Accounting for Managers
Final Exam Questions
Course Introduction
Accounting for Managers provides an essential overview of accounting principles and practices relevant to managerial decision-making. The course covers core topics such as financial statement analysis, budgeting, costing techniques, and performance evaluation, equipping students with the tools to interpret financial information and apply it strategically within an organization. Emphasis is placed on using accounting data to plan, control, and make informed decisions that contribute to organizational objectives, making this course highly valuable for current and aspiring managers across various industries.
Recommended Textbook
Horngrens Financial and Managerial Accounting 4th Edition by Miller Nobles
Available Study Resources on Quizplus
27 Chapters
3949 Verified Questions
3949 Flashcards
Source URL: https://quizplus.com/study-set/3505
Page 2
Chapter 1: Accounting and the Business Environment
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/69608
Sample Questions
Q1) Lorna Smith decided to start her own CPA practice as a professional corporation,Smith CPA PC.Her corporation purchased an office building for $35,000 that her real estate agent said was worth $50,000 in the current market.The corporation records the building as a $50,000 asset because Lorna believes that is the real value of the building.Which of the following concepts or principles of accounting is being violated?
A)cost principle
B)economic entity assumption
C)monetary unit assumption
D)going concern assumption
Answer: A
Q2) The field of accounting that focuses on providing information for internal decision makers is ________.
A)managerial accounting
B)financial accounting
C)nonmonetary accounting
D)governmental accounting
Answer: A
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
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/69609
Sample Questions
Q1) A journal entry for a $75 payment for rent expense was posted as a debit to Salaries Expense and a credit to Cash.Which of the following statements correctly states the effect of the error on the trial balance?
A)The sum of the credits will equal the sum of the debits.
B)The sum of the debits will exceed the sum of the credits by $75.
C)The sum of the debits will exceed the sum of the credits by $150.
D)The sum of the credits will exceed the sum of the debits by $150.
Answer: A
Q2) Accountants first record transactions in a ________.
A)chart of accounts
B)trial balance
C)journal
D)ledger
Answer: C
Q3) When a business makes a cash payment,the Cash account is debited.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: The Adjusting Process
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/69610
Sample Questions
Q1) The employees of Kostner Financial Services Inc.worked the last two weeks of December,2014.They received their paychecks on January 2.Which of the following accounts should appear on the income statement for the year ended December 31,2014,as per the matching principle?
A)Salary Expense
B)Prepaid Expense
C)Salaries Payable
D)Unearned Revenue
Answer: A
Q2) The accountant of Skyscrapers Architectural Services failed to make an adjusting entry to record $7,000 of depreciation expense.Which of the following statements is true?
A)The total liabilities will be overstated.
B)The equity will be understated.
C)The total assets will be overstated.
D)The total assets will be understated.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Completing the Accounting Cycle
Available Study Resources on Quizplus for this Chatper
156 Verified Questions
156 Flashcards
Source URL: https://quizplus.com/quiz/69611
Sample Questions
Q1) Salaries Payable,Interest Payable,and Unearned Revenue are examples of
A)short-term investments
B)fixed assets
C)current liabilities
D)long-term liabilities
Q2) In an accounting cycle,which of the following steps takes place only at the end of the accounting period?
A)start with the beginning account balances
B)journalize transactions that occur
C)analyze transactions as they occur
D)journalize adjusting entries
Q3) Which of the following accounts will be closed by crediting the Income Summary account?
A)Service Revenue
B)Depreciation Expense
C)Accounts Payable
D)Accumulated Depreciation
Q4) Provide the closing entry for the Income Summary account.
Q5) Provide the closing entry for expenses.
Q6) Provide the closing entry for Service Revenue.
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
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/69612
Sample Questions
Q1) A single-step income statement shows subtotals for gross profit and operating income.
A)True B)False
Q2) Under the perpetual inventory system,when a purchaser makes payment within the discount period,the amount of discount will be credited to the Merchandise Inventory account.
A)True B)False
Q3) Gross profit is calculated as ________.
A)total sales revenue less sales discounts and allowances
B)total sales revenue less operating expenses
C)total net sales revenue less sales discounts
D)total net sales revenue less cost of goods sold
Q4) On November 1,2012,Everett Janitorial Supply sold merchandise with a cost of $3,200 for $5,000,with terms FOB destination,and payment terms of 2/10,n/30.The company uses a perpetual inventory system.Give journal entries to record the sales revenue.
Q5) Provide journal entries to close the Income Summary account and the Dividends account.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Merchandise Inventory
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/69613
Sample Questions
Q1) Changing from the LIFO (Last-In,First-Out)to the specific identification method of valuing inventory ignores the principle of ________.
A)conservatism
B)consistency
C)disclosure
D)materiality
Q2) Which of the following methods of inventory valuation requires the calculation of a new average cost after each purchase?
A)specific identification
B)weighted-average
C)last-in,first-out
D)first-in,first-out
Q3) The total cost spent on inventory that was available to be sold during a period is called the cost of goods sold.
A)True
B)False
Q4) Pluto Inc.purchased 500 units of inventory at $25 per unit by payment of cash.Provide the journal entry to record the purchase of inventory.(Assume a perpetual inventory system.)
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
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/69614
Sample Questions
Q1) In a bank reconciliation,a deposit in transit will be shown on the bank side of the reconciliation.
A)True
B)False
Q2) The Public Company Accounting Oversight Board oversees the work of auditors of public companies.
A)True
B)False
Q3) The bank statement reveals an EFT received from a customer that has not yet been recorded in the ledger.How would this information be included on the bank reconciliation?
A)an addition on the bank side
B)a deduction on the bank side
C)a deduction on the book side
D)an addition on the book side
Q4) Cash is a highly liquid asset,but cash equivalents are not highly liquid assets.
A)True
B)False
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
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/69615
Sample Questions
Q1) The entity that signs the promissory note and promises to pay the required amount is the ________.
A)maker of the note
B)banker of the note
C)holder of the note
D)payee of the note
Q2) On January 1,Ajax Corp.accepted a one-year note for $5,000 at 4% from one of its customers.When the note matured on December 31,the customer was unable to pay,and the company treated it as a dishonored note.Provide the journal entry for the dishonor of the note in the books of the company.
Q3) While counting the date of maturity of a note,the date of issue of the note should be omitted.
A)True
B)False
Q4) Clothesall Inc.,a readymade garment seller,accepts payment through credit cards.During the month of August,the card sales amounted to $12,000.The processor charges a 3% fee.Assuming that the credit card processor uses the gross method,provide the journal entries for the receipt of funds and the collection of fees at the end of the period.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Plant Assets, natural Resources, and Intangibles
Available Study Resources on Quizplus for this Chatper
151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/69616
Sample Questions
Q1) The process by which businesses spread the allocation of an intangible asset's cost over its useful life is referred to as amortization.
A)True
B)False
Q2) Iverycoast Inc.purchased a van on January 1,2015,for $800,000.Estimated life of the van was 5 years,and its estimated residual value was $90,000.Iverycoast uses the straight-line method of depreciation.Give journal entry to record the depreciation expense for 2015 on the van.
Q3) On January 1,2012 Hillop Inc.had total assets of $360,000.During the year,the company purchased new machinery worth $80,000 and promised to pay the amount due after two years.Throughout the year,it earned revenue of $50,000 every month.Calculate the asset turnover ratio.
A)1.2 times
B)1.8 times
C)1.5 times
D)1.4 times
Q4) The cost of land does not include the cost of fencing and paving the land.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Investments
Available Study Resources on Quizplus for this Chatper
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/69617
Sample
Questions
Q1) Which of the following is true of the accounting entries for debt securities?
A)The receipt of interest revenue is recorded with a debit to Interest Revenue and a credit to Cash.
B)Investments in debt securities are recorded at cost,including any brokerage fees paid.
C)The receipt of interest revenue is recorded with a debit to Cash and a credit to Long-term Securities-Held-to-Maturity.
D)Debt securities disposed of at maturity are recorded with a debit to the Short-term or Long-term Investments account and a credit to Cash.
Q2) Which of the following securities make an interest payment?
A)equity securities
B)preferred stocks
C)corporate bonds
D)significant interest investment
Q3) When a company invests in a long-term bond investment by paying cash,the total assets remain unchanged
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Current Liabilities and Payroll
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/69618
Sample Questions
Q1) ________ is a pay amount stated at an hourly rate.
A)Salary
B)Wage
C)Commission
D)Bonus
Q2) A $30,000,three-month,7% note payable was issued on December 1,2015.What is the amount of accrued interest on December 31,2015?
A)$175
B)$267
C)$133
D)$275
Q3) Which of the following liabilities is created when a company receives cash for services to be provided in the future?
A)Unearned Revenue
B)Accrued Liability
C)Accounts Payable
D)Estimated Warranty Payable
Q4) Which portion is classified as the long-term portion of Notes Payable at December 31,2014?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Long-Term Liabilities
Available Study Resources on Quizplus for this Chatper
151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/69619
Sample Questions
Q1) The current portion of notes payable is the principal amount that will be paid within two years of the balance sheet date and the remaining portion is long term.
A)True
B)False
Q2) A bond is issued at discount ________.
A)when a bond's stated interest rate is equal to the market interest rate
B)when a bond's stated interest rate is more than the effective interest rate
C)when a bond's stated interest rate is less than the market interest rate
D)when a bond's stated interest rate is higher than the market interest rate
Q3) On June 1,2015,Smith & Beecham Services issued $30,000 of 7.50% bonds that mature in five years.They were sold at a premium,for a total of $31,250.The bonds pay semiannual interest payments on June 30 and December 31 of each year.On December 31,2015,what is the total amount paid to bondholders?
A)$1,125.00
B)$2,250.00
C)$1,171.88
D)$2,343.75
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Stockholders Equity
Available Study Resources on Quizplus for this Chatper
158 Verified Questions
158 Flashcards
Source URL: https://quizplus.com/quiz/69620
Sample
Questions
Q1) Pearland Inc.has 5,000 shares of preferred stock outstanding.The preferred stock has a $90 par value,a 5% dividend rate,and is noncumulative.If Pearland has sufficient funds to pay dividends,what is the total amount of dividends that will be paid out to preferred stockholders?
A)$10,800
B)$22,500
C)$9,000
D)$4,500
Q2) A company cannot report a gain or loss when buying or selling its own stock.
A)True
B)False
Q3) Which of the following actions will decrease the amount of Total Stockholders' Equity?
A)cash dividend declared
B)stock split
C)stock dividend declared
D)repayment of bond principal
Q4) Rimsone Inc.purchases 8,500 shares of the company's $6 par common stock for $8 per share.Journalize the transaction.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/69621
Sample Questions
Q1) While preparing a statement of cash flows using the indirect method,an increase in current assets are added to net income to arrive at net cash flow from operating activities.
A)True
B)False
Q2) The activities that are included in the operating activities section of the statement of cash flows are ________.
A)activities that obtain the cash needed to launch and sustain the business
B)activities that create revenue or expenses
C)activities that increase or decrease long-term assets
D)activities that pertain to construction of new facilities
Q3) Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?
A)sold equipment with book value of $6,500 in exchange for $6,500 cash
B)settled a long-term Note Payable by issuing Common Stock
C)issued 20,000 shares of stock at $4 per share
D)purchased land for $30,000 cash
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/69622
Sample Questions
Q1) Working capital measures the ability to meet long-term obligations with current assets.
A)True
B)False
Q2) Benchmarking is the comparison of a company's current year results with an earlier year's performance.
A)True B)False
Q3) The figure 47.0% shown for gross profit in 2016 signifies that the ________.
A)gross profit is equal to 47.0% of net income
B)gross profit is increased by 47.0% over the previous year
C)gross profit is 47.0% of net sales revenue
D)gross profit is 47.0% of cost of goods sold
Q4) Zebra Inc.cost of goods sold for the year is $1,900,000 and the average merchandise inventory for the year is $129,000.Calculate the inventory turnover ratio of the company.
A)16.78 times
B)14.73 times
C)33.8 times
D)65.5 times
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/69623
Sample
Questions
Q1) An enterprise resource planning system (ERP)________.
A)is a cost management system in which a company produces products just in time to satisfy needs
B)requires the implementation of total quality management
C)integrates all worldwide functions,departments and data of a company into a single system
D)cannot be implemented in service companies
Q2) The IMA standards of ethical practice require managerial accountants to maintain their professional competence.
A)True
B)False
Q3) Which of the following is true of just-in-time (JIT)inventory management?
A)It results in more storage and insurance cost.
B)It is a system in which the company produces product only after receiving an order.
C)It promotes surplus inventory to prevent production shut-down in case of supply interruptions.
D)It requires a surplus inventory of finished goods to ensure timely,or just-in-time,delivery to customers.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Job Order Costing
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/69624
Sample Questions
Q1) At the end of the year,Martin Inc.has an unadjusted credit balance in the Manufacturing Overhead account of $95.Provide the year-end adjusting entry needed to clear the balance to zero.
Q2) Aaron Inc.estimates direct labor costs and manufacturing overhead costs for the coming year to be $800,000 and $500,000,respectively.Aaron allocates overhead costs based on machine hours.The estimated total labor hours and machine hours for the coming year are 16,000 hours and 10,000 hours,respectively.What is the predetermined overhead allocation rate?
A)$80.00 per machine hour
B)$31.25 per labor hour
C)$81.25 per labor hour
D)$50.00 per machine hour
Q3) Process costing is more appropriate for service companies than job order costing. A)True B)False
Q4) Accounting firms,building contractors,and healthcare providers use process costing. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Process Costing
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/69625
Sample Questions
Q1) The Polishing Department of Laminates Inc.had 15,000 units in process on June 1 and received 25,000 units from the Machining Department.What is the number of units to account for by the Polishing Department for June?
A)25,000 units
B)15,000 units
C)40,000 units
D)10,000 units
Q2) Production cost reports prepared using first-in-first-out (FIFO)method assumes that the first units started in the production process are the last units completed and sold.
A)True B)False
Q3) Under process costing,the number of units to account for must always be ________ the number of units accounted for. A)greater than B)lesser than C)equal to D)twice
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/69626
Sample Questions
Q1) A product mix decision focuses on generating maximum profit but does not consider limited production capabilities.
A)True
B)False
Q2) Activity-based costing uses a common allocation base for all activities.
A)True
B)False
Q3) Which of the following statements is true of target pricing?
A)It starts with the price that customers are willing to pay.
B)It uses the full product cost that a company estimates to arrive at the sales price.
C)It does not consider the nonmanufacturing costs while calculating the target cost.
D)It is the same as cost-based pricing.
Q4) Activity-based costing can be used in determining the cost of services as well as products.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
21
Chapter 20: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/69627
Sample Questions
Q1) What is the variable cost per minute?
A)$1.25
B)$0.67
C)$1.08
D)$0.58
Q2) The fundamental assumption of cost-volume-profit (CVP)analysis is that in the long-run fixed costs become variable costs. A)True B)False
Q3) Fixed costs per unit is inversely proportional to the volume of units produced. A)True B)False
Q4) Jenna Manufacturers produces flooring material.The monthly fixed costs are $10,000 per month.The unit selling price is $75 and variable cost per unit is $35.Jenna wishes to earn an operating income of $25,000.Using the contribution martin ratio,calculate the total revenue.(Round intermediate calculations to five decimal places.)
Q5) Fixed costs per unit decrease as production levels decrease. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Variable Costing
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/69628
Sample Questions
Q1) The operating profit calculated using variable costing and absorption costing amounted to $9,270 and $11,250,respectively.There were no beginning inventories.Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year 2014.
A)$10,230
B)$8,250
C)$20,750
D)$25,000
Q2) When setting sales prices in the long run,the sales price must cover the full cost-including fixed costs.
A)True
B)False
Q3) Absorption costing is used to analyze contribution margin.
A)True
B)False
Q4) Calculate the contribution margin and the contribution margin ratio.
A)$8,520; 17.0%
B)$7,550; 15.1%
C)$8,250; 16.5%
D)$7,150; 14.3%
23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Master Budgets
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/69629
Sample Questions
Q1) If the cost of indirect materials needed for production is insignificant,it should not be included in the budgeting process.
A)True
B)False
Q2) June sales were $40,000 while projected sales for July and August were $50,000 and $60,000,respectively.Sales are 40% cash and 60% credit.All credit sales are collected in the month following the sale.Calculate expected collections for July.
A)$36,000
B)$44,000
C)$50,000
D)$54,000
Q3) After comparing budgets with the actual results,corrective action will be taken based on the differences.
A)True
B)False
Q4) The production budget determines the number of units to be produced during the period.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Flexible Budgets and Standard Cost Systems
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/69630
Sample Questions
Q1) Actual purchases of materials for the current month are 10,000 pounds for $48,000.Planned and actual production for the month is 3,000 units.Atlace has issued 10,000 pounds of raw materials to production.The journal entry to record this transaction would be ________.
A)a debit to Work-in-Process Inventory for $28,800,a credit to Raw Materials Inventory for $30,000,and a debit to Direct Materials Efficiency Variance for $1,200
B)a debit to Work-in-Process Inventory for $28,800,a credit to Raw Materials Inventory for $50,000,and a debit to Direct Materials Efficiency Variance for $28,750
C)a debit to Work-in-Process Inventory for $30,000,a credit to Raw Materials Inventory for $50,000,and a debit to Direct Materials Efficiency Variance for $20,000
D)a debit to Work-in-Process Inventory for $50,000,a credit to Raw Materials Inventory for $48,000,and a credit to Direct Materials Efficiency Variance for $50,000.
Q2) Managers who follow the management by exception principle investigate only those variances that are unfavorable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
25
Chapter 24: Responsibility Accounting and Performance Evaluation
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/69631
Sample Questions
Q1) Which of the following is an expanded form of calculating return on investment?
A)Profit margin ratio × Asset turnover ratio
B)Net profit ratio × Inventory turnover ratio
C)Gross profit ratio × EVA
D)Asset turnover ratio × Inventory turnover ratio
Q2) The company uses management by exception to address flexible budget variances.On which product type would the company focus first?
A)40 inch
B)36 inch long
C)36 inch short
D)32 inch
Q3) Cost center responsibility reports generally focus on the static budget variance.
A)True
B)False
Q4) Flexible budgets use budgeted costs at the actual level of activity.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Short-Term Business Decisions
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/69632
Sample Questions
Q1) The fixed manufacturing costs increase by $100,000 for every 500 units produced beyond the maximum capacity of the plant.If a special sales order is accepted for 5,500 sails at a price of $150 per unit,and if the order requires no variable and fixed marketing and administrative costs,what will be the effect on operating income?
A)Operating income increases by $395,000
B)Operating income decreases by $395,000
C)Operating income increases by $385,000
D)Operating income decreases by $385,000
Q2) Which of the following is a major consideration when analyzing a special order?
A)The price must be high enough to cover any incremental costs to fill the order.
B)The company must have a good stock turnover ratio.
C)The profit margin of the special sale must be higher than the regular sales.
D)The sunk costs of the decision must not exceed the irrelevant costs.
Q3) Which product mix will deliver the optimum operating income?
A)4,500 Bedford lamps and 4,000 Lowell lamps
B)12,500 Bedford lamps and zero Lowell lamps
C)8,000 Bedford lamps and 2,250 Lowell lamps
D)7,500 Bedford lamps and 3,000 Lowell lamps
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/69633
Sample Questions
Q1) Caliber Lawnmowers Company is considering the purchase of a new machine costing $800,000.The company's management is estimating that the new machine will generate additional cash flows of $180,000 a year for ten years and have a salvage value of $50,000 at the end of ten years.What is the machine's payback period?
A)4.44 years
B)6.77 years
C)3.33 years
D)5.33 years
Q2) A company is considering an iron ore extraction project that requires an initial investment of $1,000,000 and will yield annual cash flows of $350,263 for 4 years.The company's hurdle rate is 9%.Calculate IRR.
A)15%
B)18%
C)12%
D)10%
Q3) The payback method ignores cash flows that an asset generates,whereas the accounting rate of return includes them.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 28
Chapter 27: Accounting Information Systems
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/69607
Sample Questions
Q1) A general ledger is an accounting journal designed to record one specific type of transaction.
A)True
B)False
Q2) If there is no cash involved in a particular business transaction,then the transaction should be recorded in ________.
A)either cash receipts journal or general journal
B)either sales journal or purchases journal
C)only general journal
D)sales journal,purchases journal,or general journal
Q3) The collection of time records is an accounting information system activity that is classified as a business transaction that involves the sale of merchandise inventory.
A)True
B)False
Q4) The accounts payable subsidiary ledger lists each vendor along with amounts paid to the vendors and the remaining amounts owed to them.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.