Accounting for Management
Pre-Test Questions
Course Introduction
Accounting for Management introduces the essential principles and practices of accounting with a focus on their application in managerial decision-making. The course examines how financial and cost accounting information is used by managers to plan, control, and evaluate business operations. Topics include budgeting, performance measurement, variance analysis, and the interpretation of financial statements, enabling students to utilize accounting data to support strategic objectives, operational efficiency, and effective resource allocation within organizations.
Recommended Textbook
Accounting 9th Canadian Edition Volume I by Charles T. Horngren
Available Study Resources on Quizplus
11 Chapters
1790 Verified Questions
1790 Flashcards
Source URL: https://quizplus.com/study-set/3385 Page 2
Chapter 1: Accounting and the Business Environment
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/67180
Sample Questions
Q1) Accounting is the information system that measures business activity,processes the data into reports,and communicates the results to decision makers.
A)True
B)False
Answer: True
Q2) Which of the following concepts (or principles)require an assumption that the entity will remain in operation for the foreseeable future?
A) Entity concept
B) Faithful representation principle
C) Going-concern concept
D) Cost principle
Answer: C
Q3) A creditor is a party that has an ownership interest in a business.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Recording Business Transactions
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/67179
Sample Questions
Q1) After the accountant posts these entries to the general ledger,what is the balance in the Cash account?
A) $7,500
B) $7,100
C) $5,700
D) $16,700
Answer: C
Q2) Which of the following accounts is a liability?
A) Accounts payable
B) Prepaid expenses
C) Salary expense
D) Service revenue
Answer: A
Q3) The trial balance is one of the three basic financial statements.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: The Adjusting Process
Available Study Resources on Quizplus for this Chatper
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/67178
Sample Questions
Q1) The owner of Recipes.org purchases $2,000 of supplies on account.Under the accrual basis of accounting,no entry is made until the $2,000 is paid.
A)True
B)False
Answer: False
Q2) In the case of a prepaid expense,the adjusting entry required at the end of a period consists of a debit to Prepaid expense.
A)True
B)False
Answer: False
Q3) An adjusting entry that credits Salaries payable is an example of a(n):
A) accrued expense.
B) unearned revenue.
C) accrued revenue.
D) prepaid expense.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Completing the Accounting Cycle
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/67177
Sample Questions
Q1) Beginning balance in Capital is $10,000.Revenues are $200,000.Expenses are $120,000.Withdrawals are $4,000.The ending balance in Capital is $90,000.
A)True
B)False
Q2) The current ratio and the debt ratio are shown on the income statement.
A)True
B)False
Q3) Which of the following is the current ratio? (Round to two decimal places.)
A) .97
B) .68
C) .25
D) 1.27
Q4) The post-closing trial balance is an optional step.
A)True
B)False
Q5) The formula for computing a current ratio is:
A) Current assets/Total assets.
B) Current assets/Total liabilities.
C) Current assets/Total equity.
D) Current assets/Current liabilities.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Merchandising Operations
Available Study Resources on Quizplus for this Chatper
168 Verified Questions
168 Flashcards
Source URL: https://quizplus.com/quiz/67176
Sample Questions
Q1) Which of the following is the result of gross profit divided by net sales?
A) Current ratio
B) Gross profit percentage
C) Debt ratio
D) Rate of inventory turnover
Q2) Beginning inventory is $42,000 and Ending inventory is $58,000.Cost of goods sold is $600,000.How much is the inventory turnover?
Q3) The perpetual inventory system keeps a running record of inventory and cost of goods sold.
A)True
B)False
Q4) Net sales revenue is equal to Sales revenue less Cost of goods sold. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Merchandising Inventory
Available Study Resources on Quizplus for this Chatper
156 Verified Questions
156 Flashcards
Source URL: https://quizplus.com/quiz/67175
Sample Questions
Q1) Henderson Sales purchased $500 of inventory on account.Please provide the journal entry.
\[\begin{array} { | l | r | r | }
\hline \quad\quad\quad&\quad&\quad \\
\hline \\ \hline \end{array}\]
Q2) In a period of rising costs,FIFO produces lower cost of goods sold and higher gross profit than LIFO.
A)True
B)False
Q3) Which inventory valuation model serves as a middle-of-the-road approach for taxes and income?
A) First-In, First-Out
B) Last-In, First-Out
C) Average-cost
D) Specific-unit-cost
Q4) Under Last-In,First-Out,the Cost of goods sold is based on the oldest purchases.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Internal Control and Cash
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/67174
Sample Questions
Q1) A strong computer firewall is an essential element of good internal controls for e-commerce.
A)True
B)False
Q2) Which of the following is a requirement of the Sarbanes-Oxley Act?
A) The outside auditor must issue an internal control report for each public company.
B) The Public Company Oversight Board must conduct audits of public companies.
C) Accounting firms may not both audit a public client and provide certain consulting services for the same client.
D) The Public Company Oversight Board must create new accounting standards.
Q3) Which of the following is a security procedure designed for e-commerce which rearranges text messages by a mathematical process?
A) Trojans
B) Firewalls
C) Encryption
D) Phishing
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Receivables
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/67173
Sample Questions
Q1) Martin Sales provides the following information: Net credit sales $500,000
Net accounts receivable,beginning of year 23,500
Net accounts receivable,end of year 18,000 How much is the accounts receivable turnover ratio? (Please round to the nearest whole number.)
A) 0.24
B) 13.00
C) 27.00
D) 24.00
Q2) Anchor Sales accepts credit cards from its customers.Assume Anchor makes a sale of $100 and the processor charges a 3% fee.Assume that the credit card processing company uses the net method of depositing funds.Provide the journal entry made by Anchor to record the sales revenue.
\[\begin{array} { | l | l | l | }
\hline \quad\quad& \quad&\quad \\
\hline & & \\\hline & & \\
\hline \end{array}\]
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Plant Assets and Intangibles
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/67172
Sample Questions
Q1) Goodwill is NOT amortized-but evaluated-each year for a decline in value.
A)True
B)False
Q2) Which of the following is the expense resulting from a decline in the utility of a natural resource?
A) Depletion
B) Amortization
C) Depreciation
D) Obsolescence
Q3) If an asset is fully depreciated,but it can continue to be used,the asset account and accumulated depreciation balance remain on the books,and no further depreciation is recorded.
A)True
B)False
Q4) Which of the following items should NOT be depreciated,depleted,or amortized?
A) Natural resources
B) Land
C) Tangible property, plant, and equipment, other than land
D) Intangible property
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Current Liabilities and Payroll
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/67171
Sample Questions
Q1) Which of the following is TRUE of a contingent liability?
A) It is a potential liability that depends on a future event.
B) It is an actual liability that is difficult to estimate.
C) It is an actual liability that depends on a past event.
D) It is a liability resulting from a lawsuit settled in court.
Q2) Art Parrish,the sole employee of Parrish Sales,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $106,800,and thus subject to FICA.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.The fourth journal entry in the payroll cycle to record the employer's payroll taxes should include which of the following?
A) Credit to Payroll tax expense
B) Debit to FICA tax payable
C) Credit to FICA tax payable
D) Credit to Cash
Q3) Which of the following is pay stated as a percentage of a sale amount?
A) Bonuses
B) Benefits
C) Wages
D) Commissions
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Long-Term Liabilities, bonds Payable, and
Classification of Liabilities on the Balance Sheet
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/67170
Sample Questions
Q1) Installment payments for mortgages are normally paid once per year.
A)True
B)False
Q2) Installment payments for mortgages typically contain both an amount for principal repayment and an amount for interest.
A)True
B)False
Q3) On January 1,2013,Davie Services issued $20,000 of 8% bonds that mature in five years.They were sold at discount,for a total of $19,000.The bonds pay semiannual interest payments on June 30 and December 31 of each year.On June 30,2013,how much is the total amount paid to bondholders?
A) $253.33
B) $1,520.00
C) $760.00
D) $800.00
Q4) The difference between a mortgage payable and a note payable is that notes payable are always long-term.
A)True
B)False
Page 13
To view all questions and flashcards with answers, click on the resource link above.