Q&A Hero

Q: A $15 credit to Sales was posted as a $150 credit. By what amount is Sales in error? A.$150 understated. B.$135 overstated. C.$150 overstated. D.$15 understated. E.$135 understated.

Q: On January 1, 2012, Packaging International purchased 90% of Shipaway Corporation's outstanding shares for $135,000 when the fair value of Shipaway's net assets were equal to the book values. The balance sheets of Packaging and Shipaway Corporations at year-end 2011 are summarized as follows: Packaging Shipaway Assets $590,000 $180,000 Liabilities $70,000 $30,000 Capital stock 360,000 90,000 Retained earnings 160,000 60,000 If a consolidated balance sheet was prepared immediately after the business combination, the noncontrolling interest would be A) $9,000. B) $13,500. C) $15,000. D) $16,667.

Q: While in the process of posting from the journal to the ledger a company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that: A.The Office Supplies account balance will be overstated. B.The trial balance will not balance. C.The error will overstate the debits listed in the journal. D.The total debits in the trial balance will be larger than the total credits. E.All of these effects will be caused by the error.

Q: The unamortized excess account is A) a contra-equity account. B) used in allocating the amounts paid for recorded balance sheet accounts that are above or below their fair values. C) used in allocating the amounts paid for each asset and liability that are above or below their book values, especially when numerous assets or liabilities are involved. D) the excess purchase cost that is attributable to goodwill.

Q: The labor market in professional baseball is an example ofA) a bilateral monopoly. B) a monopsonistic labor market.C) a monopolistic labor market. D) a perfectly competitive labor market.

Q: Which of the following statements is true? A.If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions. B.The trial balance is a book of original entry. C.Another name for the trial balance is the chart of accounts. D.The trial balance is a list of all accounts from the ledger with their balances at a point in time. E.The trial balance is another name for the balance sheet as long as debits balance with credits.

Q: A newly acquired subsidiary had pre-existing goodwill on its books. The parent company's consolidated balance sheet will A) not show any value for the subsidiary's pre-existing goodwill. B) treat the goodwill similarly to other intangible assets of the acquired company. C) not show any value for the pre-existing goodwill unless all other assets of the subsidiary are stated at their full fair value. D) always show the pre-existing goodwill of the subsidiary at its book value.

Q: Deregulation has contributed toA) an increase in union membership. B) declines in union membership.C) higher wages in unions. D) an increase in union power.

Q: A report that lists accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n): A.Account balance. B.Trial balance. C.Ledger. D.Chart of accounts. E.General Journal.

Q: Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week.If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information, thereA) is diminishing marginal product. B) are too many workers.C) are not enough workers. D) is increasing marginal product.

Q: Perth Corporation acquired a 100% interest in Sansone Company for $1,600,000 when Sansone had no liabilities. The book values and fair values of Sansone's assets were Book Value Fair Value Current assets $350,000 $400,000 Equipment 150,000 210,000 Land & buildings 570,000 590,000 Total assets $1,070,000 $1,200,000 Immediately following the acquisition, equipment will be included on the consolidated balance sheet at A) $150,000. B) $200,000. C) $210,000. D) $280,000.

Q: An accountant has debited an account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction: A.Credit another asset account for $1,500. B.Credit another liability account for $1,500. C.Credit an expense account for $1,500. D.Credit the owner's capital account for $1,500. E.Debit another asset account for $1,500.

Q: The total cost of federal regulation includesA) the funding of government agencies overseeing compliance, the compliance cost for the regulated firms, and the opportunity cost of regulation for the firms.B) the funding of government agencies overseeing compliance less the compliance cost for the regulated firms and the opportunity cost of regulation for the firms.C) only the cost of compliance by the regulated firms.D) only the funding of the regulatory agencies.

Q: On June 1, 2011, Puell Company acquired 100% of the stock of Sorrell Inc. On this date, Puell had Retained Earnings of $100,000 and Sorrell had Retained Earnings of $50,000. On December 31, 2011, Puell had Retained Earnings of $120,000 and Sorrell had Retained Earnings of $60,000. The amount of Retained Earnings that appeared in the December 31, 2011 consolidated balance sheet was A) $120,000. B) $130,000. C) $170,000. D) $180,000.

Q: A company had the following accounts and balances year-end: If all of the accounts have normal balances, what are the totals for the trial balance? A.$ 45,200. B.$ 67,000. C.$104,800. D.$209,600. E.$186,600.

Q: By reducing the product compatibility of iPod, Apple can lower the price elasticities of demand forA) Apple products that are complementary to the iPod. B) Apple products that are substitutable to the iPod.C) products by other firms that have a positive network effects. D) products that are not related to the iPod.

Q: Subsequent to an acquisition, the parent company and consolidated financial statement amounts would not be the same for A) investments in unconsolidated subsidiaries. B) investments in consolidated subsidiaries. C) capital stock. D) ending retained earnings.

Q: A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n): A.Account. B.Trial balance. C.Journal. D.T-account. E.Balance column account.

Q: Pregler Inc. has 70% ownership of Sach Company, but should exclude Sach from its consolidated financial statements if A) Sach is in a regulated industry. B) Pregler uses the equity method for Sach. C) Sach is in legal reorganization. D) Sach is in a foreign country and records its books in a foreign currency.

Q: In an oligopolistic market, each firmA) has a constant marginal cost.B) faces a perfectly elastic demand function.C) must consider the reaction of rival firms when making a pricing or output decision. D) produces at minimum average cost in the long run.

Q: A general journal is: A.A ledger in which amounts are posted from a balance column account. B.Not required if T-accounts are used. C.A complete record of any transaction and the place from which transaction amounts are posted to the ledger accounts. D.Not necessary in electronic accounting systems. E.A book of final entry because financial statements are prepared from it.

Q: A subsidiary can be excluded from consolidation if A) control does not rest with the majority owner. B) the subsidiary is in legal reorganization. C) the subsidiary is operating under severe foreign-exchange restrictions. D) All of the above are correct.

Q: A monopolistic competitor would face a demand curve with aA) positive slope. B) negative slope.C) constant slope. D) slope equal to 0.

Q: A balance column ledger account is: A.An account entered on the balance sheet. B.An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted. C.Another name for the withdrawals account. D.An account used to record the transfers of assets from a business to its owner. E.A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.

Q: Panini Corporation owns 85% of the outstanding voting stock of Strathmore Company and Malone Corporation owns the remaining 15% of Strathmore's voting stock. On the consolidated financial statements of Panini Corporation and Strathmore, Malone is A) an affiliate. B) a noncontrolling interest. C) an equity investee. D) a related party.

Q: PQTC$1310$15$1214$25$1119$45$1025$75$930$115$835$165Refer to the above table. Given the demand and cost schedules, what are the maximum economic profits for this monopolist?A) $155 B) $143 C) $175 D) $164

Q: The general journal provides a place for recording: A.The transaction date. B.The names of the accounts involved. C.The amount of each debit and credit. D.An explanation of the transaction. E.All of these.

Q: From the standpoint of accounting theory, which of the following statements is the best justification for the preparation of consolidated financial statements? A) In substance the companies are separate, but in form the companies are one entity. B) In substance the companies are one entity, but in form they are separate. C) In substance and form the companies are one entity. D) In substance and form the companies are separate entities.

Q: When a perfectly competitive firm experiences zero economic profits, A) the high barriers to entry prevent further competition.B) existing firms exit the industry.C) additional firms enter the industry.D) firms have no incentive to exit or enter the industry.

Q: The record in which transactions are first recorded is the: A.Account balance. B.Ledger. C.Journal. D.Trial balance. E.Cash account.

Q: What method must be used if FASB Statement No. 94 prohibits full consolidation of a 70% owned subsidiary? A) The cost method B) The Liquidation value C) Market value D) Equity method

Q: Which is always true at a firmʹs profit -maximizing rate of production?A) Total Revenue = Total CostsB) The total revenue curve lies below the total cost curve.C) Marginal Revenue > Marginal CostD) Marginal Revenue = Marginal Cost

Q: A column in journals and ledger accounts used to cross reference journal and ledger entries is the: A.Account balance column. B.Debit column. C.Posting reference column. D.Credit column. E.Description column.

Q: Marginal cost is equal to average variable costA) when average variable cost is at its minimum value.B) when marginal cost is at its minimum value. C) when average variable cost is getting smaller. D) when average variable cost is getting larger.

Q: Keynse Company owns 70% of Subdia Incorporated. The Investment in Subdia qualifies as a business reporting unit under FASB 142, and Keynse has reported goodwill in the amount of $200,000 with respect to its acquisition of Subdia. Subdia's $10 par common stock is currently trading for $92 per share, Subdia's account book balances and related fair values at December 31, 2011 are shown below. Book Values Fair Values Cash $2,000,000 $2,000,000 Accounts Receivable 8,000,000 7,500,000 Plant assets net 18,000,000 23,000,000 Patents 1,000,000 1,500,000 Accounts Payable ( 9,000,000) ( 9,000,000) Notes Payable (16,000,000) (16,000,000) Common Stock ( 1,000,000) Retained Earnings ( 3,000,000) Required: Determine if Goodwill has been impaired, and if so, the amount of adjustment that would be required.

Q: The process of transferring general journal information to the ledger is: A.Double-entry accounting. B.Posting. C.Balancing an account. D.Journalizing. E.Not required unless debits do not equal credits.

Q: The theory that there is no way to ʺget rich quickʺ in securities due to a lack of predictable trends isA) no-win theory. B) market trend analysis. C) random walk theory. D) trading.

Q: On January 1, 2010, Palgan, Co. purchased 75% of the outstanding voting common stock of Somil, Inc., for $1,500,000. The book value of Somil's net equity on that date was $2,000,000. Book values were equal to fair values except as follows: Book Fair Assets & Liabilities Values Values Inventory $ 225,000 $ 253,000 Building 850,000 750,000 Note payable 320,000 304,000 Required: Prepare a schedule to allocate any excess purchase cost to specific assets and liabilities.

Q: At the beginning of the current year, Taunton Company's total assets were $248,000 and its total liabilities were $175,000. During the year, the company reported total revenues of $93,000, total expenses of $76,000 and owner withdrawals of $5,000. There were no other changes in owner's capital during the year and total assets at the end of the year were $260,000. Taunton Company's debt ratio at the end of the current year is: A.70.6%. B.67.3%. C.32.7%. D.48.6%. E.Cannot be determined from the information provided.

Q: Which of the following is not a disadvantage of a proprietorship? A) How profits are taxed B) Ability to raise capital C) Unlimited liability D) The disposition of the firm when the owner dies

Q: On January 1, 2010, Petrel, Inc. purchased 70% of the outstanding voting common stock of Ocean, Inc., for $2,600,000. The book value of Ocean's net equity on that date was $3,100,000. Book values were equal to fair values except as follows: Book Fair Assets & Liabilities Values Values Equipment $ 250,000 $ 190,000 Building 600,000 700,000 Note payable 270,000 240,000 Required: Prepare a schedule to allocate any excess purchase cost to specific assets and liabilities.

Q: At the end of the current year, Norman Company reported total liabilities of $300,000 and total equity of $100,000. The company's debt ratio on the last year-end was: A.300%. B.33.3% C.75.0%. D.$400,000. E.Cannot be determined from the information provided.

Q: For 2010, 2011, and 2012, Squid Corporation earned net incomes of $40,000, $70,000, and $100,000, respectively, and paid dividends of $24,000, $32,000, and $44,000, respectively. On January 1, 2010, Squid had $500,000 of $10 par value common stock outstanding and $100,000 of retained earnings. On January 1 of each of these years, Albatross Corporation bought 5% of the outstanding common stock of Squid paying $37,000 per 5% block on January 1, 2010, 2011, and 2012. All payments made by Albatross in excess of book value were attributable to equipment, which is depreciated over five years on a straight-line basis. Required: 1. Assuming that Albatross uses the cost method of accounting for its investment in Squid, how much dividend income will Albatross recognize for each of the three years and what will be the balance in the investment account at the end of each year? 2. Assuming that Albatross has significant influence and uses the equity method of accounting (even though its ownership percentage is less than 20%), how much net investee income will Albatross recognize for each of the three years?

Q: Mathematically the marginal rate of substitution isA) always a negative number. B) always a positive number. C) is equal to 1.D) sometimes a positive and sometimes a negative number.

Q: Which of the following statements describing the debt ratio is false? A.It is of use to both internal and external users of accounting information. B.A relatively high ratio is always desirable. C.The dividing line for a high and low ratio varies from industry to industry. D.Many factors such as a company's age, stability, profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio. E.The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt.

Q: Regretting a last unit of consumption of cake implies thatA) the total utility from eating cake was negative. B) cake is an inferior good.C) the marginal utility of the last unit of cake consumed was negative. D) the demand curve for cake is horizontal.

Q: For 2010 and 2011, Sabil Corporation earned net income of $480,000 and $640,000 and paid dividends of $18,000 and $20,000, respectively. At January 1, 2010, Sabil had $200,000 of $10 par value common stock outstanding and $1,500,000 of retained earnings. On January 1 of each of these years, Phyit Corporation bought 10% of the outstanding common stock of Sabil paying $200,000 per 10% block on January 1, 2010 and 2011. All payments made by Phyit in excess of book value were attributable to equipment, which is depreciated over ten years on a straight-line basis. Required: 1. If Phyit uses the cost method of accounting for its investment in Sabil, how much dividend income will Phyit recognize in 2010 and 2011, and what will be the balance in the investment account at the end of each year? 2. If Phyit has significant influence and can justify using the equity method of accounting, how much net investee income will Phyit recognize for 2010 and 2011?

Q: Stride Rite has total assets of $385 million. Its total liabilities are $100 million and its equity is $285 million. Calculate its debt ratio. A.35.1%. B.26.0%. C.38.5%. D.28.5%. E.58.8%.

Q: Shoreline Corporation had $3,000,000 of $10 par value common stock outstanding on January 1, 2009, and retained earnings of $1,000,000 on the same date. During 2009, 2010, and 2011, Shoreline earned net incomes of $400,000, $700,000, and $300,000, respectively, and paid dividends of $300,000, $550,000, and $100,000, respectively. On January 1, 2009, Pebble purchased 21% of Shoreline's outstanding common stock for $1,240,000. On January 1, 2010, Pebble purchased 9% of Shoreline's outstanding stock for $510,000, and on January 1, 2011, Pebble purchased another 5% of Shoreline's outstanding stock for $320,000. All payments made by Pebble that are in excess of the appropriate book values were attributed to equipment, with each block depreciable over 20 years under the straight-line method. Required: 1. What is the adjustment to Investment Income for depreciation expense for Pebble's investment in Shoreline in 2009, 2010, and 2011? 2. What will be the December 31, 2011 balance in the Investment in Shoreline account after all adjustments have been made?

Q: A positive cross price elasticity of demand between two goods suggests that the goods areA) not related. B) complements.C) substitutes. D) both of unitary elasticity.

Q: According to the above table, what is the absolute price elasticity of demand when price rises from $5.50 to $6?A) 4.00 B) 2.23 C) 1.21 D) 0.50

Q: Shebing Corporation had $80,000 of $10 par value common stock outstanding on January 1, 2010, and retained earnings of $120,000 on the same date. During 2010 and 2011, Shebing earned net incomes of $30,000 and $45,000, respectively, and paid dividends of $8,000 and $10,000, respectively. On January 1, 2010, Pentz Company purchased 25% of Shebing's outstanding common stock for $60,000. On January 1, 2011, Pentz purchased an additional 10% of Shebing's outstanding stock for $30,200. The payments made by Pentz in excess of the book value of net assets acquired were attributed to equipment, with each excess value amount depreciable over 8 years under the straight-line method. Required: 1. What is the adjustment to Investment Income for depreciation expense relating to Pentz's Investment in Shebing in 2010 and 2011? 2. What will be the December 31, 2011 balance in the Investment in Shebing account after all adjustments have been made?

Q: Which of the following statements is incorrect? A.Higher financial leverage involves higher risk. B.Risk is higher if a company has more liabilities. C.Risk is higher if a company has higher assets. D.The debt ratio is one measure of financial risk. E.Lower financial leverage involves lower risk.

Q: On January 2, 2010, Slurg Corporation paid $600,000 to acquire 20% interest in Padwaddy Inc. At that time, the book value of Padwaddy's stockholders' equity included $700,000 of common stock and $1,800,000 of retained earnings. All the excess purchase cost over the book value acquired was attributable to a patent with an estimated life of 10 years. Padwaddy paid $6,250 of dividends each quarter for the next two years, and reported net income of $180,000 for 2010 and $220,000 for 2011. Slurg recorded all activities related to their investment using the equity method. Required: 1. Calculate Slurg's income from Padwaddy for 2010. 2. Calculate Slurg's income from Padwaddy for 2011. 3. Determine the balance of Slurg's Investment in Padwaddy account on December 31, 2011.

Q: In the above figure, if a firm is cleaning up Q4 units of pollution, it is anA) efficient solution, because marginal social benefits are greater than marginal social costs. B) efficient solution, because marginal social benefits are equal to marginal social costs.C) inefficient solution, because marginal social benefits are greater than marginal social costs. D) inefficient solution, because marginal social costs are greater than marginal social benefits.

Q: Which of the following is the formula used to calculate the debt ratio? A.Total Equity/Total Liabilities. B.Total Liabilities/Total Equity. C.Total Liabilities/Total Assets. D.Total Assets/Total Liabilities. E.Total Equity/Total Assets.

Q: Pearl Corporation paid $150,000 on January 1, 2010 for a 25% interest in Sandlin Inc. On January 1, 2010, the book value of Sandlin's stockholders' equity consisted of $200,000 of common stock and $200,000 of retained earnings. All the excess purchase cost over book value acquired was attributable to a patent with an estimated life of 5 years. During 2010 and 2011, Sandlin paid $3,000 of dividends each quarter and reported net income of $60,000 for 2010 and $80,000 for 2011. Pearl used the equity method. Required: 1. Calculate Pearl's income from Sandlin for 2010. 2. Calculate Pearl's income from Sandlin for 2011. 3. Determine the balance of Pearl's Investment in Sandlin account on December 31, 2011.

Q: Since the War on Poverty was started in 1965, the United States has spent more than $12 trillion on income maintenance programs. The effect has been toA) reduce poverty levels substantially. B) reduce poverty levels moderately.C) have virtually no effect on poverty levels.D) increase poverty substantially.

Q: The debt ratio is used: A.To measure the relation of equity to expenses. B.To reflect the risk associated with a company's debts. C.Only by banks when a business applies for a loan. D.To determine how much debt a firm should pay off. E.All of these.

Q: Paster Corporation was seeking to expand its customer base, and wanted to acquire a company in a market area it had not yet served. Paster determined that the Semma Company was already in the market they were pursuing, and on January 1, 2011, purchased a 25% interest in Semma to assure access to Semma's customer base. Paster paid $800,000, at a time when the book value of Semma's net equity was $3,000,000. Semma's book values equaled their fair values except for the following items: Book Fair Value Value Difference Inventories $150,000 $200,000 $ 50,000 Land 80,000 100,000 20,000 Building-net 220,000 180,000 (40,000) Equipment-net 260,000 310,000 50,000 Required: Prepare a schedule to allocate any excess purchase cost to identifiable assets and goodwill.

Q: The MFC can be calculated by theA) change in total wages/change in labor. B) total wages/total labor.C) change in labor/change in total wages. D) total wages/change in labor.

Q: Based on the information included in Question #102, the balance in the Andrea Conaway, Capital account reported on the Statement of Owner's Equity at the end of the month would be: A.$31,400. B.$39,200. C.$31,150. D.$40,175. E.$30,875.

Q: Stilt Corporation purchased a 40% interest in the common stock of Shallow Company for $2,660,000 on January 1, 2011, when the book value of Shallow's net equity was $6,000,000. Shallow's book values equaled their fair values except for the following items: Book Fair Value Value Difference Inventories $450,000 $500,000 $ 50,000 Land 100,000 450,000 350,000 Building-net 400,000 200,000 (200,000) Equipment-net 350,000 400,000 50,000 Required: Prepare a schedule to allocate any excess purchase cost to identifiable assets and goodwill.

Q: Union membership, in terms of percentage of the U.S. civilian labor force, A) has increased steadily since the passage of the Wagner Act.B) peaked about 1960 and has since declined. C) was over 50 percent in 1987.D) has increased dramatically since 1970.

Q: Andrea Conaway opened Wonderland Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1) Conaway invested $13,500 cash in the business. 2) Conaway contributed $20,000 of photography equipment to the business. 3) The company paid $2,100 cash for an insurance policy covering the next 24 months. 4) The company received $5,700 cash for services provided during January. 5) The company purchased $6,200 of office equipment on credit. 6) The company provided $2,750 of services to customers on account. 7) The company paid cash of $1,500 for monthly rent. 8) The company paid $3,100 on the office equipment purchased in transaction #5 above. 9) Paid $275 cash for January utilities. Based on this information, the balance in the cash account at the end of January would be: A. $41,450. B. $12,225 C. $18,700. D. $15,250. E. $13,500.

Q: The individual demand curve for an input such as labor to a firm would be the downward sloping portion of the firmʹsA) marginal physical product curve. B) marginal revenue product curve. C) marginal revenue curve. D) total revenue curve.

Q: On January 1, 2011, Pailor Inc. purchased 40% of the outstanding stock of Saska Company for $300,000. At that time, Saska's stockholders' equity consisted of $270,000 common stock and $330,000 of retained earnings. Saska Corporation reported net income of $360,000 for 2011. The allocation of the $60,000 excess of cost over book value acquired is shown below, along with information relating to the useful lives of the items: Overvalued receivables (collected in 2011) $(5,000) Undervalued inventories (sold in 2011) 16,000 Undervalued building (4 years' useful life remaining at January 1, 2011) 24,000 Undervalued land 8,000 Unrecorded patent (6 years' economic life remaining at January 1, 2011) 18,000 Undervalued accounts payable (paid in 2011) (4,000) Total of excess allocated to identifiable assets and liabilities 57,000 Goodwill 3,000 Excess cost over book value acquired $60,000 Required: Determine Pailor's investment income from Saska for 2011.

Q: On January 1 of the current year, Bob's Lawn Care Service reported owner's capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Bob withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was: A.A decrease of $9,500. B.An increase of $9,500. C.An increase of $30,500. D.A decrease of $30,500 E.Impossible to determine from the information provided.

Q: Regarding the costs of regulation, which is a FALSE statement? A) Airline safety standards have increased the price of air travel. B) Automobile safety standards raise the price of cars. C) Regulatory spending by federal agencies has decreased since 1970. D) Pharmaceutical manufacturing safety standards raise the price of drugs.

Q: Sandpiper Inc. acquired a 30% interest in Shore Corporation for $27,000 cash on January 1, 2011, when Shore's stockholders' equity consisted of $30,000 of capital stock and $20,000 of retained earnings. Shore Corporation reported net income of $18,000 for 2011. The allocation of the $12,000 excess of cost over book value acquired on January 1 is shown below, along with information relating to the useful lives of the items: Overvalued receivables (collected in 2011) $(600) Undervalued inventories (sold in 2011) 2,400 Undervalued building (6 years' useful life remaining at January 1, 2011) 3,600 Undervalued land 900 Unrecorded patent (8 years' economic life remaining at January 1, 2011) 3,200 Undervalued accounts payable (paid in 2011) (300) Total of excess allocated to identifiable assets and liabilities 9,200 Goodwill 2,800 Excess cost over book value acquired $12,000 Required: Determine Sandpiper's investment income from Shore for 2011.

Q: During the month of March, Cooley Computer Services made purchases on account totaling $43,500. Also during the month of March, Cooley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March? A.$83,900. B.$91,900. C.$6,600. D.$75,900. E.$4,900.

Q: If the product of one firm is complementary to another product of another firm, then the two productsA) are compatible. B) are substitutable.C) have a zero network effect. D) have a negative network effect.

Q: On January 1, 2011, Pendal Corporation purchased 25% of the outstanding common stock of Sedda Corporation for $100,000 cash. Book value and fair value of Sedda's assets and liabilities at the time of acquisition are shown below. Assets Book Fair Values Values Cash $40,000 $40,000 Accounts receivable 100,000 90,000 Inventories 40,000 50,000 Equipment 180,000 210,000 $360,000 $390,000 Liabilities & Equities Accounts payable $110,000 $110,000 Note payable 50,000 40,000 Capital stock 100,000 Retained earnings 100,000 $360,000 $150,000 Required: Prepare an allocation schedule for Pendal's investment in Sedda.

Q: At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be: A.$54,700. B.$49,700. C.$2,300. D.$54,300. E.$49,300.

Q: Managers in oligopoly firms mustA) eliminate any barriers to entry if they hope to make short -run profits. B) advertise heavily in order to differentiate their product.C) anticipate the reaction of rival firms.D) establish many varieties of their products to cover the spectrum of consumer tastes.

Q: Dotterel Corporation paid $200,000 cash for 40% of the voting common stock of Swamp Land Inc. on January 1, 2011. Book value and fair value information for Swamp on this date is as follows: Book Fair Assets Values Values Cash $60,000 $60,000 Accounts receivable 120,000 120,000 Inventories 80,000 100,000 Equipment 340,000 400,000 $ 600,000 $ 680,000 Liabilities & Equities Accounts payable $200,000 $200,000 Note payable 120,000 100,000 Capital stock 200,000 Retained earnings 80,000 $600,000 $300,000 Required: Prepare an allocation schedule for Dotterel's investment in Swamp Land.

Q: Zed Bennett opened an art gallery and as a dealer completed these transactions: 1) Started the gallery, Artery, by investing $40,000 cash and equipment valued at $18,000. 2) Purchased $70 of office supplies on credit. 3) Paid $1,200 cash for the receptionist's salary. 4) Sold a painting for an artist and collected a $4,500 cash commission on the sale. 5) Completed an art appraisal and billed the client $200. What was the balance of the cash account after these transactions were posted? A. $12,230. B. $12,430. C. $43,300. D. $43,430. E. $61,430.

Q: The two economists associated with the development of the theory of monopolistic competition wereA) Joan Robinson and Edward Chamberlin. B) David Hume and Adam Smith.C) John Neville Keynes and John Maynard Keynes.D) Carl Menger and Eugen Von Bohm-Bawerk.

Q: On January 1, 2010, Platt Corporation purchased a 30% interest in Sandig Company for $450,000. On this date, the fair values of Sandig's assets and liabilities are assumed to be the same as their book values. Platt will account for Sandig using the equity method. Sandig's adjusted trial balance at the date of acquisition and year end were as follows: Debits December 31 January 1 Current assets $160,000 $120,000 Noncurrent assets 420,000 460,000 Expenses 390,000 Dividends (paid June 30) 40,000 Total $1,010,000 Credits Current Liabilities $90,000 $120,000 Capital stock 250,000 250,000 Beginning Retained earnings 140,000 140,000 Sales 530,000 Total $1,010,000 Required: 1. What is Platt's investment income from Sandig for the year ending December 31, 2010? 2. Calculate Platt's investment in Sandig at year end December 31, 2010.

Q: If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to: A.Debit Salary Expense and credit Cash. B.Debit Tim Jones, Salary and credit Cash. C.Debit Cash and credit Tim Jones, Withdrawals. D.Debit Tim Jones, Withdrawals and credit Cash. E.Debit Automobiles and credit Cash.