Accounting II Exam Preparation Guide
Course Introduction
Accounting II builds upon foundational principles introduced in introductory accounting courses, delving deeper into topics such as financial statement analysis, receivables, inventories, long-term liabilities, and equity. The course introduces students to more advanced accounting concepts including the preparation and interpretation of cash flow statements, accounting for partnerships and corporations, and an overview of managerial accounting. Emphasis is placed on the application of accounting standards within various business contexts and the development of analytical skills necessary for informed decision-making in a professional environment.
Recommended Textbook
Financial And Managerial Accounting Principles International Edition 9th Edition by Crosson
Available Study Resources on Quizplus
29 Chapters
4463 Verified Questions
4463 Flashcards
Source URL: https://quizplus.com/study-set/3625
Page 2
Chapter 1: Uses of Accounting Information and the Financial Statements
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/72011
Sample Questions
Q1) Partnerships in the United States generate more revenue than sole proprietorships and corporations put together.
A)True
B)False
Answer: False
Q2) Why would it be less risky for a wealthy individual to incorporate his or her business rather than to operate it as a sole proprietorship or partnership?
Answer: With a sole proprietorship or partnership,the owner or owners have unlimited liability.That is,they may be required to use personal assets to satisfy business debts.The liability of a corporate shareholder,however,is limited to his or her investment in the business.
Q3) Which of the following is an example of an investing activity?
A) Purchasing a building
B) Obtaining a bank loan
C) Paying taxes to the government
D) Producing goods and services
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Analyzing Business Transactions
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/72010
Sample Questions
Q1) When a company receives a product previously ordered,a recordable transaction has occurred.
A)True
B)False
Answer: True
Q2) The Office Supplies account is classified as a(n)
A) expense.
B) stockholders' equity account.
C) asset.
D) liability, if the supplies have not yet been paid for.
Answer: C
Q3) Which of the following is not a measurement issue in accounting?
A) Valuation
B) Recognition
C) Evaluation
D) Classification Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Measuring Business Income
Available Study Resources on Quizplus for this Chatper
245 Verified Questions
245 Flashcards
Source URL: https://quizplus.com/quiz/72008
Sample Questions
Q1) A depreciable asset's original cost can typically be obtained by referring to the balance sheet.
A)True
B)False
Answer: True
Q2) Which of the following accounts could not be credited in an adjusting entry?
A) Earned Revenue
B) Prepaid Rent
C) Office Supplies
D) Interest Receivable
Answer: D
Q3) On which financial statement does Income Summary appear?
A) Statement of retained earnings
B) On no financial statement
C) Income statement
D) Balance sheet
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 3: Supplement - Closing Entries and the Work Sheet
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/72009
Sample Questions
Q1) Prepare closing entries for December from the following Income Statement columns of the work sheet of Custom Cleaning Service,Inc.,assuming that a $500 dividend was paid during the period (omit explanations).
\(\begin{array} { | l | r | r | }
\hline & { \text { Income Statement } } \\
\hline & { \text { Debit } } &{ \text { Credit } } \\
\hline \text { Cleaning Revenue } & & 2,600 \\
\hline \text { Wages Expense } & 1,200 & \\
\hline \text { Rent Expense } & 400 & \\
\hline \text { Supplies Expense } & 300 & \\
\hline \text { Income Taxes Expense } & 40 & \\
\hline & 1,940 & 2,600 \\
\text { Net Income } & 660 & \\
\hline & 2,600 & 2,600 \\
\hline
\end{array}\)
Q2) The amount of dividends for the period can be found on the work sheet.
A)True
B)False
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Financial Reporting and Analysis
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/72007
Sample Questions
Q1) General and administrative expenses are a category of operating expense.
A)True
B)False
Q2) Interest paid on debt would be entered on the multistep income statement in the category called
A) selling expenses.
B) other revenues and expenses.
C) general and administrative expenses.
D) operating expenses.
Q3) Using the following data,prepare a multistep income statement for Matthew's Dry Goods for the month ended February 28,2010.
\[\begin{array} { l r }
\text { Cost of Goods Sold } & \$ 15,000 \\
\text { General and Administrative Expenses } & 4,000 \\
\text { Net Sales } & 25,000 \\
\text { Selling Expenses } & 3,500 \\
\text { Income Taxes } & 475
\end{array}\]
Q4) State the definition of a current asset.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 5: The Operating Cycle and Merchandising Operations
Available Study Resources on Quizplus for this Chatper
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/72006
Sample Questions
Q1) An accountant is responsible for the following activities: (1)receiving all cash; (2)maintaining the general ledger; (3)maintaining the accounts receivable subsidiary ledger that includes the individual records of each customer; (4)maintaining the journals for recording sales,purchases,and cash receipts; and (5)preparing monthly statements to be sent to customers.As a service to customers and employees,the company allows the accountant to cash checks of up to $50 with money from the cash receipts.When deposits are made,the checks are included in place of the cash receipts.What weaknesses in internal control exist in this system?
Q2) An effective system of internal control centralizes functions in a single,capable individual.
A)True
B)False
Q3) Computerization has led to a large increase in the use of the perpetual inventory system.
A)True
B)False
Q4) Why is the separation of duties an important control activity in a good system of internal control?
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Inventories
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/72005
Sample Questions
Q1) Use this inventory information for the month of March to answer the following question. \(\begin{array}{rlll}
\text { Mar. } &1& \text { Beginning inventory } & 20 \text { units @ } \$ 76 \\ &7 & \text { Purchase } & 70 \text { units @ } \$ 80 \\ &18 & \text { Sale } & 25 \text { units } \\ &22 & \text { Purchase } & 10 \text { units @ } \$ 88 \\ &29 & \text { Sale } & 40 \text { units } \end{array}\)
Assuming that a perpetual inventory system is used,what is cost of goods sold (rounded)under the average-cost method?
A) $6,020
B) $3,210
C) $5,190
D) $2,810
Q2) Supply-chain management works well in a just-in-time operating environment.
A)True
B)False
Q3) What is the chief objective of supply-chain management? How is it accomplished?
Q4) How is the matching rule applied when accounting for merchandise inventory?
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Cash and Receivables
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/72004
Sample Questions
Q1) Which of the following would be added to the balance per books on a bank reconciliation?
A) Deposits in transit
B) Outstanding checks
C) Service charges
D) Notes collected by the bank
Q2) Under what specific circumstance will application of the direct charge-off method be in accordance with the matching principle?
Q3) The existence of uncollectible accounts is evidence of poor credit policies.
A)True
B)False
Q4) Which of the following statements is true about factoring without recourse?
A) The seller of the receivables is liable upon default of the debtor.
B) The factor's risk is lower than if the factoring were with recourse.
C) An example is the use of major credit cards.
D) The fee will be lower than if the factoring were with recourse.
Q5) Explain the difference between the two methods used to estimate uncollectible accounts and identify which financial statement is emphasized by each method.
Q6) Why do businesses need to keep some currency on hand?
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Current Liabilities and Fair Value Accounting
Available Study Resources on Quizplus for this Chatper
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/72003
Sample Questions
Q1) To determine the payables turnover,one first calculates the days' payable.
A)True
B)False
Q2) If an accrued liability for salaries is not recorded,income for the following period will be overstated.
A)True
B)False
Q3) Which of the following descriptions would not fit the definition of a liability?
A) Obligation to deliver services already paid for
B) Result of past transaction
C) Future obligation for future salary payments
D) Present obligation for future payment
Q4) Vacation pay is charged properly as an expense in the month in which the employee takes a vacation.
A)True
B)False
Q5) The amount of property tax payable is usually an estimated liability for a portion of the year.
A)True
B)False
11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Long Term Assets
Available Study Resources on Quizplus for this Chatper
242 Verified Questions
242 Flashcards
Source URL: https://quizplus.com/quiz/72002
Sample Questions
Q1) Residual value is not relevant when calculating double-declining-balance depreciation.
A)True
B)False
Q2) On January 2,2009,Topanga Company purchased a machine for $90,000.The machine has a five-year estimated useful life and a $6,000 estimated residual value.In addition,the company expects to use the machine 200,000 hours.Assuming that the machine was used 35,000 hours during 2010,complete the following chart.If a figure cannot be determined,indicate so by placing an X in the box.(Show your work.)
\[\begin{array} { | l | c | l }
\hline \text { Method } & \begin{array} { c }
\text { Depreciation Expense for } \\
\text { 2010 }
\end{array} & \text { Carrying Value at 12/31/0 } \\
\hline \text { Straight-line } & & \\
\hline \text { Production } & & \\
\hline \text { Dauble-decliring-balance } & & \\
\hline
\end{array}\]
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 10: Long-Term Liabilities
Available Study Resources on Quizplus for this Chatper
202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/72001
Sample Questions
Q1) When fixed mortgage payments are made,in what way does the interest portion change each month,and why?
Q2) Unamortized Bond Premium is added to Bonds Payable on the balance sheet.
A)True
B)False
Q3) Bond issue costs
A) must be expensed when incurred.
B) must be amortized over the life of the bonds.
C) are recorded in an asset account and not amortized.
D) appear on the balance sheet as a liability.
Q4) When bonds payable are converted into stock,the carrying value of the bonds should be
A) credited to Retained Earnings.
B) credited to contributed capital accounts.
C) debited to Retained Earnings.
D) debited to Loss on Conversion of Bonds.
Q5) Term bonds are of shorter duration than serial bonds.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Contributed Capital
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/72000
Sample Questions
Q1) Why might someone prefer to invest in a company by purchasing preferred stock rather than common stock?
Q2) Which of the following classifications represents the fewest shares of common stock?
A) Outstanding shares
B) Issued shares
C) Treasury shares
D) Impossible to determine
Q3) A corporation records a dividend-related liability
A) on the payment date.
B) on the record date.
C) on the declaration date.
D) when the stock sells ex-dividend.
Q4) When no-par common stock without a stated value is issued for cash,the Common Stock account is credited for an amount equal to the cash proceeds.
A)True
B)False
Q5) Define outstanding stock.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Investments
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/71999
Sample Questions
Q1) Minority interest may be found in the asset section of a consolidated balance sheet.
A)True
B)False
Q2) Eliminations are important because they avoid double counting when consolidated financial statements are prepared.
A)True
B)False
Q3) Which of the following is not a category of investments?
A) Held-to-maturity securities
B) Trading securities
C) Collateral securities
D) Available-for-sale securities
Q4) Most long-term bond investments are classified as held-to-maturity securities.
A)True
B)False
Q5) An eliminating entry is required when a subsidiary owes a parent company but not when the parent owes the subsidiary.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: The Corporate Income Statement and the Statement of Stockholders Equity
Available Study Resources on Quizplus for this Chatper
175 Verified Questions
175 Flashcards
Source URL: https://quizplus.com/quiz/71998
Sample Questions
Q1) The preparation of a statement of stockholders' equity makes which other financial statement unnecessary?
A) Income statement
B) Statement of cash flows
C) Statement of retained earnings
D) Balance sheet
Q2) A synonymous phrase for retained earnings is accumulated earnings.
A)True
B)False
Q3) A corporation should account for the declaration of a 10 percent stock dividend by
A) transferring from retained earnings to contributed capital an amount equal to the legal capital represented by the dividend shares.
B) transferring from retained earnings to contributed capital an amount equal to the market value of the dividend shares.
C) transferring from retained earnings to contributed capital whatever amount the board of directors deems appropriate.
D) making only a memorandum entry in the general journal.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 14: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/71997
Sample Questions
Q1) Noncash investing and financing transactions
A) appear as a separate schedule on the statement of cash flows.
B) appear in either the investing or financing activities section, but not both.
C) are excluded from the statement of cash flows.
D) appear in both the investing and financing activities sections.
Q2) Repayments of accounts payable or accrued liabilities are considered repayments of loans under financing activities.
A)True
B)False
Q3) If the indirect method is used to prepare a statement of cash flows,which of the following would be deducted from net income to arrive at net cash flows from operating activities?
A) Increase in accrued liabilities
B) Increase in income taxes payable
C) Increase in accounts receivable
D) Decrease in prepaid expenses
Q4) On the lines below,provide the components for the calculation of free cash flow.
Q5) Cash flows to assets is measured in "times."
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: The Changing Business Environment - a Managers Perspective
Available Study Resources on Quizplus for this Chatper
131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/71996
Sample Questions
Q1) Comparing the number of bytes processed per nanosecond by each computer is an example of using nonfinancial data analysis.
A)True
B)False
Q2) What steps would a company using TQM take to improve product or service quality?
Q3) When there is an ethical conflict,the management accountant should resign if the immediate supervisor is involved with the conflict.
A)True
B)False
Q4) If a report is urgently needed,some accuracy may have to be sacrificed in the interest of timeliness.
A)True
B)False
Q5) Which of the following is not a result of adopting a just-in-time operating environment?
A) Reduced materials waste
B) Reduced production time
C) Reduced total labor hours
D) Reduced production costs
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Cost Concepts and Cost Allocation
Available Study Resources on Quizplus for this Chatper
189 Verified Questions
189 Flashcards
Source URL: https://quizplus.com/quiz/71995
Sample Questions
Q1) All manufacturing costs that are assigned to completed (but unsold)products should be classified as
A) materials inventory costs.
B) overhead costs.
C) work in process inventory costs.
D) finished goods inventory costs.
Q2) Indirect costs incurred are charged directly to the Work in Process Inventory account.
A)True
B)False
Q3) A predetermined overhead rate times the amount of activity basis equals the overhead cost assigned to the product.
A)True
B)False
Q4) Which of the following types of product costs appear in the financial statements?
A) Normal costs
B) Estimated costs
C) Standard costs
D) Actual costs
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 17: Costing Systems- Job Order Costing
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/71994
Sample Questions
Q1) The basic document for keeping track of costs in a job order costing system is a
A) job order cost card.
B) labor time card.
C) process cost report.
D) materials requisition form.
Q2) The flow of costs into a Work in Process Inventory account is very similar for job order and process costing systems.
A)True
B)False
Q3) When the amount of overhead applied differs from actual,the dollar amount it is usually written off to
A) Cost of Goods Sold.
B) Work in Process Inventory.
C) Finished Goods Inventory.
D) Miscellaneous Expense.
Q4) In a job order costing system,product costs are traced to work cells.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: Costing Systems- Process Costing
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/71993
Sample Questions
Q1) Conversion costs are defined as the combined total of direct materials costs and direct labor costs incurred by a production department.
A)True
B)False
Q2) In process costing,all costs incurred by a department or production process are divided by the equivalent units produced during the period to determine the average cost per unit produced.
A)True
B)False
Q3) When computing the cost per equivalent unit,the FIFO process costing method considers
A) current costs only.
B) current costs plus ending work in process inventory costs.
C) current costs less ending work in process inventory costs.
D) current costs plus beginning work in process inventory costs.
Q4) Separate equivalent units of production usually are calculated for materials and conversion costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 19: Value-Based Systems- Abm and Lean
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/71992
Sample Questions
Q1) Which of the following is an example of a nonvalue-adding activity?
A) Product distribution activity
B) Customer service activity
C) Data processing activity
D) Product design activity
Q2) Comparing activity-based management (ABM)and lean operations,all of the following are correct except
A) both identify value-adding and nonvalue-adding activities.
B) ABM uses a more complex accounting system.
C) both are activity-based systems.
D) JIT focuses on the accuracy of cost assignment.
Q3) In a just-in-time environment,managing the production process focuses on
A) total processing time per unit.
B) allocating overhead more accurately.
C) reducing inventories.
D) units produced per direct labor hour.
Q4) Typically,there are seven levels in the cost hierarchy.
A)True
B)False
Q5) Why is process value analysis not part of the general ledger accounting system?
Page 22
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Cost Behavior Analysis
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/71991
Sample Questions
Q1) Cost-volume-profit analysis is not appropriate for service businesses.
A)True
B)False
Q2) Campground,Inc.,is considering the production and sale of propane lamps.Annual fixed costs associated with the project are expected to total $60,000.In addition,each lamp would sell for $12 and would require $7 in variable costs.Calculate (a)the breakeven point in units,(b)the breakeven point in dollars,(c)the number of lamps that must be sold to earn a profit of $120,000,and (d)the operating income or loss at a sales volume of 16,000 lamps.
Q3) If fixed costs are $80,000,the contribution margin is $25 per unit,and the targeted profit is $30,000,then the required unit sales are
A) 4,400 units.
B) 2,000 units.
C) 4,500 units.
D) 2,500 units.
Q4) Linear approximation is a method of converting nonlinear variable costs into linear fixed costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 21: The Budgeting Process
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/71990
Sample Questions
Q1) A company expects to begin the coming year with 6,000 ceramic pots in finished goods inventory.It expects to sell 85,000 ceramic pots and end the year with 8,000 pots in the finished goods inventory.Four pounds of clay go into each ceramic pot.The company expects to have 4,000 pounds of clay on hand at the beginning of the coming year and wishes to end the year with 6,000 pounds in inventory.
a. Prepare a production budget showing the number ceramic pots that the company must manufacture to carry out these plans.
b. Prepare a direct materials purchases budget showing the number of pounds of clay that the company must purchase during the year.
Q2) A budget need not contain both revenue and expense components.
A)True
B)False
Q3) Once cash receipts and cash payments have been established,the cash increase or decrease is added to the period's beginning balance to arrive at a projected cash balance at period end.
A)True
B)False
Q4) Describe three benefits budgeting provides to an organization's success.
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 22: Performance Management and Evaluation
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/71989
Sample Questions
Q1) A responsibility accounting system ensures that
A) generally accepted accounting principles reporting requirements are met.
B) managers will not be held responsible for items they cannot change.
C) 99 percent of businesses utilizing such a system will be profitable.
D) easy correlations between revenues and costs can be drawn.
Q2) Tying compensation incentives to performance targets decreases the likelihood that the goals of responsibility centers,managers,and the entire organization will be well coordinated.
A)True
B)False
Q3) ROI,residual income,and economic value added all represent performance measures that can be utilized to determine investment center performance.
A)True
B)False
Q4) Identify the following and show the formula for calculating each:
a. ROI
b. RI
c. EVA
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 23: Standard Costing and Variance Analysis
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/71988
Sample Questions
Q1) Service organizations use direct materials,direct labor,and overhead standard costs.
A)True
B)False
Q2) The direct materials price variance is best measured and reported to appropriate management personnel at the time
A) purchased quantities exceed standard order size.
B) quarterly financial statements are prepared.
C) shipments are received and recorded as purchases.
D) direct materials are issued to production areas.
Q3) The difference between actual quantity used and standard quantity multiplied by standard price is the equation for computing the
A) direct labor efficiency variance.
B) direct materials price variance.
C) direct labor rate variance.
D) direct materials quantity variance.
Q4) The importance of direct labor standards and variances has been reduced.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
26
Chapter 24: Short Run Decision Analysis
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/71987
Sample Questions
Q1) Irrelevant costs are costs that are
A) different among alternatives.
B) avoidable costs.
C) opportunity costs.
D) sunk costs.
Q2) Contribution margin information is not relevant for
A) the elimination of unprofitable segment decisions.
B) pricing decisions for special orders.
C) sales mix with resource constraint decisions.
D) determining the amount that sales exceeded fixed costs.
Q3) What are the two steps in the analysis for a sales mix decision?
Q4) Incremental analysis identifies both the benefits and the drawbacks of each alternative.
A)True
B)False
Q5) Outsourcing production or operating activities will help in improving the cash flow by reducing investment in physical assets.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 25: Capital Investment Analysis
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/71986
Sample Questions
Q1) An advantage of the net present value method is that it considers the time value of money.
A)True
B)False
Q2) When considering the time value of money,use compounding to find the __________ value of money now held.
A) present
B) historical
C) future
D) discounted
Q3) Decisions to install new equipment,replace old equipment,and purchase or construct a new building are examples of
A) capital investment decisions.
B) incremental analysis.
C) sales mix analysis.
D) direct costing decisions.
Q4) Capital facilities and projects are not expensive.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 26: Pricing Decisions, incltarget Costing and Transfer Pricing
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/71985
Sample Questions
Q1) Legal constraints and ethical considerations should be considered when developing a company's pricing policy.
A)True
B)False
Q2) Development of a transfer price involves
A) including only costs allocated from corporate levels when determining semi-finished product line costs.
B) direct upper management intervention if different transfer prices are determined by the selling division and the buying division.
C) applying a target profit rate to the unit cost for the semi-finished product.
D) heavy reliance on industry averages.
Q3) The target market for a product or service should be given strong consideration before the final price is chosen.
A)True
B)False
Q4) A negotiated transfer price will be between the negotiation floor and the negotiation ceiling.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 27: Quality Management and Measurement
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/71984
Sample Questions
Q1) Cost control concerns have largely been replaced with concern for nonfinancial measures in JIT settings.
A)True
B)False
Q2) Total quality management requires all business functions to work together to ensure product quality.
A)True
B)False
Q3) The two components of costs of quality are costs of conformance and costs of nonconformance.
A)True
B)False
Q4) Which of the following specific measures of vendor quality would be used when evaluating vendors that supply a company with direct materials?
A) Defect-free material as a percentage of total materials received
B) Number of customer complaints
C) Time it takes to make a product
D) All would be considered to assess vendor quality of direct materials.
To view all questions and flashcards with answers, click on the resource link above. Page 30
Chapter 28: Financial Analysis of Performance
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/71983
Sample Questions
Q1) Does the existence of conglomerates make financial performance evaluation easier or more difficult? Why?
Q2) Dun & Bradstreet publishes
A) data on average ratios and relationships.
B) credit ratings of companies.
C) data on industry norms.
D) all of these.
Q3) Disclosure of segment information is useless in the analysis of diversified companies.
A)True
B)False
Q4) What is the effect of the payment of an account payable on the current ratio and the quick ratio,respectively? (Assume the current ratio was 2.3 times and the quick ratio was 2.1 times before this transaction.)
A) Decrease in current ratio; no effect on quick ratio
B) Increase in current ratio; increase in quick ratio
C) No effect on current ratio; no effect on quick ratio
D) Decrease in current ratio; decrease in quick ratio
To view all questions and flashcards with answers, click on the resource link above.