Accounting for Decision Making Mock Exam https://quizplus.com/study-set/3315 14 Chapters 2651 Verified Questions
Accounting for Decision Making Mock Exam Course Introduction Accounting for Decision Making is designed to introduce students to the vital role that accounting information plays in managerial decision processes. The course covers foundational concepts in both financial and managerial accounting, focusing on how relevant data is identified, interpreted, and used to support strategic planning, budgeting, cost control, and performance evaluation. Students will learn to analyze financial statements, apply various costing methods, and utilize key accounting tools to make informed business decisions in complex and dynamic environments. Emphasis is placed on real-world case studies and ethical considerations, equipping future managers with practical skills for effective decision making.
Recommended Textbook Cornerstones of Financial Accounting 3rd Edition by Jay Rich
Available Study Resources on Quizplus 14 Chapters 2651 Verified Questions 2651 Flashcards Source URL: https://quizplus.com/study-set/3315
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Chapter 1: Accounting and the Financial Statements Available Study Resources on Quizplus for this Chatper 239 Verified Questions 239 Flashcards Source URL: https://quizplus.com/quiz/65788
Sample Questions Q1) Current assets include all of the following: cash, inventory, equipment, supplies, and accounts receivable. A)True B)False Answer: False Q2) External users of financial information A)need detailed records of the business to make informed decisions. B)are primarily responsible for the preparation of financial statements. C)rely on the financial statements to help make informed decisions. D)rely on management to tell them whether the company is a good investment. Answer: C Q3) Which one of the following is an internal user of financial information? A)company management B)governments C)creditors D)investors Answer: A Q4) Cash flows directly related to earning income Answer: C To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Accounting Information System Available Study Resources on Quizplus for this Chatper 249 Verified Questions 249 Flashcards Source URL: https://quizplus.com/quiz/65787
Sample Questions Q1) Information that is material means that an error in recording the dollar amount of a transaction would A)likely affect the judgment of someone relying on the financial statements. B)not affect the decisions of financial statement users. C)not impact a business decision of a creditor. D)result in the overstatement of assets or income. Answer: A Q2) Purchasing insurance for 1 year Answer: D Q3) The concept that assumes that an entity is not in the process of bankruptcy is called the ___________ concept. Answer: going concern Q4) Collecting cash from customers who had previously made credit purchases Answer: D Q5) This principle is used to determine when revenue is recorded and reported. Answer: J Q6) A revenue account has a normal ___________ balance. Answer: credit Q7) A list of all active accounts and each Page account's debit or credit balance. 4 Answer: J
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Chapter 3: Accrual Accounting Available Study Resources on Quizplus for this Chatper 216 Verified Questions 216 Flashcards Source URL: https://quizplus.com/quiz/65786
Sample Questions Q1) Supplies Expense Answer: A Q2) A company rented office space to a tenant on January 1 and received a total of $90,000 for the first nine months of rent. The amount was recorded as Rent Collected in Advance when received. Adjustments are recorded only at the end of every quarter. What effect does the adjustment at March 31 have on the company's net income for the quarter ending March 31? A)Increase by $90,000 B)Decrease by $60,000 C)Decrease by $30,000 D)Increase by $30,000 Answer: D Q3) Adjusting entries must be made prior to the preparation of financial statements. A)True B)False Answer: True Q4) A ____________________ results when cash is paid before the related amount is reported on the income statement. Answer: prepaid expense To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Internal Control and Cash Available Study Resources on Quizplus for this Chatper 210 Verified Questions 210 Flashcards Source URL: https://quizplus.com/quiz/65785
Sample Questions Q1) Which of the following is not considered to be a Cash Equivalent? A)corporate commercial paper due in 60 days after purchase B)U.S. Treasury bills with an original maturity of six months C)a money market account with a stock brokerage firm D)a certificate of deposit with a term of 75 days when acquired Q2) A debit memo may be issued in the monthly bank statement in order for the bank to notify a company that a service charge has been assessed on the company's account. A)True B)False Q3) The process of ensuring that the company's accounting records are consistent with the bank's accounting records Q4) Which internal control activity is violated when the cashier at a cash register in a retail store also records the daily receipts in a journal? A)segregation of duties B)adequate documents and records C)independent checks on recorded amounts D)safeguards over assets and records Q5) Customer's NSF check returned with the bank statement To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Sales and Receivables Available Study Resources on Quizplus for this Chatper 158 Verified Questions 158 Flashcards Source URL: https://quizplus.com/quiz/65784
Sample Questions Q1) Identify two methods of accelerating cash from sales. Q2) Refer to A Better Mousetrap. What amount should the company recognize as interest revenue on December 31, 2013? A)$ -0B)$ 750 C)$1,500 D)$9,000 Q3) Internal control for sales involve which of the following documentation? A)A sale and its associated receivable are recorded only when the order, shipping, and billing documents are all presented. B)A sale and its associated receivable are recorded only when the billing documents are prepared. C)A sale and its associated receivable are recorded only when the goods are ordered. D)A sale and its associated receivable are recorded only when the good are produced. Q4) Airport Support Company reported its accounts receivable turnover ratio at 10 times. Its credit terms are 2/10, n/20. What does this ratio tell you about this company? To view all questions and flashcards with answers, click on the resource link above.
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Chapter 6: Cost of Goods Sold and Inventory Available Study Resources on Quizplus for this Chatper 238 Verified Questions 238 Flashcards Source URL: https://quizplus.com/quiz/65783
Sample Questions Q1) Under a perpetual inventory system, each time goods are purchased, the inventory account is transferred to sales revenue. A)True B)False Q2) The difference between the FIFO, LIFO, and average cost methods is that each of these methods of inventory costing makes a specific assumption about the flow of costs. A)True B)False Q3) The inventory turnover ratio is a measure of how many times during a period a company sells off its inventory. A)True B)False Q4) Sales discounts decrease the cost of inventory acquired. A)True B)False Q5) Merchandise held for sale in the normal course of business. Q6) The time span during which purchase discounts are available. Q7) Prices are declining; gross margin is higher with this method. Page 8 Q8) Transportation costs paid by the buyer. To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Operating Assets Available Study Resources on Quizplus for this Chatper 193 Verified Questions 193 Flashcards Source URL: https://quizplus.com/quiz/65782
Sample Questions Q1) This method maximizes net income. Q2) The transportation charges related to the acquisition costs of a new piece of machinery. Q3) Current accounting standards indicate that the costs of intangible assets with an indefinite life, such as goodwill, should A)not be amortized, but should be reviewed annually for impairment. B)be reported on the statement of retained earnings in the year in which acquired. C)be amortized over a reasonable period of time not to exceed 40 years. D)be debited to an expense account entirely in the year in which acquired. Q4) Loss on disposal of plant asset Q5) Represent future economic benefit to the company but they lack physical substance Q6) Refer to Fernbank Farms. What is the truck's book value at December 31, 2013? A)$68,000 B)$98,000 C)$80,000 D)$62,000 Q7) Building Page 9 Q8) This method minimizes taxable income To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Current and Contingent Liabilities Available Study Resources on Quizplus for this Chatper 187 Verified Questions 187 Flashcards Source URL: https://quizplus.com/quiz/65781
Sample Questions Q1) Liabilities created by adjusting entries Q2) Refer to Georgia's Salon. On May 31, 2013, all but $1,500 of the gift cards had been redeemed for salon services. What is the impact on the accounting equation of recording the expired gift cards? A)Assets and liabilities increase. B)Assets and liabilities decrease. C)Liabilities increase and stockholders' equity decreases. D)Liabilities decrease and stockholders' equity increases. Q3) An example of a current liability is a note payable that is due in 2 years. A)True B)False Q4) A company is required to estimate a liability for repairs for products sold with a warranty. In the year following the sale, the firm's accountants find that the estimated amount for repairs has been overstated. The correct accounting procedure in the year following the sale is to A)make an adjusting entry to reduce the amount of the estimate. B)make a correcting entry because the overstatement is an error. C)show the amount of overstatement on the income statement as a loss. D)do nothing because the misstatement related to the prior year. Q5) Taxes levied by state and local governments Page 10 To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Long-Term Liabilities Available Study Resources on Quizplus for this Chatper 160 Verified Questions 160 Flashcards Source URL: https://quizplus.com/quiz/65780
Sample Questions Q1) Refer to Kaleidoscope Paint. The interest expense on the bonds at June 30, 2013, is A)$22,500. B)$24,037. C)$21,634. D)$43,267. Q2)
Obligations
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____________________. Q3) A lease is accounted for as an operating lease if the present value of the lease payments is at least 90 percent of the fair value of the leased property. A)True B)False Q4) "You Decide" Essay You are the Chief Financial Officer of Kyoto Mining Company. Your company issued $10,000,000 in bonds payable at the beginning of the year at a sizable discount. You are getting ready to make your December 31 adjusting entries. The owners, who are worried about their tax bill for the year, have asked you to select whichever method of amortizing bond discounts that maximizes interest expense.Respond to the owners. Q5) Occurs when a bond is issued for an amount that is less than the principal. To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Stockholders Equity Available Study Resources on Quizplus for this Chatper 242 Verified Questions 242 Flashcards Source URL: https://quizplus.com/quiz/65779
Sample Questions Q1) Which of the following items is included as part of comprehensive income but not as part of net income? A)income tax expense B)unrealized holding gains or losses C)gains or losses on the sale of equipment D)gains or losses on the sale of investments Q2) Individuals who hold this stock receive priority over common shareholders in the payment of dividends and the distribution of assets in the event of liquidation. Q3) The ____________________ ratio is computed by subtracting the dividend payout ratio from the total payout ratio. Q4) Stated capital is the amount of capital that, under law, cannot be returned to the corporation's owners except upon liquidation. A)True B)False Q5) A performance measures that assesses the growth in equity from operating activities. Q6) The number of shares sold to stockholders are ____________________ shares. Q7) Authorization for the corporation to redeem preferred shares in the future. Page 12 To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: The Statement of Cash Flows Available Study Resources on Quizplus for this Chatper 206 Verified Questions 206 Flashcards Source URL: https://quizplus.com/quiz/65778
Sample Questions Q1) Which of the following is not a financing activity? A)Issuing bonds for cash. B)Selling an investment in IBM stock for cash. C)Purchasing a company's own stock (treasury stock)for cash. D)Making a cash payment to repay a bank loan. Q2) When using the indirect method to determine operating cash flows, how would the declaration and payment of cash dividends be shown on the Statement of Cash Flows? A)operating activities B)investing activities C)financing activities D)noncash investing and financing activity E)not reported on the statement of cash flows. Q3) The statement of cash flows summarizes the operating, investing, and financing activities of a business for a period of time. A)True B)False Q4) ____________________ activities involve long-term liabilities and stockholders' equity. Q5) Recorded depreciation expenses for the year. 13 click on the resource link above. To view all questions and flashcards withPage answers,
Chapter 12: Financial Statement Analysis Available Study Resources on Quizplus for this Chatper 233 Verified Questions 233 Flashcards Source URL: https://quizplus.com/quiz/65777
Sample Questions Q1) Refer to Recovery Solutions, Inc. Assuming the company's cash flow from operations for 2015 is $323,847, calculate the operating cash flow ratio for 2015. Is the company in danger of liquidity problems? Q2) Length of time required to sell inventory to customers. Q3) Assume that a company's current ratio is 2.0. If the company purchases inventory on credit, which of the following is true? A)The current ratio will increase. B)The current ratio will decrease. C)There will be no net impact on the current ratio. D)The current ratio will change, but there will be no effect on the quick ratio. Q4) Refer to Rio Imports. The dividend payout ratio for 2015 is A)16.7%. B)18.5%. C)25.0%. D)27.8%. Q5) compares a single corporation across time. Q6) ____________________ statements highlight differences by expressing each financial statement item in percentage terms. Q7) Public companies file their quarterly reports Page 14on Form ____________________. To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Investments Available Study Resources on Quizplus for this Chatper 73 Verified Questions 73 Flashcards Source URL: https://quizplus.com/quiz/65790
Sample Questions Q1) Name given to the investee when an investor owns over 50% of the investee's outstanding common stock Q2) The practice of adjusting the market value of securities that are accounted for using the fair value method is referred to as A)consolidation. B)marking-to-market. C)passive investing. D)segregation of investments. Q3) When a company purchases less than 50% of the equity securities of another company, which of the following statements is true? A)Both companies' financial statements must be combined in consolidation. B)The equity method of accounting will be required if the company's investment is at least 20%. C)The fair value method of accounting will be used only if the securities are classified as available-for-sale. D)The fair value method of accounting will be used only if they are trading securities. Q4) Represents an ownership interest in a corporation, usually common stock To view all questions and flashcards with answers, click on the resource link above.
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Chapter 14: Time Value of Money Available Study Resources on Quizplus for this Chatper 47 Verified Questions 47 Flashcards Source URL: https://quizplus.com/quiz/65789
Sample Questions Q1) Jay has made a deal with his daughter to start a car fund for when she graduates college in 6 years. He has found an investment that will yield an interest rate of 8% per year. If he wants to have $25,000 to spend on the car for his daughter, how much must he initially invest? A)$15,754.28 B)$16,113.45 C)$13,772.55 D)$14,038.95 Q2) Tom liquidates an investment, and his proceeds will be received in 8 annual payments of $10,000 each with interest computed at 7%. What is the Present Value of this Annuity? A)$89,228.00 B)$59,713.00 C)$17,181.90 D)$5,820.10 Q3) The interest rate is the percentage that is multiplied by the future value to yield the amount of interest for that period. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 16