Introduction to Managerial Accounting Solved Exam Questions
Course
Introduction
Introduction to Managerial Accounting provides students with an in-depth understanding of how accounting information is used by managers to plan, control, and make decisions within organizations. The course covers key topics such as cost behavior, budgeting, performance evaluation, and the use of accounting data in strategic decision-making. Emphasis is placed on the analysis and interpretation of financial information relevant to internal management, including techniques like variance analysis, job-order costing, and activity-based costing. By the end of the course, students will develop analytical skills necessary to solve real-world managerial problems and support effective business management.
Recommended Textbook
Financial and Managerial Accounting Information for Decisions 5th Edition by John J Wild
Available Study Resources on Quizplus
28 Chapters
5011 Verified Questions
5011 Flashcards
Source URL: https://quizplus.com/study-set/3645 Page 2
Chapter 1: Introducing Accounting in Business
Available Study Resources on Quizplus for this Chatper
249 Verified Questions
249 Flashcards
Source URL: https://quizplus.com/quiz/72494
Sample Questions
Q1) A company paid its landlord $15,000 cash for this month's rent.Enter the appropriate amounts for this transaction into the accounting equation format shown below:
\[\begin{array} { | c | c | c | }
\hline \text { Assets } = & \text { Liabilities } + & \text { Equity } \\
\hline & & \\ \hline \end{array}\]
Answer: \[\begin{array} { | c | c | c | }
\hline \text { Assets } = & \text { Liabilities } + & \text { Equity } \\
\hline - \$ 15,000 & 0 & - \$ 15,000 \\ \hline \end{array}\]
Q2) Expenses decrease retained earnings and are the costs incurred to earn revenues. A)True B)False
Answer: True
Q3) Identify the three basic forms of business organizations. Answer: The three basic forms of business organizations are sole proprietorships,partnerships,and corporations.
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Analyzing and Recording Transactions
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/72493
Sample Questions
Q1) The account used to record the transfers of assets from a business to its stockholders is:
A) A revenue account
B) The dividends account
C) Common stock account
D) An expense account
E) A liability account
Answer: B
Q2) On April 30,Holden Company had an Accounts Receivable balance of $18,000.During the month of May,total credits to Accounts Receivable were $52,000 from customer payments.The May 31 Accounts Receivable balance was $13,000.What was the amount of credit sales during May?
A) $5,000
B) $47,000
C) $52,000
D) $57,000
E) $32,000
Answer: B
Q3) Revenues and expenses are two categories of ____________________ accounts.
Answer: equity
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
232 Verified Questions
232 Flashcards
Source URL: https://quizplus.com/quiz/72492
Sample Questions
Q1) If a company records prepayment of expenses in an asset account,the adjusting entry would:
A) Result in a debit to an expense and a credit to an asset account.
B) Cause an adjustment to prior expense to be overstated and assets to be understated.
C) Cause an accrued liability account to exist.
D) Result in a debit to a liability and a credit to an asset account.
E) Decrease cash.
Answer: A
Q2) Profit margin can also be called return on sales.
A)True
B)False Answer: True
Q3) Plant assets and intangible assets are usually long-term assets that are used to produce or sell products and services.
A)True
B)False
Answer: True
Q4) Profit margin equals ___________________ divided by net sales. Answer: net income
5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Accounting for Merchandising Operations
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/72491
Sample Questions
Q1) ________________________ refers to products that a company owns and intends to sell.
Q2) A company purchased $8,750 worth of merchandise,with terms of 2/10,n/30.The invoice was paid within the cash discount period.Accordingly,the company received a cash discount of _______________.
Q3) The profit margin ratio is gross margin divided by total assets.
A)True
B)False
Q4) Under the perpetual inventory system,the cost of merchandise purchased is accumulated in the Merchandise Inventory account.
A)True
B)False
Q5) Accounting and reporting for merchandise purchases and sales are treated identically under both GAAP and IFRS.
A)True
B)False
Q6) The __________________ inventory system continually updates accounting records for merchandise transactions for the amounts of inventory available for sale and inventory sold.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Inventories and Cost of Sales
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72490
Sample Questions
Q1) In a period of rising prices,FIFO usually gives a lower taxable income,which leads to an advantage when it comes to paying income tax.
A)True
B)False
Q2) In applying the lower of cost or market method to inventory valuation,market is defined as:
A) Historical cost
B) Current replacement cost
C) Current sales price
D) FIFO
E) LIFO
Q3) If the _______________ is responsible for paying the freight,ownership of merchandise inventory passes when the goods arrive at their destination.
Q4) A company has inventory with a market value of $217,000 and a cost of $241,000.According to the lower of cost or market,the inventory should be written down to $217,000.
A)True
B)False
Q5) What costs are assigned to merchandise inventory?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Cash and Internal Controls
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72489
Sample Questions
Q1) A customer's check is deposited by a company.The check is uncollectible because the balance in the customer's account is not large enough to cover the check.This check is referred to as a __________ check.
Q2) Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.
A)True
B)False
Q3) ________________ includes currency,coins,and amounts on deposit in checking accounts and many savings accounts.
Q4) A ________ is an internal document (or file)that is used to accumulate information to control cash disbursements.
Q5) The main principles of internal control include which of the following:
A) Establish responsibilities.
B) Maintain minimal records.
C) Use only computerized systems.
D) Bond all employees.
E) Require automated sales systems.
Q6) _________________________ is the electronic transfer of cash from one party to another.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Accounts and Notes Receivable
Available Study Resources on Quizplus for this Chatper
168 Verified Questions
168 Flashcards
Source URL: https://quizplus.com/quiz/72488
Sample Questions
Q1) A company had an accounts receivable turnover ratio of 8 and net sales of $600,000 for a given period.What was the average accounts receivable amount for this period?
A) $4,800,000.
B) $2,919.99.
C) $205.48.
D) $75,000.
E) Average accounts receivable cannot be determined from this information.
Q2) Electron borrowed $75,000 cash from TechCom by signing a promissory note.TechCom's entry to record the transaction should include a:
A) Debit to Notes Receivable for $75,000.
B) Debit to Accounts Receivable for $75,000.
C) Credit to Notes Receivable for $75,000.
D) Debit Notes Payable for $75,000.
E) Credit to Sales for $75,000.
Q3) ABC Co.sold $80,000 of accounts receivable to First Bank and incurred a 2% factoring fee.Prepare the journal entry for ABC Co.to record the sale.
Q4) How does Jarrett Pumphrey of ClearCorrect,view decisions involving sales on credit?
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Long-Term Assets
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/72487
Sample Questions
Q1) On December 31,2013,Stable Company sold a piece of equipment that was purchased on January 1,2009.The equipment originally cost $820,000 and has an estimated useful life of eight years.Stable uses the double-declining-balance method of depreciation.What is the gain/loss on the sale of equipment that Stable will recognize if the equipment was sold for $230,000?
A)$35,409.50 gain
B) $25,000.00 loss
C) $25,000.00 gain
D) $35,408.00 loss
E) $0; no gain or loss
Q2) A company bought a new display case for $42,000 and was given a trade-in of $2,000 on an old display case,so the company paid $40,000 cash with the trade-in.The old case had an original cost of $37,000 and accumulated depreciation of $34,000.The company should record the value of new display case at:
A) $2,000
B) $3,000
C) $40,000
D) $42,000
E) $43,000
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Current Liabilities
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/72486
Sample Questions
Q1) Payroll is usually paid with a check or with the use of an electronic funds transfer.
A)True
B)False
Q2) On October 10,2013,Printfast Company sells a commercial printer for $2,350 with a one-year warranty that covers parts.Warranty expense is projected to be 4% of sales.On February 28,2014,the printer requires repairs.The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair.What warranty expense is recorded for this printer during 2014?
A) $14.00.
B) $84.80.
C) $94.00.
D) $0, there is no expense in 2014.
E) $230.00.
Q3) Debt guarantees are not disclosed because the guarantor is not the primary debtor.
A)True
B)False
Q4) Vacation benefits are a type of _______________ liability.
Q5) Gross pay less all deductions is called ____________________.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Long-Term Liabilities
Available Study Resources on Quizplus for this Chatper
187 Verified Questions
187 Flashcards
Source URL: https://quizplus.com/quiz/72485
Sample Questions
Q1) If an issuer sells a bond at any other date than the interest payment date:
A) This means the bond sells at a premium.
B) This means the bond sells at a discount.
C) The issuing company will report a loss on the sale of the bond.
D) The issuing company will report a gain on the sale of the bond.
E) The buyer normally pays the issuer the purchase price plus any interest accrued since the last interest payment date.
Q2) What is the debt to equity ratio for a company that has $700,000 in total liabilities and $3,500,000 in total equity?
A) 20%
B) 5
C) $2,100,000
D) 2%
E) .5
Q3) Operating leases are long-term or noncancelable leases in which the lessor transfers all the risks and rewards of ownership to the lessee.
A)True
B)False
Q4) Identify and explain the advantages and disadvantages of bond financing.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Corporate Reporting and Analysis
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/72484
Sample Questions
Q1) What is a corporation? Identify the key advantages and disadvantages of corporations.
Q2) The statement of changes in stockholders' equity:
A) Is part of the statement of retained earnings.
B) Shows only the ending balances in stockholders' equity.
C) Describes changes in contributed capital and retained earnings subcategories
D) Does not include changes in treasury stock.
E) Is reported by very few companies.
Q3) Stockholders' equity consists of:
A) Long-term assets.
B) Contributed capital and retained earnings.
C) Contributed capital and par value.
D) Retained earnings and cash.
E) Premiums and discounts.
Q4) _____________________ is a class of stock assigned a value by the corporation in its charter.
Q5) A company sold stock for $733,000.The shares had a par value of $6.26 each.After the transaction,the paid-in capital in excess of par common stock account had a balance of $420,000.How many shares did the company sell?
Page 13
Q6) What is a stock split? How is a stock split different from a stock dividend?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Reporting Cash Flows
Available Study Resources on Quizplus for this Chatper
172 Verified Questions
172 Flashcards
Source URL: https://quizplus.com/quiz/72483
Sample Questions
Q1) Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.
A)True
B)False
Q2) Selected information from Jet Company's 2013 financial statements is shown below (in millions):
Inventory decreased $6.0 \(\quad \)\(\quad \)\(\quad \)Accounts payable increased by $7.0
Cost of goods sold $36.50 \(\quad \)\(\quad \)\(\quad \)Salaries expense $24.0
Salaries payable decreased $6.0 \(\quad \)Accounts receivable increased by $10.0 Sales $56.4
What is the amount of cash paid for salaries by Jet during 2013?
A) $4.0
B) $6.0
C) $24.0
D) $30.0
E) $18.0
Q3) Information to prepare the statement of cash flows usually comes from three sources: (1)__________________________,(2)_______________________ and (3)____________________.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Analysis of Financial Statements
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/72482
Sample Questions
Q1) The return on total assets ratio is a profitability measure.
A)True
B)False
Q2) In horizontal analysis the percent change is computed by:
A) Subtracting the analysis period amount from the base period amount.
B) Subtracting the base period amount from the analysis period amount.
C) Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100.
D) Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100.
E) Subtracting the base period amount from the analysis amount, then dividing the result by the analysis period amount.
Q3) Internal users of financial information:
A) Are not directly involved in operating a company.
B) Are those individuals involved in managing and operating the company.
C) Include shareholders and lenders.
D) Include directors and customers.
E) Include suppliers, regulators and the press.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Managerial Accounting Concepts and Principles
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/72481
Sample Questions
Q1) Prime costs consist of direct labor and factory overhead.
A)True
B)False
Q2) ____________________ inventory consists of products in the process of being manufactured but not yet complete.
Q3) A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.
Q4) Cost concepts such as variable,fixed,mixed,direct,and indirect apply only to manufacturers and not to service companies.
A)True
B)False
Q5) The manufacturing statement is also known as
Q6) What is fraud as it relates to the business environment?
Q7) A manufacturer's inventory that is not completely finished is called
Q8) An out-of-pocket cost requires a future cash outlay and is relevant for decision making.
A)True
B)False Page 16
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 15: Job Order Costing and Analysis
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/72480
Sample Questions
Q1) Describe how materials flow through a job order cost accounting system and identify the key documents in the system.
Q2) In a job order cost accounting system,indirect labor costs are debited to the Factory Overhead account.
A)True
B)False
Q3) A material amount of overapplied or underapplied overhead should be disposed of by allocating it to:
A) Cost of goods sold and finished goods.
B) Finished goods and goods in process.
C) Goods in process, finished goods, and cost of goods sold.
D) Goods in process.
E) Raw materials, goods in process, and finished goods.
Q4) Since a predetermined overhead allocation rate is established before a period begins,this rate is revised many times during the period to compensate for inaccurate estimates previously made.
A)True
B)False
Q5) A ______________________ is a separate record maintained for each job.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Process Costing
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/72479
Sample Questions
Q1) What was the cost of the direct materials used in the Grating Department?
Q2) A company that uses a process cost accounting system maintains separate Goods in Process Inventory accounts for each of its manufacturing departments.
A)True
B)False
Q3) Direct material costs are recorded:
A) Indirectly to Goods in Process account.
B) Indirectly to a Finished Goods account.
C) Directly to a Goods in Process account.
D) Directly to a Finished Goods account.
E) Directly to a Cost of Goods Sold account.
Q4) To compute an equivalent unit of production,one must be able to reasonably estimate:
A) The percentage of completion.
B) Units completed.
C) Units started and completed.
D) Direct labor cost.
E) Materials cost.
Q5) Compare and contrast the FIFO and weighted-average methods of process costing.
Page 19
Q6) What are the four steps in accounting for production activity in a period?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Activity-Based Costing and Analysis
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/72478
Sample Questions
Q1) Which of the following are advantages of using the plantwide overhead rate method?
A) The use of cost pools is considerably more accurate than other overhead allocations.
B) The necessary information is readily available.
C) It is more accurate than traditional overhead allocations.
D) Each department has its own overhead rate and its own allocation base.
E) It takes into account that when products differ in batch size and complexity, they usually consume different amounts of overhead resources.
Q2) In activity-based costing,an activity can involve several related tasks.
A)True
B)False
Q3) Data concerning volume-related measures are readily available in most manufacturing settings.
A)True
B)False
Q4) Distorted product cost information can result in poor decisions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 18: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/72477
Sample Questions
Q1) Schmidt Inc,manufactures inexpensive cameras that sell for $50.Fixed costs are $720,000 and variable costs are $30.00 per unit.Schmidt can buy a newer production machine that will increase fixed costs by $14,400 per year but will increase variable costs by 10% per unit.What are the original and the new break-even points in this situation?
A) Original $43,200; New $36,720.
B) Original $36,000; New $36,720.
C) Original $36,000; New $42,353.
D) Original $36,000; New $43,200.
E) Original $24,000; New $41,506.
Q2) Define variable cost,fixed cost,and mixed cost.
Q3) The contribution margin per unit is:
A) $5.00
B) $7.00
C) $8.17
D) $12.00
E) $17.00
Q4) Briefly describe a CVP chart,including its major components.
Q5) The ratio of the volumes of the various products sold by a company is called the
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 19: Variable Costing and Performance Reporting
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/72476
Sample Questions
Q1) Given the following data,calculate product cost per unit under absorption costing.
\(\begin{array}{|l|c|}
\hline \text { Direct labor } & \$ 7 \text { per unit } \\
\hline \text { Direct materials } & \$ 1 \text { per unit } \\
\hline \text { Overhead } & \\
\hline \text { Total variable overhead } & \$ 20,000 \\
\hline \text { Total fixed overhead } & \$ 90,000 \\
\hline & \\
\hline \text { Expected units to be produced } & 40,000 \text { units } \\
\hline
\end{array}\)
A) $8 per unit
B) $8.50 per unit
C) $10.25 per unit
D) $10.75 per unit
E) $12 per unit
Q2) ________________________ is the exact point where revenues equal expenses.
Q3) What costs are treated as product costs under the absorption costing method?
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 20: Master Budgets and Performance Planning
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/72475
Sample Questions
Q1) Traditional budgeting is generally better than activity-based budgeting when attempting to reduce costs by eliminating nonvalue-added activities.
A)True
B)False
Q2) The ___________________________ is prepared by manufacturing firms and takes the place of the purchases budget prepared by merchandising firms.
Q3) The ______________________________ shows the budgeted costs for direct materials,direct labor,and overhead based on the budgeted production volume from the production budget.
Q4) The responsibility for coordinating the preparation of a master budget should be assigned to the chief executive officer.
A)True
B)False
Q5) What is a manufacturing budget?
Q6) What are rolling budgets? Why are rolling budgets prepared?
Q7) Briefly describe the process by which budgets are developed and administered.
Q8) What is a sales budget? How is the sales budget prepared?
Page 23
Q9) The budget process is usually administered by a _____________________.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 21: Flexible Budgets and Standard Costs
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/72474
Sample Questions
Q1) The direct labor cost variance is:
A) $28,000 favorable
B) $28,000 unfavorable
C) $45,000 unfavorable
D) $45,000 favorable
E) $17,000 unfavorable
Q2) A product has a sales price of $20.Based on a 15,000-unit production level,the variable costs are $12 per unit and the fixed costs are $6 per unit.Using a flexible budget for an actual production and sales level of 18,000 units,what is the budgeted operating income?
Q3) The sum of the variable overhead spending variance,the variable overhead efficiency variance,and the fixed overhead spending variance is the ____________________________.
Q4) A performance report compares the differences between:
A) Actual results and predicted results.
B) Actual results over several periods.
C) Predicted results over several periods.
D) Predicted results over several levels of activity.
E) Predicted results and standard results.
Q5) A flexible budget is also called a _______________ budget.
Page 24
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Decentralization and Performance Measurement
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/72473
Sample Questions
Q1) Departmental contribution to overhead is the amount of revenues for that department less its direct expenses.
A)True
B)False
Q2) The salaries of employees who spend all their time working in one department are:
A) Variable expenses
B) Indirect expenses
C) Direct expenses
D) Responsibility expenses
E) Unavoidable expenses
Q3) An accounting system that provides information that management can use to evaluate the performance of a department's manager is called a:
A) Cost accounting system.
B) Managerial accounting system.
C) Responsibility accounting system.
D) Financial accounting system.
E) Activity-based accounting system.
Q4) What is the purpose of a departmental accounting system?
Page 25
To view all questions and flashcards with answers, click on the resource link above.
Chapter 23: Relevant Costing for Managerial Decisions
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/72472
Sample Questions
Q1) A local learning center is considering replacing the computers in its facility with thin client technology,thereby eliminating the need for individual computers at each station in the lab.The cost to purchase and install this new technology is $450,000 and it is projected to last for six years.The existing computers have a book value of $70,000 and a market value of $18,000 if they were to be sold.They expect to save a fair amount of money in maintenance costs and software upgrades if they go to the new technology. Required:
a.What would the annual savings have to be in order to warrant the replacement of the existing computers with the thin client technology?
b.What would the annual savings have to be in order to warrant the replacement of the existing computers with the thin client technology if the existing computers have no current market value?
Q2) What is the difference between an opportunity cost and a sunk cost?
Q3) Wages from a job a student gives up to attend summer school would be a sunk cost.
A)True
B)False
Q4) Relevant costs are also known as ___________________.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: Capital Budgeting and Investment Analysis
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/72471
Sample Questions
Q1) The process of analyzing alternative investments and deciding which assets to acquire or sell is known as:
A) Planning and control.
B) Capital budgeting.
C) Variance analysis.
D) Master budgeting.
E) Managerial accounting.
Q2) Use of the internal rate of return method cannot be used with uneven cash flows.
A)True
B)False
Q3) A company is considering purchasing a machine for $75,000.The machine is expected to generate a net after-tax income of $11,250 per year.Depreciation expense would be $7,500.What is the payback period for this machine?
Q4) In calculating the rate of return on average investment,average investment should be calculated as (beginning book value + ending book value)/2.
A)True
B)False
Q5) How can management evaluate the risk of an investment?
Q6) Internal rate of return is expressed as a _________________.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Accounting With Special Journals
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/72498
Sample Questions
Q1) When posting from special journals,each debit and credit entry is entered as a separate amount.
A)True
B)False
Q2) Auditors rely on accounting system databases when they audit financial statements and a company's controls.
A)True
B)False
Q3) Equipment,inventory,and investments can each have its own subsidiary ledger.
A)True
B)False
Q4) The five fundamental principles of accounting information systems are:
A) Control, accountability, relevance, compatibility, and flexibility.
B) Control, relevance, compatibility, flexibility, and cost-benefit.
C) Control, relevance, compatibility, flexibility, and safety.
D) Control, relevance, compatibility, timeliness, and cost-benefit.
E) Historical cost, relevance, compatibility, flexibility, and cost-benefit.
Q5) A typical sales journal is used to record cash sales.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Time Value of Money
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/72497
Sample Questions
Q1) You hope to retire in 10 years.Regrettably you are only just now beginning to save money for this purpose.You expect to save $6,000 a year at an annual rate of 8%.How much will you have accumulated when you retire?
Q2) From the perspective of a depositor,a savings account is a liability with interest. A)True B)False
Q3) Sam has a loan that requires a single payment of $4,000 at the end of three years.The loan's interest rate is 6%,compounded semiannually.How much did Sam borrow?
A) $3,358.40
B) $4,000.00
C) $3,660.40
D) $4,776.40
E) $3,350.00
Q4) A company is creating a fund by depositing $65,763 today.The fund will grow to $90,000 after eight years.What annual interest rate is the company earning on the fund?
Q5) Explain the concept of the present value of a single amount.
Q6) What is interest?
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 27: Investments and International Operations
Available Study Resources on Quizplus for this Chatper
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/72496
Sample Questions
Q1) A company owns $100,000 of 9% bonds that pay interest on October 1 and April 1.The amount of interest accrued on December 31 (the company's year-end)would be:
A) $750
B) $1,500
C) $2,250
D) $4,500
E) $9,000
Q2) An investor with significant influence owns as least 20%,but not more than 50%,of another company's voting stock.
A)True
B)False
Q3) __________________________ are investments in securities that are not readily convertible to cash or are not intended to be converted to cash in the short-term.
Q4) Any unrealized gain or loss on available-for-sale securities is reported on the income statement in the other gain or loss section.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 28: Accounting for Partnerships
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/72495
Sample Questions
Q1) A partnership that has two classes of partners,general and limited,where the limited partners have no personal liability beyond the amounts they invest in the partnership and no active role in the partnership except as specified in the partnership agreement,is a:
A) Mutual agency partnership
B) Limited partnership
C) Limited liability partnership
D) General partnership
E) Limited liability corporation
Q2) Sierra and Jenson formed a partnership.Sierra contributed $25,000 cash and accounts receivable worth $11,000.Jenson's investment included cash,$5,000; inventory,$18,000; and supplies,$1,000.Prepare the journal entries to record each partner's investment in the new partnership.
Q3) Accounting procedures for all items are the same for both C corporations and S corporations in all aspects.
A)True
B)False
Q4) A partner can be admitted into a partnership by ________________________ or by ______________________________.
To view all questions and flashcards with answers, click on the resource link above. Page 31