Introduction to Accounting Final Exam
Questions
Course Introduction
Introduction to Accounting provides a foundational overview of the principles and practices essential for the effective measurement, recording, and communication of financial information within various types of organizations. The course covers core topics such as the accounting cycle, financial statements, double-entry bookkeeping, and basic analysis of financial data. Students will develop an understanding of how accounting supports decision-making processes, ensures regulatory compliance, and contributes to the overall financial health of businesses and nonprofits, preparing them for further studies in accounting and business-related fields.
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) Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?
A) Expense recognition (Matching) principle.
B) Going-concern assumption.
C) Measurement (Cost) principle.
D) Consideration assumption.
E) Business entity assumption.
Answer: A
Q2) A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash. This represents a(n):
A) Operating activity.
B) Financing activity.
C) Investing activity.
D) Revenue activity.
E) Expense activity.
Answer: B
Q3) The term ________ refers to a liability that promises a future outflow of resources. Answer: payable
To view all questions and flashcards with answers, click on the resource link above.
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) BBB Company sends a $2,500 invoice to a customer for catering services it provided during the month. Set up the necessary T-accounts below and show how this transaction would be recorded directly in those accounts.
Answer: 11ea84d2_79f6_3b2b_a79c_511e29135c84_TB2625_00
Q2) Prepaid accounts (also called prepaid expenses) are generally:
A) Decreases in equity.
B) Payments made for products and services that never expire.
C) Promises of payments by customers.
D) Classified as liabilities on the balance sheet.
E) Assets that represent prepayments of future expenses.
Answer: E
Q3) All of the following are asset accounts except:
A) Prepaid insurance.
B) Supplies expense.
C) Accounts Receivable.
D) Equipment.
E) Buildings.
Answer: B
Q4) The posting process is the link between the ________ and the ________.
Answer: journal; ledger
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) In its first year of operations, Grace Company reports the following: Earned revenues of $60,000 ($52,000 cash received from customers); Incurred expenses of $35,000 ($31,000 cash paid toward them); Prepaid $8,000 cash for costs that will not be expensed until next year. Net income under the accrual basis of accounting is:
A) $13,000.
B) $21,000.
C) $25,000.
D) $17,000.
E) None of these options are correct
Answer: C
Q2) An unadjusted trial balance is a list of accounts and balances prepared before adjustments are recorded.
A)True
B)False
Answer: True
Q3) ________ refer to costs incurred in a period that are both unpaid and unrecorded. ________ refer to revenues earned in a period that are both unrecorded and not yet received in cash (or other assets).
Answer: Accrued expenses; accrued revenues (answers must appear in this order)
Page 5
To view all questions and flashcards with answers, click on the resource link above.
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) Flo's Flowers' current ratio is 1.3. The industry average for the current ratio is 1.2. This indicates that Flo's can cover its short term liabilities with its short term assets.
A)True
B)False
Q2) Which of the following statements is incorrect?
A) After the work sheet is completed, it can be used to help prepare the financial statements.
B) On the work sheet, the effects of the accounting adjustments are shown on the account balances.
C) Working papers are useful aids in the accounting process.
D) On the work sheet, the adjusted amounts are sorted into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.
E) A worksheet is not a substitute for financial statements.
Q3) A work sheet contains all of the balances for each account and therefore may be used as a substitute for the set of financial statements.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) A company reported the following information for the month of July:
\[\begin{array} { | l | l | }
\hline \text { Sales } & \$ 50,475 \\
\hline \text { Sales discounts } & 1,235 \\
\hline \text { Sales returns and allowances } & 2,840 \\
\hline \text { Cost of goods sold } & 33,975 \\
\hline
\end{array}\] Required: Calculate this company's gross profit.
Q2) The acid-test ratio:
A) Measures return on assets.
B) Is also called the quick ratio.
C) Is generally greater than the current ratio.
D) Measures profitability.
E) Measures inventory turnover.
Q3) The seller is responsible for paying shipping charges and bears the risk of damage or loss in transit if goods are shipped FOB destination.
A)True
B)False
Q4) Merchandise that customers return to the seller after a sale is referred to as__________ .
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) An advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and does a better job of matching current costs with revenues on the income statement.
A)True
B)False
Q2) What is the value of ending inventory?
A) $2,670.
B) $2,750.
C) $380.
D) $2,730.
E) $440.
Q3) Goods in transit are automatically included in inventory regardless of whether title has passed to the buyer.
A)True
B)False
Q4) The inventory turnover ratio is computed by dividing cost of goods sold by average merchandise inventory.
A)True
B)False
Q5) Identify and describe the four inventory valuation methods.
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 ________ principle requires that an accounting information system report useful, understandable, timely, and pertinent information for effective decision making.
Q2) Flavor Ice Cream received a payment of $7,800 from a credit customer within the discount period. Identify the journal the transaction would be recorded in:
A) Purchases journal.
B) Cash disbursements journal.
C) Cash receipts journal.
D) General journal.
E) Sales journal.
Q3) Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?
A) Flexibility principle.
B) Relevance principle.
C) Compatibility principle.
D) Cost-Benefit principle.
E) Control principle.
Q4) Describe the posting process for special journals.
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) The entry to increase the balance in petty cash from $50 to $75 would include a credit to Petty Cash of $25.
A)True
B)False
Q2) The Sarbanes-Oxley Act (SOX) requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls.
A)True B)False
Q3) On March 1, a company established a $75 petty cash fund. On March 12, the petty cash fund contains $3 in cash and the following paid petty cash receipts: transportation-in on merchandise inventory $14.25; postage, $19.50; and office supplies, $36. Give the general journal entry to reimburse the fund and to increase its amount to $150 on March 12.
Q4) If the Cash Over and Short account has a credit balance at the end of the period, the amount is commonly reported as miscellaneous revenue.
A)True
B)False
Q5) Describe a bank reconciliation and discuss its purpose.
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) Owens Company uses the direct write-off method of accounting for uncollectible accounts receivable. On December 6, Year 1, Owens sold $6,300 of merchandise to the Valley Company. On August 8, Year 2, after numerous attempts to collect the account, Owens determined that the account of the Valley Company was uncollectible.
a. Prepare the journal entry required to record the transactions on August 8.
b. Assuming that the $6,300 is material, explain how the direct write-off method violates the expense recognition (matching) principle in this case.
Q2) Gemstone Products allows customers to use bank credit cards to charge purchases. The bank used by Gemstone Products processes all bank credit cards in exchange for a 3% processing fee and all credit card receipts deposited are credited to the company account on the day of deposit. Assume that on January 18, Gemstone Products sold and deposited $18,000 worth of bank credit card receipts. Prepare the general journal entry to record this transaction.
Q3) Companies can report credit card expense as a reduction in net sales or as a selling expense.
A)True
B)False
Q4) Explain the difference between honoring and dishonoring a note receivable.
To view all questions and flashcards with answers, click on the resource link above.
Page 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) Since goodwill is an intangible asset, it is amortized each year using the straight-line method.
A)True
B)False
Q2) A company purchased a machine on January 1 of the current year for $750,000.
Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 20,000 hours, with a salvage value of $75,000) using each of the below-mentioned methods. During the machine's 5-year life its hourly usage was: 3,000; 4,000; 5,000; 5,000; and 3,000 hours.
\[\begin{array} { l | l | l | l }
& \text { Straight-line } & \text { Uhits-of-production } & \text { Double-declining balance } \\
\hline \text { Year I } & & & \\
\hline \text { Year 2 } & & & \\
\hline \text { Yaar 3 } & & & \\
\hline \text { Year 4 } & & & \\
\hline \text { Year 5 } & & & \\
\hline \text { Totals } & & & \end{array}\]
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) A company's fixed interest expense is $8,000, its income before interest expense and income taxes is $32,000. Its net income is $9,600. The company's times interest earned ratio equals:
A) 0.25.
B) 3.33.
C) 0.30.
D) 4.0.
E) 0.83.
Q2) The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible.
A)True
B)False
Q3) Recording employee payroll deductions may involve:
A) Expenses for the gross wages and salaries.
B) Liabilities to the employer.
C) Liabilities to federal and state governments.
D) Expenses for state unemployment.
E) Expenses for the employer portion of any medical insurance.
Q4) Identify and explain the types of employer payroll 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) Sharon and Nancy formed a partnership by making capital contributions of $130,000 and $195,000 respectively. They predict annual partnership income of $230,000 and are considering the following alternative plans of sharing income and loss: (a) in the ratio of their initial capital investments; or (b) salary allowances of $40,000 to Sharon and $35,000 to Nancy; interest allowances of 12% on their initial capital investments; and the balance shared equally. Assuming that both partners put about the same amount of time into the business, which method of allocating income would be best?
Q2) A partnership has a limited life.
A)True
B)False
Q3) A partnership is an incorporated association of two or more people to pursue a business for profit as co-owners.
A)True
B)False
Q4) At least one partner having a debit balance in his/her capital account at the point of the final distribution of cash is known as a ________.
Q5) __________implies that each partner in a partnership can be called on to personally pay a partnership's debts.
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) Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:
A) Callable preferred stock.
B) Participating preferred stock.
C) Cumulative preferred stock.
D) Convertible preferred stock.
E) Noncumulative preferred stock.
Q2) A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:
A) A debit to Paid-in Capital in Excess of Par Value, Common Stock for $182,000.
B) A credit to Paid-in Capital in Excess of Par Value, Common Stock for $196,000.
C) A debit to Cash for $14,000.
D) A credit to Common Stock for $14,000.
E) A credit to Common Stock for $182,000.
Q3) Shareholders in a corporation have the power to bind the corporation to contracts.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 15
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) On April 1, a company issues 6%, 10-year, $600,000 par value bonds that pay interest semiannually each March 31 and September 30. The bonds sold at $592,000. The company uses the straight-line method of amortizing bond discounts. Prepare the general journal entry to record the first interest payment on September 30.
Q2) When the contract rate is above the market rate, a bond sells at a discount.
A)True
B)False
Q3) Which of the following accurately describes a debenture?
A) A type of bond that can be exchanged for a fixed number of shares of the issuing corporation's common stock.
B) A bond with specific assets pledged as collateral.
C) A type of bond which is not collateralized but backed only by the issuer's general credit standing.
D) A type of bond issued in the names and addresses of the bondholders.
E) A type of bond which requires the bond issuer to create a sinking fund of assets set aside at specified amounts and dates to repay the bonds.
Q4) ________ bonds can be exchanged for a fixed number of shares of the issuing corporation's common stock.
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) Investments in trading securities are always classified as ________ and are reported as ________ on the balance sheet.
Q2) The journal entry to record the sale of the 3,500 shares of stock on November 17 is:
A) Debit Cash $102,550; credit Long-Term Investments-AFS $100,055; credit Gain on Sale of Long-Term Investments $2,495.
B) Debit Cash $102,550; credit Long-Term Investments-Trading $99,855; credit Gain on Sale of Long-Term Investments $2,645.
C) Debit Cash $102,300; credit Long-Term Investments-AFS $100,055; credit Gain on Sale of Long-Term Investments $2,245.
D) Debit Cash $102,550; credit Long-Term Investments-Trading $99,855; debit Gain on Sale of Long-Term Investments $2,645.
E) Debit Cash $102,300; credit Long-Term Investments-AFS $99,855; credit Gain on Sale of Long-Term Investments $2,445.
Q3) Short-term investments in held-to-maturity debt securities are accounted for using the ________.
Q4) Discuss the reasons companies make investments.
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) Information to prepare the statement of cash flows usually comes from three sources: (1) ________, (2) ________, and (3) ________.
Q2) When preparing the operating section of the statement of cash flows using the indirect method, noncash expenses are ________ net income.
Q3) Investing activities include: (a) the purchase and sale of long-term assets, (b) lending and collecting on notes receivable, and (c) the purchase and sale of short-term investments in the securities of other entities, other than cash equivalents and trading securities.
A)True B)False
Q4) Babson reported assets of $13,362 million at January 1 and $13,369 million as of December 31 of the current year. Babson's net cash flows from operations were $2,204 million. Calculate the cash flow on total assets ratio for Babson.
Q5) Explain how cash flows from investing and financing activities are determined.
Q6) Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.
Q7) All cash transactions eventually affect noncash ________ accounts.
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) A corporation reports the following year-end balance sheet data. The company's debt ratio equals: \[\begin{array} { l | r | l | r }
\text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\
\hline \text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\
\hline \text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\
\hline \text { Equipment } & \underline { 145,000 } & \text { Retained earnings } & \$ 90,000 \\
\hline \text { Total assets } & \$ 300,000 & \text { Total liabilities and equity } & \$ 300,000 \\
\hline
Q2) The measurement of key relationships between financial statement items is known as ________.
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) 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.
Q2) Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.
A)True
B)False
Q3) Period costs can refer to expenditures necessary to finish products during the time period.
A)True
B)False
Q4) Indirect costs cannot be easily and cost-beneficially traced to a single cost object.
A)True
B)False
Q5) ________ reveals how many times a company uses its raw materials inventory in production during a period.
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) Omega Contractors manufactures each house to customer specifications. It most likely would use:
A) Process costing.
B) Activity-based costing.
C) A periodic inventory system.
D) Unique costing.
E) Job order costing.
Q2) If overhead is overapplied, it means that individual jobs have not been charged enough overhead during the year and the cost of goods sold reported is too low.
A)True
B)False
Q3) A job cost sheet includes:
A) Direct material, direct labor, applied overhead.
B) Direct materials, estimated overhead, administrative costs.
C) Direct materials, direct labor, selling costs.
D) Direct labor, actual overhead, selling costs.
E) Direct materials, direct labor, operating costs.
Q4) Briefly describe how manufacturing firms dispose of overapplied or underapplied factory overhead.
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 cost per equivalent unit of production for direct materials is:
A) $5.05
B) $4.21
C) $5.85
D) $4.97
E) $9.26
Q2) Briefly explain the conditions under which job order cost accounting systems and process costing systems are commonly applied.
Q3) Equivalent units of production are equal to:
A) Physical units that were started and completed during a period.
B) The number of units that could have been started and completed given the costs incurred during the period.
C) The number of finished units actually produced during a period.
D) The number of units still in process at the end of a period.
E) The number of units started into the process during a period.
Q4) In a process costing system, factory labor costs incurred in a reporting period are presented on the income statement as Factory Labor Expense.
A)True
B)False
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) Philadelphia Co. is considering the production and sale of a new product with the following sales and cost data: unit sales price, $300; unit variable costs, $180; total fixed costs, $270,000; and projected sales, $900,000. What is the margin of safety: (a) In dollar sales? And (b) As a percent of sales?
Q2) While the total amount of variable cost changes with the level of production, variable cost per unit remains constant as volume changes.
A)True
B)False
Q3) Describe how a cost-volume-profit analysis would be performed for a company that sells more than one product when the sales mix is known.
Q4) What is the high-low method? Briefly describe how it is applied.
Q5) When graphing cost-volume-profit data on a CVP chart:
A) Both units and costs are plotted on the horizontal axis.
B) Data points always represent expected future points.
C) Units are plotted on the horizontal axis; costs on the vertical axis.
D) Both units and cost are plotted on the vertical axis.
E) Units are plotted on the vertical axis; costs on the horizontal axis.
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) 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.
Q2) Why is the sales budget usually prepared first?
Q3) Which of the following must be prepared before the direct labor budget?
A) Merchandise purchases budget.
B) Capital expenditures budget.
C) Production budget.
D) Selling expense budget.
E) Budgeted income statement.
Q4) A ________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.
Q5) What are rolling budgets? Why are rolling budgets prepared?
Q6) What is a cash budget? How can management use a cash 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) A company's flexible budget for 12,000 units of production showed total contribution margin of $24,000 and fixed costs, $16,000. The operating income expected if the company produces and sells 15,000 units is:
A) $10,000.
B) $18,667.
C) $14,000.
D) $34,000.
E) $8,000.
Q2) A budget performance report shows budgeted amounts, actual amounts, and differences between budgeted and actual amounts.
A)True
B)False
Q3) The fixed overhead variance can be broken down into the ________ variance and the ________ variance.
Q4) If actual price per unit of materials is greater than the standard price per unit of materials, the direct materials price variance is____________ .
Q5) Define standard costs. How do they assist management?
Q6) 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) A_____________ accumulates and reports costs and expenses that a manager is responsible for, including budgeted amounts.
Q2) Which of the following represents the correct formula for calculating cycle time for a manufacturer?
A) Process time - inspection time + move time + wait time.
B) Process time + inspection time - move time - wait time.
C) Process time + inspection time + move time + wait time.
D) Process time + inspection time + move time - wait time.
E) Process time - inspection time - move time - wait time.
Q3) Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The amount of maintenance expenses that should be allocated to the Assembly Department for the current period is:
A) $ 55,000.
B) $103,000.
C) $104,000.
D) $ 48,000.
E) $110,000.
Q4) A_____________ generates revenues and incurs costs.
Q5) What is the purpose of a responsibility accounting system?
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) An estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at the project's required rate of return and then subtracting the initial amount of the investment, is known as:
A) Unamortized carrying value.
B) Annual net cash flows.
C) Rate of return on investment.
D) Net present value.
E) Payback period.
Q2) A company can buy a machine that is expected to have a three-year life and a $30,000 salvage value. It will be depreciated using the straight-line method. The machine will cost $1,800,000 and is expected to produce a $200,000 after-tax net income to be received at the end of each year. If a table of present values of $1 at 12% shows values of 0.8929 for one year, 0.7972 for two years, and 0.7118 for three years, what is the net present value of the cash flows from the investment, discounted at 12%?
Q3) What is capital budgeting? Why are capital budgeting decisions often difficult and risky?
Q4) A(n) ________ requires a future outlay of cash and is relevant for current and future decision making.
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) Hao made a single investment which, after 5 years invested at 12% compounded semiannually, has accumulated to $214,900. How much did Hao invest initially? (<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) $ 21,486
B) $214,896
C) $120,000
D) $160,584
E) $211,476
Q2) A company has $50,000 today to invest in a fund that will earn 7%. How much will the fund contain at the end of 8 years?
Q3) Define interest.
Q4) Mason Company has acquired a machine from a dealer that requires a payment of $45,000 at the end of five years. This transaction includes interest at 8%, compounded semiannually. What is the value of the machine today?
Q5) 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) In activity-based costing, low-volume complex products are usually undercosted and high volume simpler products are overcosted, because the method fails to reflect the different uses of indirect resources.
A)True
B)False
Q2) Activity cost pools are not a necessary part of the allocation of overhead costs using activity-based costing.
A)True
B)False
Q3) The company produced 4,000 units of product during the period. Direct materials cost $7.30 per unit and direct labor cost $5.45 per unit. How much total cost would be assigned to the 4,000 units of Product P59G using the activity-based costing system?
A) $31,814.40
B) $51,000.00
C) $10,014.40
D) $39,214.40
E) $61,014.40
Q4) Briefly describe the process of activity-based costing.
To view all questions and flashcards with answers, click on the resource link above. Page 29