Corporate Accounting
Final Exam
Course Introduction
Corporate Accounting is a comprehensive course that explores the principles, practices, and regulatory framework governing the accounting processes within corporations. Students will learn about the preparation and analysis of financial statements, accounting for share capital, debentures, and reserves, as well as topics such as amalgamations, internal reconstruction, and liquidation of companies. The course also addresses recent developments in accounting standards, ethical considerations, and the use of technology in financial reporting, equipping students with the skills necessary to manage corporate accounts in a dynamic business environment.
Recommended Textbook
Managerial Accounting 3rd Edition by Karen W. Braun Wendy M Tietz
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15 Chapters
3368 Verified Questions
3368 Flashcards
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Page 2
Chapter 1: Introduction to Managerial Accounting
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187 Verified Questions
187 Flashcards
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Sample Questions
Q1) Which of the following is not an advantage of an ERP system?
A)Streamlining operations
B)Allowing faster response to changes
C)Eliminating separate software systems across the company
D)Lower initial cost than traditional systems
Answer: D
Q2) Companies may adopt which of the following in an attempt to increase their competitive edge?
A)TQM
B)Green initiatives
C)Lean thinking
D)All of the above
Answer: D
Q3) XBRL will be required of both public and private companies.
A)True
B)False
Answer: False
Q4) Discuss at least four differences between financial accounting and managerial accounting.
Answer: 11ea68e5_ab25_ebe6_935e_d57067bb0ed9_TB2868_00
Page 3
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Chapter 2: Building Blocks of Managerial Accounting
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Sample Questions
Q1) An accounting firm would be classified as a A)manufacturing company.
B)merchandising company.
C)simple company.
D)service company.
Answer: D
Q2) London Plastics sells a product for $15.00 per unit. The product requires $4.00 per unit in variable costs to produce it. The company plans on selling 12,000 units of this product. If the monthly fixed costs are $84,000, the total sales revenue will be
A)$70,000.
B)$84,000.
C)$154,000.
D)$180,000.
Answer: D
Q3) The income statements of manufacturing companies are more complex than those of service or merchandising companies.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Job Costing
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331 Flashcards
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Sample Questions
Q1) The ________ substantiates the balance of the raw materials inventory account shown on the company's balance sheet.
A)bill of materials
B)raw materials records
C)materials requisition
D)labor time record
Answer: B
Q2) Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).
A)True
B)False
Answer: False
Q3) Manufacturing overhead is overallocated if the amount
A)estimated for the period is greater than the actual amount incurred.
B)allocated during the period is greater than the actual amount incurred.
C)amount estimated for the period is less than the actual amount incurred.
D)allocated during the period is less than the actual amount incurred.
Answer: B
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Chapter 4: Activity-Based Costing, Lean Operations, and the Costs of Quality
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Sample Questions
Q1) Which term listed below describes costs incurred when the company fails to detect poor quality goods or services before delivery to the customer?
A)Internal failure costs
B)Value-added activity
C)External failure costs
D)Just-in-time production
Q2) With increased competition, managers need more accurate estimates of product costs in order to set prices and to identify the most profitable products.
A)True
B)False
Q3) If a company were to increase its appraisal costs by inspecting more units as the units are are in production (during production), the company's external failure costs would most likely
A)decrease.
B)increase.
C)not be affected.
D)Unable to predict
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Page 6
Chapter 5: Process Costing
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254 Flashcards
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Sample Questions
Q1) The journal entry to record the ultimate completion of the units would include a credit to Finished Goods Inventory.
A)True
B)False
Q2) Which of the following is the last step of the 5-step process costing procedure?
A)Summarize total costs to account for
B)Assign total costs to units completed and to units in ending WIP inventory
C)Compute the cost per equivalent unit
D)Summarize the flow of physical units
Q3) The journal entry to record the use of direct labor in Processing Department #1 would include a credit to Wages Payable.
A)True
B)False
Q4) What are the ending inventory equivalent units for materials if 15,500 units are completed and transferred out and 4,200 remain in ending WIP at 35% complete?
A)3,955
B)4,200
C)1,470
D)5,425
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Chapter 6: Cost Behavior
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Sample Questions
Q1) Regression analysis uses only two of the historical data points for estimating a cost equation.
A)True
B)False
Q2) Under variable costing, all nonmanufacturing costs are treated as inventoriable product costs.
A)True
B)False
Q3) Using account analysis, what type of cost are utilities if you are charged $45 for the first 400 kilowatt hours, $100 for 401-600 kilowatt hours, and $165 + or - for 601-900 kilowatt hours?
A)Fixed
B)Mixed
C)Variable
D)Step
Q4) A contribution margin income statement allows managers to see which costs will change with changes in volume and which costs will remain fixed.
A)True
B)False
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Chapter 7: Cost-Volume-Profit Analysis
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Sample Questions
Q1) The breakeven point may be defined as the number of units a company must sell to do which of the following?
A)Generate a net loss
B)Generate a zero profit
C)Earn more net income than the previous accounting period
D)Generate a net income
Q2) All else being equal, a company with a high operating leverage will have
A)relatively low fixed costs.
B)relatively high variable costs.
C)relatively high contribution margin ratio.
D)relatively low risk.
Q3) The weighted average contribution margin will always be the same as the contribution margin of the highest-volume product.
A)True
B)False
Q4) CVP assumes that inventory levels will not change.
A)True
B)False
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Chapter 8: Relevant Costs for Short-Term Decisions
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Sample Questions
Q1) When setting prices, managers need to consider all costs.
A)True
B)False
Q2) Stockholders' expectations of company profits are affected by which of the following?
A)Industry risk
B)Historical company earnings
C)General economic conditions
D)All of the above
Q3) Indicate whether each item below is a characteristic of a price-taker or a price-setter. Use PT for price-taker and PS for price-setter.
a)Cost-plus pricing
b)Product lacks uniqueness
c)Less competition
d)Target pricing
e)Heavy competition
Q4) Qualitative factors play an important part in make or buy decisions.
A)True
B)False
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Chapter 9: The Master Budget
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Sample Questions
Q1) Sam's Toys budgeted sales of $300,000 for the month of November and cost of goods sold equal to 80% of sales. Beginning inventory for November was $50,000 and ending inventory for November is estimated at $55,000. How much are the budgeted purchases for November?
A)$245,000
B)$65,000
C)$235,000
D)$135,000
Q2) The ________ budget begins with the number of units to be sold.
A)manufacturing overhead
B)direct materials
C)production
D)capital expenditures
Q3) A company sells goods and offers credit terms of "net 30 days." What does this mean for the company that sold the goods?
A)It does not have to ship the goods for 30 days
B)It cannot recognize the sales credit for 30 days
C)It offers a 30% discount for customers that use credit cards.
D)The customer has up to 30 days to pay back the seller for the goods purchased without penalty.
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Chapter 10: Performance Evaluation
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Sample Questions
Q1) Southern Instruments makes calculators for business applications. The budgeted selling price is $120 per calculator, the variable rate is $98 per calculator and budgeted fixed costs are $150,000 per month. What is the budgeted operating income for 15,000 calculators sold in a month?
A)$330,000
B)$1,620,000
C)$1,800,000
D)$180,000
Q2) New product development time would be an example of the A)financial perspective.
B)customer perspective.
C)learning and growth perspective.
D)internal business perspective.
Q3) Raymond Corporation has an ROI of 31%, total assets of $6,300,000, and current liabilities of $820,000. What is Raymond Corporation's operating income?
A)$25,200
B)$2,645,161
C)$20,322,581
D)$1,953,000
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Page 12
Chapter 11: Standard Costs and Variances
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Sample Questions
Q1) The total variable manufacturing overhead variance is composed of the rate variance and the efficiency variance.
A)True
B)False
Q2) The direct materials flexible budget variance can be divided into two variances-the A)price variance and the rate variance.
B)price variance and the standard variance.
C)price variance and the quantity variance.
D)quantity variance and the efficiency variance.
Q3) When a company uses direct materials, the amount of the debit to Work in Process Inventory is based on the standard quantity of the materials that should have been used times the standard price per unit of the materials.
A)True
B)False
Q4) The variable overhead efficiency variance tells management how efficiently manufacturing overhead was used during the period.
A)True
B)False
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Chapter 12: Capital Investment Decisions and the Time Value of Money
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Sample Questions
Q1) In calculating the net present value of an investment in equipment, the required investment and its residual value should be subtracted from the present value of all future cash inflows.
A)True
B)False
Q2) The principal amount, the interest rate, and the number of periods are all factors needed to calculate the time value of money.
A)True
B)False
Q3) Suppose Whole Foods is considering investing in warehouse-management software that costs $600,000, has $60,000 residual value and should lead to cash cost savings of $130,000 per year for its five-year life. In calculating the ARR, which of the following figures should be used as the equation's denominator?
A)$60,000
B)$600,000
C)$130,000
D)$275,000
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Page 14
Chapter 13: Statement of Cash Flows
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Sample Questions
Q1) Which of the following is true about a statement of cash flows?
A)The statement of cash flows is one of the required financial statements for publicly-held companies.
B)The statement of cash flows is prepared at the option of management.
C)The statement of cash flows may be combined with the income statement.
D)The statement of cash flows does not have to be completed if an income statement is prepared.
Q2) If a corporation shows a net loss on its income statement, which of the following is true?
A)The company will not be able to sell stock.
B)The company may still have a net increase in cash.
C)The company will not be able to pay dividends.
D)The company may still have an increase in retained earnings.
Q3) On the statement of cash flows, which of the following would be considered an investing activity?
A)A purchase of treasury stock
B)A sale of land
C)Depreciation of equipment
D)A sale of inventory
Q4) Identify and describe the three sections of the statement of cash flows.
Page 15
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Chapter 14: Financial Statement Analysis
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Sample Questions
Q1) The formula for computing the dividend yield is
A)annual dividend per share of common stock/market price per share of common stock.
B)market price per share of common stock/earnings per share.
C)total stockholders' equity/number of shares of outstanding common stock.
D)(net income - preferred dividends)/number of shares of outstanding common stock.
Q2) Which of the following terms is defined as an analysis of a financial statement that reveals the relationship of each statement item to a specific base?
A)Benchmarking
B)Horizontal analysis
C)Vertical analysis
D)Capital analysis
Q3) A common size statement reports only percentages.
A)True
B)False
Q4) The times-interest-earned ratio is a measure of ability to cover debt.
A)True
B)False
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Chapter 15: Sustainability
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Sample Questions
Q1) Which of the following is not an example of a cost reduction reason to support environmental sustainability?
A)Utilizing tax credits to upgrade to more energy efficient windows
B)Encouraging hotel guests to turn off air-conditioning units when leaving their rooms
C)Requiring employees to print on both sides of a piece of paper
D)Installing motion sensing lights in restrooms
Q2) Which of the following items is most likely to be found on an environmental management accounting report?
A)CEO's salary
B)Public accounting firm's fee for doing financial accounting audit
C)Ratio of recycled trash to total trash
D)Regional sales revenue
Q3) The cost of water used to cool steel beams at a steel mill would be categorized as what type of cost by an environmental management accounting system (EMA)?
A)Materials cost of non-product outputs
B)Materials cost of product outputs
C)Waste and emission control cost
D)Intangible cost
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