Business Accounting Practice Questions
Course Introduction
Business Accounting is an essential course that introduces students to the fundamental principles and practices of accounting within a business context. This course covers the preparation, analysis, and interpretation of financial statements, with a focus on how financial data informs decision-making for managers and stakeholders. Students will gain a foundational understanding of concepts such as double-entry bookkeeping, accruals, financial reporting, and the regulatory environment governing accounting practices. By the end of the course, students will be able to apply accounting techniques to evaluate organizational performance and support effective financial planning and control.
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) Due care means carrying out one's professional responsibilities honestly and impartially.
A)True
B)False Answer: False
Q2) Accounting ratios are useful as management performance measures.
A)True
B)False Answer: True
Q3) The Securities and Exchange Commission is an accounting information user with a direct financial interest.
A)True
B)False Answer: False
Q4) An example of a monetary asset is
A) Accounts Receivable.
B) Copyright.
C) Retained Earnings.
D) Land. 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) The declaration and payment of a dividend will
A) decrease net income.
B) increase liabilities.
C) not affect total assets.
D) decrease stockholders' equity.
Answer: D
Q2) Which of the following transactions increases both assets and stockholders' equity?
A) Payment received from a credit customer
B) Received a bank loan
C) Rendered a service, payment not yet received
D) Declared and paid a dividend
Answer: C
Q3) Which of the following errors will cause a trial balance to be out of balance?
A) The bookkeeper forgot to journalize a transaction.
B) The bookkeeper forgot to post a journal entry to the ledger.
C) A credit was posted to an account as a debit.
D) A debit to Office Equipment was incorrectly debited to Office Supplies.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
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) Which of the following is the most difficult to assign to specific time periods?
A) The incurrence of wages expense
B) The accrual of interest
C) The use of equipment
D) The expiration of insurance
Answer: C
Q2) The adjustment entry for the expiration of prepaid advertising,originally recorded as an asset,is
A) Advertising Expense - Debit; Prepaid Advertising - Credit
B) Prepaid Advertising - Debit; Cash - Credit
C) Advertising Expense - Debit; Cash - Credit
D) Prepaid Advertising - Debit; Advertising Expense - Credit Answer: A
Q3) In July,a company pays three years' insurance in advance.The December 31 adjusting entry is
A) Insurance Expense - Debit; Prepaid Insurance - Credit
B) Prepaid Insurance - Debit; Insurance Expense - Credit
C) Insurance Expense - Debit; Cash - Credit
D) Prepaid Insurance - Debit; Cash - Credit Answer: A
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) The amount extended to the Retained Earnings line in the Balance Sheet column of the work sheet is the amount to be reflected for Retained Earnings on the balance sheet.
A)True
B)False
Q2) The amount of Retained Earnings for the balance sheet is obtained from the A) statement of retained earnings.
B) Adjusted Trial Balance columns of the work sheet.
C) Balance Sheet columns of the work sheet.
D) Trial Balance columns of the work sheet.
Q3) In preparing closing entries,which of the following columns of the work sheet are the most helpful?
A) Adjustments columns
B) Income Statement columns
C) Adjusted Trial Balance columns
D) Balance Sheet columns
Q4) The work sheet is prepared after the formal adjusting and closing entries.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
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) Using the following amounts taken from the balance sheet and income statement of a business,compute the measures listed below.After each answer,write "L" if it is a measure of liquidity or "P" if it is a measure of profitability.Round to two decimal places. \[\begin{array} { l r l r }
\text { Current assets } & \$ 6,000 & \text { Average stockholders' equity } & \$ 15,000 \\
\text { Average total assets } & 30,000 & \text { Net sales } & 19,500 \\
\text { Current liabilities } & 4,500 & \text { Net income } & 2,400 \\
\text { Long-term liabilities } & 10,500 & & \end{array}\]
a. Return on assets
b. Working capital
c. Return on equity
d. Current ratio
Q2) The convention of consistency pertains to the use of the same accounting principles by firms in the same industry.
A)True
B)False
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) A large discount chain,like Wal-Mart or Target,most likely would use the periodic inventory system to maintain control of its inventory.
A)True
B)False
Q2) A very small company would have the most difficulty in implementing which of the following internal control activities?
A) Separation of duties
B) Periodic independent verification
C) Limited access to assets
D) Sound personnel procedures
Q3) The net cost of purchases is found by deducting freight-in from net purchases.
A)True
B)False
Q4) A retail operation would not have to take a physical inventory if it uses a perpetual inventory system.
A)True
B)False
Q5) Under a perpetual inventory system,is it necessary to take a physical inventory at the end of the period? Why or why not?
To view all questions and flashcards with answers, click on the resource link above. Page 8
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 June to answer the following question. \(\begin{array}{rlll}
\text { June }&1 & \text { Beginning inventory } & 10 \text { units @ } \$ 120 \\
&5 & \text { Purchase } & 60 \text { units @ } \$ 112 \\ &14 & \text { Sale } & 40 \text { units } \\ &21 & \text { Purchase } & 30 \text { units @ } \$ 116 \\ &30 & \text { Sale } & 28 \text { units } \end{array}\)
Assuming that a periodic inventory system is used,what is cost of goods sold on a LIFO basis?
A) $7,696
B) $7,736
C) $3,664
D) $3,704
Q2) In periods of rising inventory prices,the LIFO method will result in a higher inventory valuation than will the average-cost method.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
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) If the amount of uncollectible accounts expense is understated at year end,
A) net Accounts Receivable will be understated.
B) total liabilities will be overstated.
C) net income will be understated.
D) Allowance for Uncollectible Accounts will be understated.
Q2) The balance of Accounts Receivable,net of the allowance account,is $35,000 before the write-off of a $2,800 account.What is the Accounts Receivable balance,net of the allowance account,after the write-off?
A) $35,000
B) $32,200
C) $2,800
D) $37,800
Q3) The sale or transfer of accounts receivable to raise funds is called A) discounting.
B) collateralizing.
C) pledging.
D) factoring.
Q4) The higher the receivable turnover,the lower the days' sales uncollected.
A)True
B)False
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) Calculate answers to the following questions using future value and/or present value tables.
a. If an accumulation of $1,000 is desired at the end of four years, what bank deposit must be made now to accomplish that goal, assuming 10 percent interest compounded annually?
b. A deposit of $600 made at the end of every six months for five years would grow to what amount, assuming 8 percent interest compounded semiannually. Round amounts to the nearest dollar.
Q2) Dougan Company manufactures and sells widgets.Each widget costs $60 and sells for $100.Each widget carries a warranty that provides for free replacement if it fails for any reason during the next 36 months.In the past,4 percent of the widgets have had to be replaced under the warranty.During May,Dougan sold 2,000 widgets and replaced 150 under warranty.Calculate the product warranty expense for the month.Show your computation.
Q3) The most common examples of commitments are leases and purchase agreements.
A)True
B)False
Q4) Under what circumstances is a contingent liability reflected in the accounting records as though an actual liability exists?
To view all questions and flashcards with answers, click on the resource link above. Page 11
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) On January 1,2005,Mal's Pizza purchased for $24,000 a delivery truck that will be driven an estimated 120,000 miles.The truck has an estimated useful life of eight years and an estimated residual value of $6,000.Calculate the following amounts: (a)depreciation expense for 2010,under the production method (assume that 17,000 miles were driven that year); (b)the accumulated depreciation after the truck has been used for five and one-half years,under the straight-line method; and (c)depreciation expense for 2007,under the double-declining-balance method.
Q2) When an asset lasts longer than its estimated useful life,depreciation no longer should be recorded past the point at which its carrying value equals its residual value.
A)True
B)False
Q3) Leasehold improvements are not subject to any form of cost allocation.
A)True
B)False
Q4) A building not currently used because economic conditions have limited a company's expansion is classified properly as property,plant,and equipment.
A)True
B)False
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 bonds are converted to common stock,what is the basis for recording (valuing)the stock issued?
Q2) A capital lease represents both an asset and a liability.
A)True
B)False
Q3) When bonds are sold at face value between interest dates,the result is a debit to the Cash account that
A) equals face value.
B) depends on the circumstances.
C) is less than face value.
D) exceeds face value.
Q4) Under a capital lease,the lessor,not the lessee,should record depreciation. A)True
B)False
Q5) Under a defined benefit pension plan, A) actuarial computations are unnecessary.
B) accounting for annual pension expense is simple.
C) retirement payments are based on the amount accumulated in the pension fund.
D) the employer guarantees the employees certain benefits upon retirement.
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) One disadvantage of a corporation is the lack of mutual agency.
A)True
B)False
Q2) The following information relates to the number of common shares of the Nelly Corporation:
\(40,000 \text { Authorized shares }\quad
15,000 \text { Unissued shares } \quad
2,500 \text { Treasury shares }\) Calculate the number of outstanding shares from the information given.Show your calculations.
Q3) A disadvantage of the corporate form of business is A) lack of mutual agency.
B) professional management.
C) ease of transfer of ownership.
D) tax treatment.
Q4) Compensation expense related to employee stock options is recorded on a corporation's books only when the option price exceeds the current market price at the date the options are granted.
A)True
B)False
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) Platek Company buys 100 percent of the stock of Brendel Company for $180,000.Brendel Company has contributed capital of $105,000 and retained earnings of $75,000.The consolidated financial statements would contain
A) minority interest and goodwill.
B) minority interest but not goodwill.
C) goodwill but not minority interest.
D) neither minority interest nor goodwill.
Q2) When a parent company owns 100 percent of the outstanding stock of a subsidiary,Goodwill from Consolidation will appear on the consolidated balance sheet when the
A) cost of the parent's investment exceeds the book value and the fair value of the investee's net identifiable assets.
B) cost of the parent's investment exceeds the book value of the parent's net assets.
C) book value of the parent's net assets exceeds the fair value of the parent's net assets.
D) fair value of the investee's net identifiable assets exceeds the cost of the parent's investment.
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) A stock dividend exceeding 20 to 25 percent is properly treated as a stock split. A)True
B)False
Q2) Distinguish between cash and retained earnings.
Q3) All of the following are synonymous with retained earnings except
A) retained income.
B) earnings retained for use in the business.
C) cash fund for future expansion.
D) accumulated earnings.
Q4) Deferred Income Taxes is classified as an asset when it has a debit balance.
A)True
B)False
Q5) A company had 48,000 shares outstanding from January 1 to June 1 and 72,000 shares outstanding from June 1 to December 31.What is the weighted-average number of shares used in earnings per share calculations?
A) 58,000
B) 60,000
C) 62,000
D) 64,000
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) The financing activities section of the statement of cash flows does not include any transactions or activities from the income statement but does take into account stockholders' equity.
A)True
B)False
Q2) For purposes of preparing the statement of cash flows,cash is defined as including both cash and cash equivalents.
A)True
B)False
Q3) Royer Corporation engaged in this transaction: Paid employee wages. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.
A) Financing activities section
B) Investing activities section
C) Does not represent a cash flow
D) Operating activities section
Q4) Why does the acquisition of land in exchange for common stock qualify as a noncash investing and financing transaction?
Q5) On the lines below,provide the components for the calculation of free cash flow.
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) Give two examples of each stage in the management process.
Q2) Which of the following is not a key question to be addressed when preparing a report?
A) Who?
B) What?
C) When?
D) Where?
Q3) Management accounting complements each stage in the management process.
A)True
B)False
Q4) JIT,TQM,ABM,and TOC all make a contribution to
A) encourage competition.
B) eliminate all costs.
C) continuous improvement.
D) assign costs differently than before.
Q5) Evaluating employees based upon their performance is an example of developing benchmarks.
A)True B)False
Q6) Give two examples of nonfinancial performance measures. Page 18
To view all questions and flashcards with answers, click on the resource link above.
Page 19
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) Which of the following is not a product cost?
A) Depreciation of office furniture
B) Overhead
C) Direct labor
D) Direct materials
Q2) Some period costs can be found in inventory accounts on the balance sheet.
A)True
B)False
Q3) By using a predetermined overhead rate and an allocation base,such as direct labor dollars or hours,one can assign overhead costs by debiting the Overhead account and crediting the Work in Process Inventory account.
A)True
B)False
Q4) Which of the following is not considered important in the proper allocation of overhead costs?
A) Forecasting production activity
B) Estimating total overhead costs
C) Selecting an appropriate activity base
D) Estimating the selling price of the product
To view all questions and flashcards with answers, click on the resource link above. Page 20
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) Costs assigned to the building of a house should appear on the income statement when
A) the house is completed.
B) the house is sold.
C) the purchase order to manufacture the house is received.
D) cash is collected for the sale of the house.
Q2) Product costs appear on the income statement in the form of
A) cost of goods sold.
B) materials inventory.
C) sales commissions.
D) none of these.
Q3) Applied overhead exceeds actual overhead when the
A) Overhead account has a credit balance.
B) journal entry to account for the difference involves a debit to Cost of Goods Sold.
C) Overhead account has a debit balance.
D) company has overspent in the overhead cost area.
Q4) Unique products are produced in a continuous flow production process.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
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) Separate equivalent units of production usually are calculated for materials and conversion costs.
A)True
B)False
Q2) The total costs that will be transferred into the Finished Goods Inventory account during the current period are
A) $144,768.
B) $180,050.
C) $164,736.
D) $160,080.
Q3) Because process costing is normally associated with a continuous production flow,products that are in process at the beginning of the period are assumed to be the first products completed during the current period.
A)True
B)False
Q4) A process costing system is used by companies that manufacture large amounts of similar products or liquid products.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
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) Under new methods of management,attempts to continuously improve the work environment come from
A) top management.
B) each department manager.
C) the board of directors.
D) everyone in the company.
Q2) Backflush costing aims at decreasing waste in the production process.
A)True
B)False
Q3) The Yeva Company produces children's automobile car seats.The company recently changed from a traditional production environment to just-in-time work cells.The company's car seats are widely distributed in popular retail stores.Would you recommend the use of backflush costing or ABM/ABC for tracking product costs? Explain your choice of system.
Q4) In a just-in-time environment,costs associated with product movement and storage typically decrease,whereas costs of inspection and queue time typically increase.
A)True
B)False
Q5) How can activity-based systems help managers in a global marketplace?
To view all questions and flashcards with answers, click on the resource link above. Page 23
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) Indicate whether each of the following costs of productive output is usually variable (V)or fixed (F):
a. Machine operator's hourly wages
b. City operating license
c. Machine helper's wages
d. Wiring used in radios
e. Indirect materials
f. Property insurance
g. Gasoline for delivery truck
h. Real estate taxes
Q2) Adding the contribution margin as a component to cost-volume-profit computations will not change the resulting amount of breakeven units in a given situation.
A)True
B)False
Q3) "Breakeven" is the point at which a company will begin to earn a profit. A)True
B)False
Q4) Is breakeven analysis a tool that can be used for a service-oriented business? Explain your answer.
To view all questions and flashcards with answers, click on the resource link above. Page 24
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 master budget consists of a set of operating budgets and a set of financial budgets for a specific accounting period.
A)True
B)False
Q3) Budgets assign resources and the responsibility to use them wisely to managers who are held accountable for their results.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 25
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) What is being measured by managers is the same as the actual measures used to monitor performance.
A)True
B)False
Q2) Economic value added is synonymous with shareholder wealth created by an investment center.
A)True
B)False
Q3) A responsibility center whose manager is held accountable for both revenues and costs and for the resulting operating income is called a profit center.
A)True
B)False
Q4) Which of the following is a type of incentive compensation?
A) Health insurance
B) Profit-sharing plans
C) Pension plans
D) Flexible spending programs
Q5) Identify and describe the five different responsibility centers,and provide one example of each.
To view all questions and flashcards with answers, click on the resource link above. Page 26
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) Using the following information,compute the standard unit cost of a 20 pound bag of dog food: \(\begin{array} { l }
\text { Direct materials quantity standard}& \text { 20 pounds per unit}\\
\text { Direct materials price standard}& \text {\( \$ 0.02 \) per pound }\\
\text {Direct labor time standard }& \text {0.1 hour per unit }\\
\text { Direct labor rate standard}& \text {\( \$ 11.60 \) per hour }\\
\text {Variable overhead rate standard }& \text {\( \$ 11.60 \) per hour }\\
\text {Fixed overhead rate standard }& \text {\( \$ 2.50 \) per machine hou: }\\
\text { Fixed overhead rate standard}& \text {\( \$ 1.50 \) per machine hou: }\\
\text {Machine hour standard }& \text { 0.25 hours per unit}\\ \end{array}\)
A) $2.56
B) $2.22
C) $2.16
D) $2.81
Q2) Discuss the keys to preparing a performance report based on standard costs and related variances.
To view all questions and flashcards with answers, click on the resource link above. Page 27
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) Sunk costs are omitted from decision analysis
A) always.
B) never.
C) sometimes.
D) only if immaterial.
Q2) Managers rely strictly on financial information when faced with decisions.
A)True
B)False
Q3) Which of the following could not be a relevant cost in deciding whether or not to eliminate a producing department?
A) The current residual value of the department's equipment
B) The salary of a supervisor who would be laid off
C) The carrying value of the department's equipment
D) Revenue that could be generated by renting out the department's space
Q4) The costs incurred beyond the split-off point are called
A) split-off point costs.
B) incremental costs.
C) joint product costs.
D) by-product costs.
Q5) What are the two steps in the analysis for a sales mix decision?
Page 28
To view all questions and flashcards with answers, click on the resource link above.
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) The key steps followed by the managers in capital investment analysis include all of the following except
A) identification of capital investment needs
B) preliminary screening
C) formal requests for capital investments
D) sunk costs.
Q2) To analyze a capital investment using the accounting rate-of-return method,one can use an estimated amount for the annual net income.
A)True
B)False
Q3) Smile Industries capital structure consists of $1,000,000 of debt at 6 percent interest and 1,500,000 of stockholders equity at 2 percent. The proportion of Equity in the total capital structure is
A) 40%
B) 60%
C) 100%
D) 15%
Q4) Why the residual value of equipment is relevant when considering the replacement of equipment?
To view all questions and flashcards with answers, click on the resource link above. Page 29
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) A target cost is an anticipated cost that should be achieved at a midpoint in the product's life cycle.
A)True
B)False
Q2) A transfer price can be based on a market price for products that has been reduced in the process of bargaining by division managers.
A)True
B)False
Q3) Which of the following items should not be used to measure the performance of a manager whose division "sells" to other divisions of the company exclusively?
A) Negotiated profit margin within the transfer prices
B) Labor efficiency rates
C) Corporate overhead allocations
D) Variable costs of production
Q4) Within the relevant range,fixed and variable costs are fairly predictable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 30
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) Woodruff Company manufactures custom-designed medical equipment for paramedic units.In June 2010,the company incurred the following costs of quality:
\[\begin{array} { | l r |}
\hline\text { Product design costs } &\$ 12,800 \\
\text { Product recall costs } & 6,700 \\
\text { Product simulation costs } & 20,500 \\
\text { Product testing costs } & 8,000 \\
\text { Product warranty clains } & 3,000 \\
\text { Scrap and rewark costs } & 5,000 \\
\hline
\end{array}\]
Total quality costs of nonconformance for June were
A) $11,700.
B) $14,700.
C) $22,700.
D) $15,700.
Q2) At present,very few countries belong to the ISO.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 31
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) Companies in the same industry are required to use the same methods to value inventory and to depreciate similar assets.
A)True
B)False
Q2) Profitability is the ability to pay bills when due and to meet unexpected needs for cash.
A)True
B)False
Q3) The comparison of financial measures or ratios of the same company over a period of times is superior to the use of rule-of-thumb measures.
A)True
B)False
Q4) Asset turnover is most closely associated with a company's liquidity position. A)True
B)False
Q5) For details about the financial histories of companies,one could consult publications of Moody's and Standard & Poor's.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 32