Business Analysis and Decision Making
Mock Exam
Course Introduction
Business Analysis and Decision Making equips students with the essential skills and frameworks necessary to evaluate business situations, analyze data, and make informed decisions. The course explores a range of quantitative and qualitative methods used for business analysis, including financial modeling, forecasting, risk assessment, and scenario planning. Emphasis is placed on the practical application of decision-making tools and techniques within organizational contexts, enabling students to identify problems, assess alternatives, and justify strategic choices. Through case studies and real-world examples, students develop critical thinking abilities and learn to communicate their analyses effectively to support business objectives.
Recommended Textbook
Managerial Accounting 16th Edition by Ray H Garrison
Available Study Resources on Quizplus
31 Chapters
4817 Verified Questions
4817 Flashcards
Source URL: https://quizplus.com/study-set/3111 Page 2
Chapter 1: Managerial Accounting and Cost Concepts
Available Study Resources on Quizplus for this Chatper
299 Verified Questions
299 Flashcards
Source URL: https://quizplus.com/quiz/61678
Sample Questions
Q1) The cost of napkins put on each person's tray at a fast food restaurant is a variable cost with respect to how many persons are served.
A)True
B)False
Answer: True
Q2) If 4,000 units are sold,the variable cost per unit sold is closest to:
A) $16.55
B) $11.60
C) $12.65
D) $14.60
Answer: C
Q3) Contribution margin and gross margin mean the same thing.
A)True
B)False
Answer: False
Q4) A fixed cost is a cost whose cost per unit varies as the activity level rises and falls. A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Job-Order Costing: Calculating Unit Production
Costs
Available Study Resources on Quizplus for this Chatper
292 Verified Questions
292 Flashcards
Source URL: https://quizplus.com/quiz/61675
Sample Questions
Q1) The estimated total manufacturing overhead is closest to:
A) $416,003
B) $248,000
C) $664,000
D) $416,000
Answer: C
Q2) Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.The amount of manufacturing overhead applied to Job A is closest to:
A) $28,512
B) $16,632
C) $11,880
D) $17,664
Answer: A
Q3) The costs attached to products that have not been sold are included in ending inventory on the balance sheet.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Job-Order Costing: Cost Flows and External Reporting
Available Study Resources on Quizplus for this Chatper
255 Verified Questions
255 Flashcards
Source URL: https://quizplus.com/quiz/61673
Sample Questions
Q1) The adjusted cost of goods sold that appears on the income statement for July is:
A) $218,000
B) $188,000
C) $203,000
D) $189,000
Answer: D
Q2) The net operating income is:
A) $892,750
B) $765,750
C) $546,750
D) $1,111,750
Answer: C
Q3) In the Schedule of Cost of Goods Sold,Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured Ending finished goods inventory.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Process Costing
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/61670
Sample Questions
Q1) A job-order costing system would be best suited for production of a large quantity of a homogeneous product.
A)True
B)False
Q2) The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:
A) $23,674
B) $43,043
C) $30,130
D) $27,355
Q3) What are the equivalent units for conversion costs for the month in the first processing department?
A) 9,300
B) 8,065
C) 7,400
D) 665
Q4) In a process costing system,costs are traced directly to jobs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Cost-Volume-Profit Relationships
Available Study Resources on Quizplus for this Chatper
260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/61668
Sample Questions
Q1) The break-even point in dollar sales is closest to:
A) $162,000
B) $117,000
C) $0
D) $173,700
Q2) If the variable expense per unit decreases,and all other factors remain the same,the contribution margin ratio will increase.
A)True
B)False
Q3) Using the degree of operating leverage,the estimated percent increase in net operating income as the result of a 20% increase in sales is closest to:
A) 75.00%
B) 1.60%
C) 250.00%
D) 5.33%
Q4) A decrease in the number of units sold will decrease the break-even point. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
7
Chapter 6: Variable Costing and Segment Reporting: Tools for Management
Available Study Resources on Quizplus for this Chatper
291 Verified Questions
291 Flashcards
Source URL: https://quizplus.com/quiz/61666
Sample Questions
Q1) Lean production should result in reduced inventories.If lean production is successfully implemented,the difference in net operating income computed under the absorption and variable costing methods should be reduced.
A)True
B)False
Q2) The unit product cost under absorption costing in Year 1 is closest to:
A) $36.00
B) $21.00
C) $57.00
D) $62.00
Q3) The contribution margin per unit was:
A) $23.80 per unit
B) $31.00 per unit
C) $25.60 per unit
D) $19.00 per unit
Q4) The unit product cost under variable costing is closest to:
A) $34.00
B) $39.00
C) $21.00
D) $26.00
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Super-Variable Costing
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/61667
Sample Questions
Q1) Assume that the company uses a variable costing system that assigns $11 of direct labor cost to each unit that is produced.The unit product cost under this costing system is:
A) $105 per unit
B) $180 per unit
C) $94 per unit
D) $210 per unit
Q2) The unit product cost under super-variable costing is:
A) $180 per unit
B) $105 per unit
C) $94 per unit
D) $210 per unit
Q3) Assume that the company uses an absorption costing system that assigns $22 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.The net operating income under this costing system is:
A) $(102,000)
B) $374,000
C) $(830,000)
D) $(256,000)
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Master Budgeting
Available Study Resources on Quizplus for this Chatper
234 Verified Questions
234 Flashcards
Source URL: https://quizplus.com/quiz/61664
Sample Questions
Q1) If the company has budgeted to sell 17,000 Debs in March,then the average budgeted selling and administrative expenses per unit sold for March is closest to:
A) $12.50 per unit
B) $2.50 per unit
C) $10.00 per unit
D) $17.00 per unit
Q2) The desired ending inventory of Material K for September is:
A) 7,560 yards
B) 8,400 yards
C) 8,700 yards
D) 9,300 yards
Q3) To attain its desired ending cash balance for January,the company should borrow:
A) $17,000
B) $0
C) $30,000
D) $43,000
Q4) The production budget is typically prepared prior to the sales budget.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Flexible Budgets and Performance Analysis
Available Study Resources on Quizplus for this Chatper
417 Verified Questions
417 Flashcards
Source URL: https://quizplus.com/quiz/61663
Sample Questions
Q1) The spending variance for "Refurbishing materials" for March would have been closest to:
A) $1,500 F
B) $500 F
C) $1,500 U
D) $500 U
Q2) The overall revenue and spending variance (i.e.,the variance for net operating income in the revenue and spending variance column on the flexible budget performance report)for May would be closest to:
A) $3,595 F
B) $2,750 F
C) $2,750 U
D) $3,595 U
Q3) The amount shown for revenue in the planning budget for April would have been closest to:
A) $110,200
B) $121,600
C) $112,900
D) $124,579
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Standard Costs and Variances
Available Study Resources on Quizplus for this Chatper
247 Verified Questions
247 Flashcards
Source URL: https://quizplus.com/quiz/61660
Sample Questions
Q1) The labor efficiency variance is labeled favorable (F)if the actual hours used is less than the standard hours allowed for the actual output.
A)True
B)False
Q2) Pleiss Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's standard variable manufacturing overhead rate is $2.40 per machine-hour.The actual variable manufacturing overhead cost for the month was $5,240.The original budget for the month was based on 2,100 machine-hours.The company actually worked 2,270 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,280 machine-hours.What was the variable overhead efficiency variance for the month?
A) $24 Favorable
B) $232 Favorable
C) $208 Favorable
D) $432 Unfavorable
Q3) In general,the production manager is responsible for the materials price variance.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Performance Measurement in Decentralized Organizations
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/61657
Sample Questions
Q1) If a strategy is not working,it should become evident on the balanced scorecard when some of the predicted effects don't occur.
A)True
B)False
Q2) Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
A)True
B)False
Q3) The throughput time was:
A) 30.6 hours
B) 3.2 hours
C) 27.4 hours
D) 12.3 hours
Q4) A manufacturing cycle efficiency (MCE)of less than one is impossible.
A)True
B)False
Q5) Inspection Time is generally considered to be value-added time. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Differential Analysis: The Key to Decision Making
Available Study Resources on Quizplus for this Chatper
203 Verified Questions
203 Flashcards
Source URL: https://quizplus.com/quiz/61655
Sample Questions
Q1) It may be a good decision to replace an asset before its original cost has been fully recovered through increased revenues or decreased costs.
A)True
B)False
Q2) Avoidable costs are irrelevant costs in decisions.
A)True
B)False
Q3) What would be the financial advantage (disadvantage)from dropping product V86O?
A) ($35,000)
B) ($5,000)
C) $35,000
D) $5,000
Q4) Fixed costs may be relevant in a decision.
A)True
B)False
Q5) Variable costs are always relevant costs in decisions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Capital Budgeting Decisions
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/61652
Sample Questions
Q1) (Ignore income taxes in this problem.)Bied's Pharmacy has purchased a small auto for delivery of prescriptions.The auto cost $28,000 and will be usable for seven years.Delivery of prescriptions (which the pharmacy has never done before)should increase revenues by at least $25,000 per year.The cost of these prescriptions will be about $18,000 per year.The pharmacy depreciates all assets by the straight-line method. Required:
a.Compute the payback period on the new auto.
b.Compute the simple rate of return of the new auto.
Q2) (Ignore income taxes in this problem.)An investment project requires an initial investment of $100,000.The project is expected to generate net cash inflows of $28,000 per year for the next five years.These cash inflows occur evenly throughout the year.Assuming a 12% discount rate,the project's payback period is:
A) 0.28 years
B) 3.36 years
C) 3.57 years
D) 1.40 years
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/61650
Sample Questions
Q1) The free cash flow for the year was:
A) $123,000
B) $87,000
C) $142,000
D) $269,000
Q2) Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?
A) a decrease in accounts receivable.
B) an increase in prepaid expenses.
C) a decrease in accrued liabilities.
D) an increase in property, plant and equipment.
Q3) The net cash provided by (used in)investing activities for the year was:
A) $(69)
B) $69
C) $136
D) $(136)
Q4) Free cash flow decreases when a company issues common stock for cash.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
289 Verified Questions
289 Flashcards
Source URL: https://quizplus.com/quiz/61649
Sample Questions
Q1) If the acid-test ratio is less than one,then paying off some current liabilities with cash will increase the acid-test (quick)ratio.
A)True
B)False
Q2) Selling used equipment at book value for cash will:
A) increase working capital.
B) decrease working capital.
C) decrease the debt-to-equity ratio.
D) increase net income.
Q3) The company's operating cycle for Year 2 is closest to:
A) 66.2 days
B) 16.5 days
C) 95.3 days
D) 45.6 days
Q4) The company's price-earnings ratio for Year 2 is closest to:
A) 0.76
B) 10.64
C) 16.52
D) 7.73
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Cost of Quality
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/61679
Sample Questions
Q1) What would be the total appraisal cost appearing on the quality cost report?
A) $130,000
B) $152,000
C) $146,000
D) $219,000
Q2) Which of the following would be classified as an appraisal cost on a quality cost report?
A) Maintenance of test equipment.
B) Re-entering data because of keying errors.
C) Debugging software errors.
D) Warranty repairs and replacements.
Q3) Which of the following would be classified as an appraisal cost on a quality cost report?
A) Quality improvement projects.
B) Supplies used in testing and inspection.
C) Audits of the effectiveness of the quality system.
D) Quality data gathering, analysis, and reporting.
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 17: Activity-Based Absorption Costing
Available Study Resources on Quizplus for this Chatper
20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/61677
Sample Questions
Q1) The unit product cost of product N32Y under the activity-based costing system is closest to:
A) $136.00
B) $76.70
C) $59.30
D) $136.16
Q2) The manufacturing overhead that would be applied to a unit of product I63E under the company's traditional costing system is closest to:
A) $12.80
B) $39.35
C) $76.03
D) $36.68
Q3) Under the traditional costing system,what would be the selling price of one unit of Model #36?
A) $2,536
B) $2,712
C) $4,080
D) $5,506
To view all questions and flashcards with answers, click on the resource link above.
19
Chapter 18: The Predetermined Overhead Rate and Capacity
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/61676
Sample Questions
Q1) The management of Garn Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated activity for the coming year.The Corporation's controller has provided an example to illustrate how this new system would work.In this example,the allocation base is machine-hours and the estimated activity for the upcoming year is 69,000 machine-hours.Capacity is 85,000 machine-hours.All of the manufacturing overhead is fixed and is $4,105,500 per year within the range of 69,000 to 85,000 machine-hours.If the Corporation bases its predetermined overhead rate on capacity but the actual level of activity for the year turns out to be 69,700 machine-hours,the cost of unused capacity shown on the income statement prepared for internal management purposes would be closest to:
A) $772,800
B) $780,640
C) $738,990
D) $41,650
Q2) The predetermined overhead rate based on hours at capacity is closest to:
A) $30.00 per hour
B) $122.50 per hour
C) $32.40 per hour
D) $132.30 per hour
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Job-Order Costing: a Microsoft Excel-Based Approach
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/61674
Sample Questions
Q1) In the Excel,or spreadsheet,approach to recording financial transactions,work in process that has been completed is recorded as a decrease in the Work in Process column and as an increase in the Cost of Goods Sold column.
A)True
B)False
Q2) In the Excel,or spreadsheet,approach to recording financial transactions,the cost of goods sold is recorded as a decrease in the Finished Goods column and as a decrease in the Retained Earnings column.
A)True
B)False
Q3) In the Excel,or spreadsheet,approach to recording financial transactions,an advertising expense paid in cash is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Fifo Method
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/61672
Sample Questions
Q1) In February,one of the processing departments at Wyke Corporation had ending work in process inventory of $15,000.During the month,$264,000 of costs were added to production and the cost of units transferred out from the department was $273,000.The company uses the FIFO method in its process costing system.In the department's cost reconciliation report for February,the total cost to be accounted for would be:
A) $288,000
B) $576,000
C) $39,000
D) $552,000
Q2) The equivalent units for labor and overhead for the month of August are:
A) 85,000 units
B) 95,000 units
C) 87,500 units
D) 82,500 units
Q3) The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no beginning work in process inventory.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 22
Chapter 21: Service Department Allocations
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/61671
Sample Questions
Q1) In the first step of the allocation,the amount of Personnel Department cost allocated to the Family Law Department is closest to:
A) $32,248
B) $70,252
C) $36,336
D) $33,396
Q2) After the allocations,the total amount of overhead cost contained in the Finishing Department will be:
A) $156,800
B) $151,300
C) $154,667
D) $138,450
Q3) The order in which the costs of service departments are allocated will affect the amounts allocated to an operating department when the direct method is used.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 23
Chapter 22: Analyzing Mixed Costs
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/61669
Sample Questions
Q1) The highest and lowest costs are always used to analyze a mixed cost under the high-low method.
A)True B)False
Q2) If 7,800 setups are projected for the next period,total expected overhead cost would be closest to:
A) $156,000
B) $236,000
C) $214,400
D) $276,000
Q3) Least-squares regression selects the values for the intercept and slope of a straight line that minimize the sum of the errors.
A)True
B)False
Q4) The R<sup>2</sup> (i.e.,R-squared)tells us the percentage of the variation in the dependent variable (cost)that is explained by variation in the independent variable (activity).
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Time-Driven Activity-Based Costing: a
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/61665
Sample Questions
Q1) On the Customer Cost Analysis report in time-driven activity-based costing,the Receiving Calls cost assigned to Customer O would be closest to:
A) $117.60
B) $51.20
C) $7.20
D) $28.80
Q2) On the Capacity Analysis report in time-driven activity based costing,the "potential adjustment in the number of employees" would be closest to:
A) 7.00 employees
B) (7.00) employees
C) (6.00) employees
D) 6.00 employees
Q3) On the Capacity Analysis report in time-driven activity based costing,the "potential adjustment in the number of employees" would be closest to:
A) (7.00) employees
B) 7.00 employees
C) 8.00 employees
D) (8.00) employees
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Predetermined Overhead Rates and Overhead
Analysis in a Standard Costing System
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/61662
Sample
Questions
Q1) The denominator activity level in direct labor-hours used by Chuba in setting the predetermined overhead rate was:
A) 7,600 hours
B) 7,800 hours
C) 8,000 hours
D) 7,200 hours
Q2) The fixed manufacturing overhead budget variance is:
A) $1,000 U
B) $3,000 U
C) $2,000 U
D) $2,000 F
Q3) The budget variance for fixed manufacturing overhead is the difference between actual fixed manufacturing overhead costs incurred and the amount of fixed manufacturing overhead applied to work in process.
A)True
B)False
Q4) There can be no volume variance for variable manufacturing overhead.
A)True
B)False
26
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Standard Cost Systems: a Financial Reporting
Perspective Using Microsoft Excel
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/61661
Sample Questions
Q1) Bialas Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standards for direct materials for the company's only product specify 1.6 liters per unit at $7.00 per liter or $11.20 per unit.During the year,the company purchased 36,400 liters of raw material at a price of $7.40 per liter and used 32,060 liters of the raw material to produce 20,100 units of work in process. Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net).All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When the purchase of raw materials is recorded,which of the following entries will be made?
A) ($14,560) in the Materials Quantity Variance column
B) ($14,560) in the Materials Price Variance column
C) $14,560 in the Materials Price Variance column
D) $14,560 in the Materials Quantity Variance column
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Transfer Pricing
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/61659
Sample Questions
Q1) Assume that the Valve Division has enough idle capacity to handle all of the Pump Division's needs.What should be the minimum acceptable transfer price for the valves from the standpoint of the Valve Division?
A) $45 per unit
B) $28 per unit
C) $47 per unit
D) $53 per unit
Q2) Assume that the Valve Division is selling all of the valves it can produce to outside customers.Also assume that $3 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs.What should be the minimum acceptable transfer price for the valves from the standpoint of the Valve Division?
A) $59 per unit
B) $61 per unit
C) $47 per unit
D) $58 per unit
To view all questions and flashcards with answers, click on the resource link above.
28
Chapter 27: Service Department Charges
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/61658
Sample Questions
Q1) How much fixed trucking department cost should be charged to the West Plant at the end of the year?
A) $312,048
B) $315,614
C) $361,600
D) $315,000
Q2) How much Logistics Department cost should be allocated to the West Division at the end of the year?
A) $289,176
B) $229,644
C) $241,167
D) $274,560
Q3) How much (if any)of the electric power plant's actual fixed costs of $65,000 should not be charged to the other departments?
A) $0
B) $10,000
C) $5,000
D) $15,000
To view all questions and flashcards with answers, click on the resource link above.
29
Chapter 28: Pricing Decisions
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/61656
Sample Questions
Q1) From a value-based pricing standpoint what range of possible prices should Tavis consider when setting a price for FI-73?
A) $187,000 Value-based price $278,000
B) $109,000 Value-based price $187,000
C) $109,000 Value-based price $387,000
D) $278,000 Value-based price $387,000
Q2) The target cost per unit is closest to:
A) $44.00
B) $38.50
C) $48.40
D) $35.00
Q3) From a value-based pricing standpoint what is the reference value that Blauvelt should consider when pricing model GZ-29?
A) $205,000
B) $149,000
C) $245,000
D) $447,000
To view all questions and flashcards with answers, click on the resource link above.
30
Chapter 29: The Concept of Present Value
Available Study Resources on Quizplus for this Chatper
16 Verified Questions
16 Flashcards
Source URL: https://quizplus.com/quiz/61654
Sample Questions
Q1) (Ignore income taxes in this problem.)A company wants to have $20,000 at the end of a ten-year period by investing a single sum now.How much needs to be invested in order to have the desired sum in ten years,if the money can be invested at 12%?
A) $3,254.68
B) $3,539.82
C) $6,440
D) $7,720
Q2) The present value of an amount to be received in five years is exactly twice as large as the present value of an equal amount to be received in ten years.
A)True B)False
Q3) The higher the discount rate,the higher the present value of a given future cash flow. A)True B)False
Q4) The present value of a cash flow increases as it moves further into the future. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 30: Income Taxes and the Present Value Method
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/61653
Sample Questions
Q1) The total cash flow net of income taxes in year 2 is:
A) $61,000
B) $70,000
C) $110,000
D) $89,000
Q2) The total cash flow net of income taxes in year 2 is:
A) $80,000
B) $28,000
C) $102,000
D) $130,000
Q3) The income tax expense in year 2 is:
A) $6,000
B) $9,000
C) $15,000
D) $3,000
Q4) The income tax expense in year 2 is:
A) $48,000
B) $9,000
C) $21,000
D) $30,000
To view all questions and flashcards with answers, click on the resource link above. Page 32
Chapter 31: the Direct Method of Determining the Net Cash
Provided by Operating Activities
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/61651
Sample Questions
Q1) Last year Cumberland Corporation reported a cost of goods sold of $120,000.Inventories increased by $35,000 during the year,and accounts payable increased by $20,000.The company uses the direct method to determine the net cash provided by (used in)operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be:
A) $135,000
B) $100,000
C) $155,000
D) $105,000
Q2) The net cash provided by (used in)operating activities for the year was:
A) $187
B) $231
C) $257
D) $201
Q3) The net cash provided by (used in)financing activities for the year was:
A) $(44)
B) $(71)
C) $2
D) $(29)
To view all questions and flashcards with answers, click on the resource link above. Page 33