Business Accounting
Exam Answer Key
Course Introduction
Business Accounting is an essential course that introduces students to the principles and practices of financial and managerial accounting within a business context. The course covers core topics such as the accounting cycle, preparation and analysis of financial statements, and key accounting concepts like assets, liabilities, equity, revenues, and expenses. Students will also explore budgeting, cost analysis, internal controls, and the regulatory environment of accounting. By understanding how accounting information is used for decision-making, planning, and performance evaluation, students will develop the skills necessary to interpret financial data and support effective management in various organizational settings.
Recommended Textbook
Fundamental Accounting Principles 23rd Edition by John Wild
Available Study Resources on Quizplus
27 Chapters
5793 Verified Questions
5793 Flashcards
Source URL: https://quizplus.com/study-set/3506
Page 2
Chapter 1: Accounting in Business
Available Study Resources on Quizplus for this Chatper
291 Verified Questions
291 Flashcards
Source URL: https://quizplus.com/quiz/69660
Sample Questions
Q1) If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be:
A) Assets increase $4,500 and liabilities decrease $4,500.
B) Assets increase $4,500 and liabilities increase $4,500.
C) Equity decreases $4,500 and liabilities increase $4,500.
D) Equity increases $4,500 and liabilities decrease $4,500.
E) Liabilities decrease $4,500 and assets increase $4,500.
Answer: B
Q2) The assumption that requires that a business be accounted for separately from its owners is the ________ assumption.
Answer: business entity
Q3) If equity is $300,000 and liabilities are $192,000, then assets equal:
A) $300,000.
B) $792,000.
C) $192,000.
D) $492,000.
E) $108,000.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Analyzing and Recording Transactions
Available Study Resources on Quizplus for this Chatper
250 Verified Questions
250 Flashcards
Source URL: https://quizplus.com/quiz/69659
Sample Questions
Q1) What is a trial balance? What is its purpose?
Answer: The trial balance is a list of all of the accounts in the ledger with balances at a point in time presented in debit and credit columns according to their balance. The purpose of the trial balance is to summarize the account totals and to verify the accuracy of the total debits and credits. If the total debits and credits are not equal, it indicates an error in the accounting records. However, even if debits do equal credits this is no guarantee that no errors were made in recording and posting transactions.
Q2) On April 30, Victor Services had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May?
A) $47,000.
B) $5,000.
C) $52,000.
D) $32,000.
E) $57,000.
Answer: A
Q3) Unearned revenue is classified as a(an)__________ on a business's balance sheet.
Answer: liability
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Adjusting Accounts and Preparing Financial Statements
Available Study Resources on Quizplus for this Chatper
245 Verified Questions
245 Flashcards
Source URL: https://quizplus.com/quiz/69658
Sample Questions
Q1) On September 1, Kennedy Company loaned $100,000, at 12% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end?
A) Debit Cash, $4,000; credit Interest Revenue, $4,000.
B) Debit Interest Expense, $4,000; credit Interest Payable, $4,000
C) Debit Interest Expense, $12,000; credit Interest Payable, $12,000
D) Debit Interest Receivable, $12,000; credit Cash, $12,000
E) Debit Interest Receivable, $4,000; credit Interest Revenue, $4,000.
Answer: E
Q2) The accrual basis of accounting:
A) Recognizes expenses when paid in cash.
B) Is generally accepted for external reporting because it is more useful than cash basis for most business decisions.
C) Recognizes revenues when received in cash.
D) Is flawed because it gives complete information about cash flows.
E) Eliminates the need for adjusting entries at the end of each period.
Answer: B
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
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/69657
Sample Questions
Q1) A classified balance sheet organizes assets and liabilities into important subgroups that provide more information to decision makers.
A)True
B)False
Q2) Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.
A)True
B)False
Q3) The aim of a post-closing trial balance is to verify that (1) total debits equal total credits for temporary accounts, and (2) all temporary accounts have zero balances.
A)True
B)False
Q4) The first five steps in the accounting cycle include analyzing transactions, journalizing, posting, preparing an unadjusted trial balance, and recording adjusting entries.
A)True
B)False
Q5) The ________ account is a temporary account used only in the closing process.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Accounting for Merchandising Operations
Available Study Resources on Quizplus for this Chatper
256 Verified Questions
256 Flashcards
Source URL: https://quizplus.com/quiz/69656
Sample Questions
Q1) All of the following statements related to U.S. GAAP and IFRS are true except:
A) Neither system defines operating income.
B) U.S. GAAP offers little guidance about the presentation order of expenses.
C) Accounting for basic inventory transactions is the same under the two systems.
D) Neither system requires separate disclosure of items when their size, nature, or frequency are important.
E) The closing process for merchandisers is the same under both systems.
Q2) Sales returns:
A) Refer to reductions in the selling price of merchandise sold to customers.
B) Represent trade discounts.
C) Are not recorded under the perpetual inventory system until the end of each accounting period.
D) Refer to merchandise that customers return to the seller after the sale.
E) Represent cash discounts.
Q3) Cost of goods sold is also called cost of sales.
A)True
B)False
Q4) A period's beginning inventory is equal to the prior period's ________.
Q5) Describe the key attributes of inventory for a merchandising company.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Inventories and Cost of Sales
Available Study Resources on Quizplus for this Chatper
230 Verified Questions
230 Flashcards
Source URL: https://quizplus.com/quiz/69655
Sample Questions
Q1) Goods that are in transit and were shipped FOB destination should be included in the inventory records of the ________.
Q2) A company uses the retail inventory method and has the following information available concerning its most recent accounting period: \[\begin{array} { | l | l | r |}
\hline& \text { At Cost } & \text { At Retrail } \\
\hline \text { January I beginging inventory } & \$ 167,340 & \$ 304,240 \\
\hline\text { Cost of goods purchased } & 561,850 & 1,021,560 \\
\hline \text { Sales } & & 940,400 \\
\hline\text { Sales returns }&&40,200\\ \hline \end{array}\]
1. Use the retail inventory method to estimate the company's year-end inventory at cost.
2. A year-end physical count at retail prices yields a total inventory of $404,800. Prepare a calculation showing the company's loss from shrinkage at cost and at retail.
Q3) What advantages does a perpetual inventory system have over periodic inventory system?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Accounting Information Systems
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/181917
Sample Questions
Q1) The segment return on assets:
A) Reflects on the profitability of a segment.
B) Is difficult to calculate because companies with traded stock are not required to report segment information.
C) Is applicable whether segments earn profits or losses.
D) Is calculated as segment sales divided by segment average assets.
E) Is calculated as segment average assets divided by segment operating income.
Q2) List the five basic components of accounting information systems and give an example of each.
Q3) Assume that a company uses special journals for sales, purchases, cash receipts, and cash disbursements. A sales return for credit on account would be recorded in the:
A) Direct posting journal.
B) Cash disbursements journal.
C) Cash receipts journal.
D) General journal.
E) Sales journal.
Q4) ________ provide the basic information processed by an accounting system, and can include bank statements, billings to customers, and employee earnings records.
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Cash and Internal Controls
Available Study Resources on Quizplus for this Chatper
218 Verified Questions
218 Flashcards
Source URL: https://quizplus.com/quiz/69653
Sample Questions
Q1) A petty cash fund was originally established with a check for $100. On August 31, which is the period end, the petty cash fund included the following:
\[\begin{array} { | l | r | }
\hline \text { Petty cash receipts: } & \\
\hline \text { Postage } & \$ 43.50 \\
\hline \text { Office supplies } & 11.85 \\
\hline \text { Office equipment repair } & 39.00 \\
\hline \text { Cash } & 4.25 \\
\hline
\end{array}\] Prepare the general journal entry to record the replenishment of the petty cash fund on August 31.
Q2) Insuring assets and requiring all accounting personnel to have CPA licenses are two important principles of internal control.
A)True
B)False
Q3) A sales system with pre-numbered, controlled sales slips is an example of the internal control <sup>principle</sup><sup> </sup><sup>of</sup><sup> </sup><sup>________</sup>.
Q4) What is the purpose of the days' sales uncollected ratio?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Accounting for Receivables
Available Study Resources on Quizplus for this Chatper
215 Verified Questions
215 Flashcards
Source URL: https://quizplus.com/quiz/69652
Sample Questions
Q1) On December 31, of the current year, Spectrum Company's unadjusted trial balance revealed the following: Accounts receivable of $185,600; Sales Revenue of $1,280,000; (75% were on credit), and Allowance for Doubtful Accounts of $1,600 (credit balance). Prepare the adjusting journal entry to record Spectrum's estimate for bad debts assuming:
1. 6.0% of the accounts receivable balance is assumed to be uncollectible.
2. Bad debts expense is estimated to be 1.5% of credit sales.
3. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet after adjustment assuming the percentage of sales method is used.
4. Prepare the entry to write off a $1,500 account receivable on January 1 of the next year.
5. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet immediately after writing off the account in part 4 assuming the percentage of sales method is used.
Q2) The accounts receivable turnover is calculated by dividing ________ by ________.
Q3) Explain the difference between honoring and dishonoring a note receivable.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Plant Assets Natural Resoures and Intangibles
Available Study Resources on Quizplus for this Chatper
243 Verified Questions
243 Flashcards
Source URL: https://quizplus.com/quiz/69651
Sample Questions
Q1) Land improvements are:
A) Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation.
B) Expensed in the period incurred.
C) Included in the cost of the land account.
D) Assets that increase the usefulness of land, and like land, are not depreciated.
E) Also called basket purchases.
Q2) Plant assets refer to nonphysical assets that are used in the operations of a business.
A)True
B)False
Q3) Once the estimated depreciation expense for an asset is calculated:
A) The estimate itself cannot be changed; however, new information should be disclosed in financial statement footnotes.
B) Any changes are accumulated and recognized when the asset is sold.
C) It may be revised based on new information.
D) It cannot be changed, based on the historical cost principle.
E) It cannot be changed, based on the consistency principle.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Current Liabilities and Payroll Accounting
Available Study Resources on Quizplus for this Chatper
206 Verified Questions
206 Flashcards
Source URL: https://quizplus.com/quiz/69650
Sample Questions
Q1) ________ are amounts owed to suppliers for products or services purchased on credit.
Q2) If a company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers, the receipt of cash would be journalized as:
A) Debit Cash $45,000, credit Sales $45,000.
B) Debit Sales $45,000, credit Unearned Revenue $45,000.
C) Debit Prepaid Subscriptions $45,000, credit Sales $45,000.
D) Debit Unearned Revenue $45,000; credit Sales $45,000.
E) Debit Cash $45,000; credit Unearned Revenue $45,000.
Q3) Times interest earned is computed by dividing income before interest expense and income taxes by
Q4) FICA taxes include:
A) Charitable giving.
B) Employee federal income tax.
C) Social Security and Medicare taxes.
D) Employee state income tax.
E) Federal and state unemployment taxes.
Q5) Gross pay less all deductions is called ________.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Accounting for Partnerships
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69649
Sample Questions
Q1) Assets invested by a partner into a partnership become the property of the business.
A)True
B)False
Q2) The journal entry to record Edison's June 1 withdrawal from the partnership if Edison is paid $40,000 for his equity is:
A) Debit Wright, Capital $20,000; Debit Bell, Capital $20,000; credit Cash $40,000.
B) Debit Edison, Capital $40,000; credit Wright, Capital $20,000; credit Bell, Capital $20,000.
C) Debit Edison, Capital $40,000; credit Cash $40,000.
D) Debit Wright, Capital $20,000; Debit Bell, Capital $20,000; credit Edison, Capital $40,000.
E) Debit Cash $40,000; credit Edison, Capital $40,000.
Q3) Kramer and Jones allow Sanders to purchase a 25% interest in their partnership for $50,000 cash. Kramer and Jones both have capital balances of $55,000 each, and have agreed to share income and loss equally. Prepare the journal entry to record the admission of Sanders to the partnership.
Q4) A partner can be admitted into a partnership by ________ or by ________.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Accounting for Corporations
Available Study Resources on Quizplus for this Chatper
228 Verified Questions
228 Flashcards
Source URL: https://quizplus.com/quiz/69648
Sample Questions
Q1) Boron Company is authorized to issue 50,000 shares of $50 par value, 8%, cumulative, fully participating preferred stock, and 750,000 shares of $5 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
May 5 Exchanged 2,200 shares of preferred stock for a building with a market value of $135,000.
July 20 Sold 1,550 shares of preferred stock for $50 cash per share. Dec. 20 Sold 1,000 shares of preferred stock at $52 cash per share.
Q2) What is a corporation? Identify the key advantages and disadvantages of corporations.
Q3) Stockholders' equity consists of paid-in capital and retained earnings. A)True B)False
Q4) The group responsible for and have final authority for managing a corporation's activities is (are) the ________.
Q5) ________ is the amount of income earned per share of a company's outstanding common stock.
Q6) What are the rights generally granted to common stockholders?
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Long-Term Liabilities
Available Study Resources on Quizplus for this Chatper
232 Verified Questions
232 Flashcards
Source URL: https://quizplus.com/quiz/69647
Sample Questions
Q1) Bonds that mature at more than one date with the result that the principal amount is repaid over a number of periods are known as:
A) Registered bonds.
B) Serial bonds.
C) Bearer bonds.
D) Callable bonds.
E) Sinking fund bonds.
Q2) On January 1, Haymark Corporation leased a truck, agreeing to pay $15,252 every December 31 for the six-year life of the lease. The present value of the lease payments, at 6% interest, is $75,000. The lease is considered a capital lease.
(a) Prepare the general journal entry to record the acquisition of the truck with the capital lease.
(b) Prepare the general journal entry to record the first lease payment on December 31. (c) Record straight-line depreciation on the truck on December 31, assuming a 6-year life and no salvage value.
Q3) Explain the amortization of a bond discount. Identify and describe the amortization methods available.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Investments
Available Study Resources on Quizplus for this Chatper
219 Verified Questions
219 Flashcards
Source URL: https://quizplus.com/quiz/69646
Sample Questions
Q1) A company had net income of $350,000 in Year 1 and $520,000 in Year 2. The company had average total assets of $2,500,000 in Year 1 and $3,000,000 in Year 2. Calculate the return on total assets for Year 1 and Year 2. Comment on the results, did the company's performance improve?
Q2) When an investor company owns more than 25% of the voting stock of an investee company, it has a controlling influence.
A)True
B)False
Q3) The two business entities involved in an investment in securities with controlling influence, for which consolidated financial statements are prepared, are known as:
A) Parent and Subsidiary
B) Parent and Investor
C) Both are referred to as partners.
D) Subsidiary and Investee
E) Consolidator and Parent
Q4) Profit margin is net sales divided by net income.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Reporting the Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
234 Verified Questions
234 Flashcards
Source URL: https://quizplus.com/quiz/69645
Sample Questions
Q1) Use the following company information to calculate net cash provided or used by investing activities:
(a) Equipment with a book value of $175,000 and an original cost of $300,000 was sold at a loss of $17,000.
(b) Paid $62,000 cash for a new truck.
(c) Sold land costing $32,000 for $36,000 cash, realizing a $4,000 gain.
(d) Purchased treasury stock for $61,000 cash.
(e) Long-term investments in stock are sold for $41,000 cash, realizing a gain of $3,500.
Q2) Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000. This implies that $30,000 cash was received from the sale.
A)True
B)False
Q3) Financing activities include receiving cash from issuing debt and paying cash dividends to shareholders.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Analysis of Financial Statements
Available Study Resources on Quizplus for this Chatper
233 Verified Questions
233 Flashcards
Source URL: https://quizplus.com/quiz/69644
Sample Questions
Q1) ________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.
Q2) A corporation reports the following year-end balance sheet data. Calculate the following ratios:
(a) working capital
(b) acid-test ratio
(c) current ratio
(d) debt ratio
(e) equity ratio
(f) debt-to-equity ratio
Q3) Analysis of a single financial number is often of limited value. A)True
B)False
Q4) Identify and explain the four building blocks of financial statement analysis.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Managerial Accounting Concepts and Principles
Available Study Resources on Quizplus for this Chatper
244 Verified Questions
244 Flashcards
Source URL: https://quizplus.com/quiz/69643
Sample Questions
Q1) Indirect costs cannot be easily and cost-beneficially traced to a single cost object.
A)True
B)False
Q2) Costs that are capitalized as inventory when they are incurred are called:
A) Fixed costs.
B) General costs.
C) Administrative costs.
D) Period costs.
E) Product costs.
Q3) There are many differences between financial and managerial accounting. Identify and explain at least three of these differences.
Q4) Total quality management (TQM) is a system that acquires inventory and produces only when needed.
A)True
B)False
Q5) ________ rejects the notions of "good enough" or "acceptable" and challenges employees and managers to continuously experiment with new and improved business practices.
Q6) What is managerial accounting and how is it used to aid decision makers?
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Job Order Costing
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/69642
Sample Questions
Q1) Direct materials and direct labor are examples of costs that are debited to the Factory Overhead account in a job costing system.
A)True
B)False
Q2) Predetermined overhead rates are calculated before the start of the accounting period, and are therefore based on estimates.
A)True
B)False
Q3) If a company applies overhead to production with a predetermined overhead rate, a credit balance in the Factory Overhead account at the end of the period means that:
A) The overhead was underapplied for the period.
B) Actual overhead was greater than the overhead amount applied to production.
C) The bookkeeper has made an error because the debits don't equal the credits.
D) The balance will be carried forward to the next period as an overhead cost.
E) Actual overhead incurred was less than the overhead amount applied to production.
Q4) _______________, or customized production, produces products in response to customer orders.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Process Costing
Available Study Resources on Quizplus for this Chatper
229 Verified Questions
229 Flashcards
Source URL: https://quizplus.com/quiz/69641
Sample Questions
Q1) The following journal entry would be made to record the use of $6,100 of direct labor in a production department during the reporting period: \(\begin{array}{llr}
\text { Factory Payroll.} &6,100\\
\text { Goods in Process Inventory } &&6,100\\ \end{array}\)
A)True
B)False
Q2) Hybrid systems contain features of both process and job order operations. A)True B)False
Q3) Calculate the equivalent units of materials.
A) 333,000
B) 250,000
C) 317,000
D) 342,000
E) 294,000
Q4) What is a hybrid costing system? When is a hybrid costing system appropriate for a manufacturer?
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
243 Verified Questions
243 Flashcards
Source URL: https://quizplus.com/quiz/69640
Sample Questions
Q1) The high-low method can be used to estimate the cost equation using just two points.
A)True
B)False
Q2) The following information describes a product expected to be produced and sold by Garrison Company: \(\begin{array}{llr}
\text { Selling price } & \text { \$ 80 per unit } \\
\text { Variable costs } & \text { \$ 32 per unit } \\
\text { Total fixed costs } &\$ 630,000 \end{array}\)
Required:
(a) Calculate the contribution margin ratio.
(b) Calculate the break-even point in dollar sales.
(c) What dollar amount of sales would be necessary to achieve a pretax income of $120,000?
Q3) Define the break-even point of a company.
Q4) Examining strategies that impact several estimates in the CVP analysis is known as
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Master Budgets and Planning
Available Study Resources on Quizplus for this Chatper
214 Verified Questions
214 Flashcards
Source URL: https://quizplus.com/quiz/69639
Sample Questions
Q1) Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $730,000 and cost of goods sold is 40% of sales. The expected selling expenses are $81,000 and the expected general and administrative expenses are $90,000, which includes $23,000 of depreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is:
A) $186,900.
B) $267,000.
C) $84,700.
D) $438,000.
E) $80,100.
Q2) A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a(n):
A) Cash budget.
B) Rolling budget.
C) Operating budget.
D) Income statement.
E) Capital expenditures budget.
Q3) What is a production budget?
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Flexible Budgets and Standard Costs
Available Study Resources on Quizplus for this Chatper
221 Verified Questions
221 Flashcards
Source URL: https://quizplus.com/quiz/69638
Sample Questions
Q1) LJ Co. produces picture frames. It takes 3 hours of direct labor to produce a frame. LJ's standard labor cost is $11.00 per hour. During March, LJ produced 4,000 frames and used 12,400 hours at a total cost of $133,920. What is LJ's labor rate variance for March?
Q2) A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs, $20,000. The operating income expected if the company produces and sells 18,000 units is:
A) $10,000.
B) $34,000.
C) $18,667.
D) $24,000.
E) $16,000.
Q3) Based on predicted production of 25,000 units, Marvel Mix Co. anticipates $175,000 of variable costs and $137,500 of fixed costs. What are the flexible budget amounts of total costs for 28,000 units?
Q4) A management approach that focuses attention on significant differences from plans and gives less attention to areas where performance is reasonably close to standards is known as ________.
Q5) What are the four steps in the effective management of variance analysis?
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Performance Measurement and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
206 Verified Questions
206 Flashcards
Source URL: https://quizplus.com/quiz/69637
Sample Questions
Q1) Which of the following statements is correct concerning the elements of cycle time?
A) Process time is considered non-value-added time.
B) Wait time is considered value-added time.
C) Inspection time is the time spent producing the product.
D) Cycle efficiency is the ratio of non-value-added time to total cycle time.
E) Move time is the time spent moving (1) raw materials from storage to production and (2) goods in process from one factory location to another factory location.
Q2) A_____________ accumulates and reports costs and expenses that a manager is responsible for, including budgeted amounts.
Q3) In a decentralized organization, decisions are made by managers throughout the company rather than by a few top executives.
A)True
B)False
Q4) Joint costs are costs incurred in producing or purchasing a single product.
A)True
B)False
Q5) What is the main difference between a cost center and a profit center?
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Capital Budgeting and Managerial Decisions
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/69636
Sample Questions
Q1) Frederick Co. is thinking about having one of its products manufactured by an outside supplier. Currently, the cost of manufacturing 5,000 units follows:
\[\begin{array} { l r }
\text { Direct material } & \$ 62,000 \\
\text { Direct labor } & 47,000 \\
\text { Variable factory overhead } & 38,000 \\
\text { Fired factory overhead } & 52,000
\end{array}\] If Frederick can buy 5,000 units from an outside supplier for $130,000, it should:
A) Buy the product because the total incremental costs of manufacturing are greater than $130,000.
B) Make the product because factory overhead is a sunk cost.
C) Make the product because the cost of direct material plus direct labor of manufacturing is less than $130,000.
D) Make the product because current factory overhead is less than $130,000.
E) Buy the product because total fixed and variable manufacturing costs are greater than $130,000.
Q2) The ________ is computed by dividing a project's annual after-tax net income by the annual average amount invested.
To view all questions and flashcards with answers, click on the resource link above.
Page 27
Chapter 26: Present and Future Values in Accounting
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/69635
Sample Questions
Q1) The present value of an annuity table can be used to determine the value today of a series of payments to be received in the future.
A)True
B)False
Q2) Molly borrows money by promising to make a single payment of $100,000 at the end of 5 years. How much money is Molly able to borrow if the interest rate is 10%, compounded semiannually? (<sup>PV</sup><sup> </sup><sup>of</sup><sup> </sup><sup>$1</sup>, <sup>FV</sup><sup> </sup><sup>of</sup><sup> </sup><sup>$1</sup>, <sup>PVA</sup><sup> </sup><sup>of</sup><sup> </sup><sup>$1</sup>, and <sup>FVA</sup><sup> </sup><sup>of</sup><sup> </sup><sup>$1</sup>) (Use appropriate factor(s) from the tables provided.)
A) $61,390
B) $62,090
C) $38,550
D) $74,850
E) $78,350
Q3) The interest rate is also called the ________ rate.
Q4) Explain the concept of the future value of a single amount.
Q5) An _ _ is a series of equal payments occurring at equal intervals.
Q6) Explain the concept of the present value of a single amount.
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 27: Activity-Based Costing
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/69634
Sample Questions
Q1) How much overhead cost would be assigned to Product P59G using the activity-based costing system?
A) $54,482.56
B) $5,301.76
C) $10,014.40
D) $3,138.24
E) $154.78
Q2) According to the Activity-based costing system, the total overhead cost allocated to product R32E is:
A) $5,161.30
B) $1,044.80
C) $2,064.00
D) $25,016.00
E) $21,907.20
Q3) A factor that causes the cost of an activity to go up or down is a(n):
A) Contribution factor.
B) Cost driver.
C) Direct factor.
D) Indirect factor.
E) Product cost.
To view all questions and flashcards with answers, click on the resource link above. Page 29