as unfriendly. Jason's supervisor rates him low on the traits "gets along well with others" and "quality of work." Which of the following problems has most likely affected Jason's performance appraisal?
A) central tendency
B) leniency
C) halo effect
D) recency effect
39) A supervisor who frequently rates all employees as average on performance appraisals most likely has a problem known as ________.
A) halo effect
B) stereotyping
C) central tendency
D) leniency
40) The best way to reduce the problem of central tendency in performance appraisals is to ________.
A) rank employees
B) use graphic rating scales
C) limit the number of appraisals
D) appraise personal characteristics
26. 11. In this age of high technology and computer based information systems, why are accountants...
11. In
this age of high technology and computer based information systems, why are
accountants concerned about physical (human) controls?
12. Discuss
the advisory services that external auditors are no longer permitted to render
to audit clients under SOX legislation.
13. Internal
control in a computerized environment can be divided into two broad categories.
What are they? Explain each.
14. Define the management assertions of:
existence or occurrence, completeness, rights and obligations, valuation or
allocation, presentation and disclosure.
27. Knudsen Corporation was organized on January 1, 2016. During its first year, the corporation issu...
Knudsen Corporation was organized on January 1, 2016. During its first year, the corporation issued 2, 050 shares of $50 par value preferred stock and 100,00 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2016, $6, 075, 2017, $13, 900; and 2018, $28,000 Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative.
Siberian Ski Company recently expanded its manufacturing capacity, which will allow it to produce up to 15,000 pairs of cross-country skis of the mountaineering model or the touring model. The sales department assures management that it can sell between 9,000 and 13,000 pairs of either product this year. Because the models are very similar, Siberian Ski will produce only one of the two models. The following information was compiled by the accounting department: Fixed costs will total $369,600 if the mountaineering model is produced but will be only $316,800 if the touring model is produced. Siberian Ski is subject to a 40 percent income tax rate. Required: 1. If Siberian Ski Company desires an after-tax net income of $24,000, how many pairs of touring model skis will the company have to sell? 2. Suppose that Siberian Ski Company decided to produce only one model of skis. What is the total sales revenue at which Siberian Ski Company would make the same profit or loss regardless of the ski model it decided to produce? 3. If the sales department could guarantee the annual sale of 12,000 pairs of either model, which model would the company produce, and why?
29. Jan’s Dance Studio, Inc., performs adjusting entries every month, but closes its accounts only at...
Jan’s Dance Studio, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The studio’s year-end adjusted trial balance dated December 31, 2011, appears below. (Bear in mind, the balance shown for Retained Earnings was last updated on December 31, 2010.)
JAN’S DANCE STUDIO, INC. ADJUSTED TRIAL BALANCE DECEMBER 31, 2011
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $171,100 |
| |
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,400 | ||
Prepaid studio rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000 | ||
Unexpired insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,200 | ||
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500 | ||
Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18,000 | ||
Accumulated depreciation: equipment . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| $ 7,200 |
Notes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 10,000 |
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 3,200 |
Salaries payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 4,000 |
Income taxes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 6,000 |
Unearned studio revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 8,800 |
Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 100,000 |
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 40,000 |
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000 |
|
|
Studio revenue earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 165,000 |
Salary expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 85,000 |
|
|
Supply expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,900 |
|
|
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,000 |
|
|
Insurance expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,900 |
|
|
Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500 |
|
|
Depreciation expense: equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800 |
|
|
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 900 |
|
|
Income taxes expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 23,000 |
|
|
| $344,200 |
| $344,200 |
Instructions
a. Prepare an income statement and statement of retained earnings for the year ended December 31, 2011. Also prepare the studio’s balance sheet dated December 31, 2011.
b. Prepare the necessary closing entries at December 31, 2011.
c. Prepare an after-closing trial balance dated December 31, 2011.