An organization's technician was granted a role that enables him to prioritize projects throughout the organization. Which type of authority will the technician most likely be exercising?

• A.Coercive authority.
• B.Expert authority.
• C.Legitimate authority
• D.Referent authority.

Comment: *

Name: *

Email: *

Verification: *

Which adjusting entry should be used at year-end to account for interest expense on the long-term debt?

• A.Interest expense US $100,000 Interest payable US $100,000
• B.Interest expense US $50,000 Cash US $50,000
• C.Interest payable US $100,000 Interest expense US $100,000
• D.Interest expense US $50,000 Interest payable US $50,000

Correct Answer: D

The debt was issued on July 1 and has been outstanding for only 6 months. Interest expense equals the face amount of the debt multiplied by the interest rate and the fraction of the year the debt was outstanding [US $1.000.000 x 10% x6 - 12) = US $50,000].
Because interest is payable on July1 6 months' interest is accrued and expensed in the current period. The payable is also recognized in the current period. Thus, the adjusting entry should be
Interest expense US $50,000 Interest payable US $50.000
Copper Co. had the pre-closing trial balance at December 31 shown below. Additional information: The balance of opening inventory was US $140,000. The long-term debt pays interest at a rate of 10% per annum, payable every 12 months. The debt was issued on July 1 of the current year and originally had 5 years to maturity. The assets classified as property, plant, and equipment have a 10-year estimated useful life and were 1 year old at the start of the current year Straight-line depreciation is used.

Comment: *

Name: *

Email: *

Verification: *

Butteco has the following cost components for 100,000 units of product for the year just ended:

All costs are variable except for US $100,000 of manufacturing overhead and US $100,000 of selling and administrative expenses.
The total costs to produce and sell 110.000 units during the year are:

• A.US $650,000
• B.US $715,000
• C.US $695,000
• D.US $540,000

Comment: *

Name: *

Email: *

Verification: *

A restaurant decided to expand its business to include delivery services, rather than relying on third-party food delivery services. Which of the following best describes the restaurants strategy?

• A.Differentiation
• B.Vertical integration
• C.Diversification
• D.Risk avoidance

Comment: *

Name: *

Email: *

Verification: *

In Year 2, the entity had cash provided by operations of:

• A.US $219,000
• B.US $244,000
• C.US $344,000
• D.US $469,000

Correct Answer: A

Cash provided by operations equals profit, plus depreciation, minus the increase in accounts receivable, minus the decrease in accounts payable. The cash provided is US $219,000 [$294,000 + $50,000 -$300,000 - $200,000) -$275,000 - $250,000)]. An increase in receivables is a noncash component of profit. A decrease in accounts payable is added when adjusting cost of goods sold to reflect cash paid to suppliers. Thus, it is subtracted when adjusting profit to arrive at cash provided by operations. An entity has the following statements:

Comment: *

Name: *

Email: *

Verification: *