hich of the following is not one of the 5 questions of transaction analysis?;A What's going on?;B Which accounts are affected?;C Is this an accrual?;D Does the balance sheet balance?;E Does my analysis make sense?;2 Which of the following is not an example of a decision or informed judgment that a potential employee could make from accounting information?;A Personnel turnover statistics (i.e., hiring and terminations).;B Probability of the company's ability to make profit sharing plan contributions in the future.;C Assessment of the risk that the company may become bankrupt in the near future.;D The extent of the company's commitment to a research program.;3 On January 31, an entity's balance sheet showed net assets of $1,025 and liabilities of $225 Owners' equity on January 31 was;A 800;B 1025;C 1250;D 225;4 Prepaid expenses classified as current assets represent;A current year expenses that have been accrued.;B current year disbursements that will be matched against revenues of the next year.;C cash that has been segregated to pay for future expenses.;D expenses of the current year that have been paid in advance.;5 Gains differ from revenues because gains;A are not a result of the entity's ongoing, central operations.;B do not have to be realized.;C are reported as income from operating activities.;D do not involve any offsetting costs or expenses.;6 Under most circumstances, in order to recognize revenue;A cash must have been received.;B the entity must expect to receive cash in the future.;C the entity must have paid for all expenses incurred in generating the revenue.;D the revenue must be realized or realizable, and earned.;7 Most entities satisfy the accounting criteria for recognizing revenue when;A an order is received from a customer.;B cash is received from a customer.;C an unearned revenue account is credited.;D a product is delivered or a service is provided.;8 The gross profit ratio is useful to the manager for each of the following purposes except that;A it can be used to determine the selling price to set for an item.;B it can be used to estimate the amount of inventory lost in a fire.;C it can be used to determine the amount available from a given amount of revenue to cover operating expenses.;D it can be used to estimate the amount of operating expenses for a period.;Analyzing Financial Statements;9 Which of the following is not a category of financial statement ratios?;A Financial leverage.;B Liquidity.;C Profitability.;D Prospectus.;10 An individual interested in making a judgment about the profitability of a company should;A review the trend of working capital for several years.;B calculate the company's ROI for the most recent year.;C review the trend of the company's ROI for several years.;D compare the company's ROI for the most recent year with the industry average ROI for the most recent year.;11 A potential creditor's judgment about granting credit would be most influenced by the potential customer's;A current ratio at the end of the prior fiscal year.;B most recent acid-test ratio.;C trend of acid-test ratio over the past three years.;D practice with respect to taking cash discounts offered by current suppliers.;12 The inventory turnover calculation;A is wrong unless cost of goods sold is used in the numerator.;B is wrong unless sales is used in the numerator.;C is an alternative way of expressing the number of days' sales in inventory.;D requires knowledge of the inventory cost flow assumption being used.;13 Asset turnover calculations;A are made by dividing the average asset balance during the year by the sales for the year.;B are made by dividing sales for the year by the asset balance at the end of the year.;C communicate information about how promptly the entity pays its bills.;D should be evaluated by observing the turnover trend over a period of time.;Managerial Accounting;14 The cost of a single unit of production in excess of the breakeven point in units is;A its fixed cost and variable cost.;B its fixed cost only.;C its variable cost only.;D none of the above.;15 To which function of management is CVP analysis most applicable?;A Planning.;B Organizing.;C Directing.;D Controlling.;16 An example of a product cost is;A advertising expense for the product.;B a portion of the president's travel expenses.;C interest expense on a loan to finance inventory.;D production line maintenance costs.;17 The production cost of a single unit of a manufactured product is determined by;A dividing total direct materials and direct labor for a production run by the number of units made.;B dividing total direct materials, direct labor, and manufacturing overhead for a production run by the number of units made.;C dividing total direct materials, direct labor, manufacturing overhead and selling expenses for a production run by the number of units made.;D dividing the selling price by the gross profit ratio.;18 An example of a cost likely to have a fixed behavior pattern is;A sales force commission.;B raw material costs.;C advertising costs.;D electricity costs for packaging equipment.;19 The budgeting process that most likely creates an attitude supportive of achieving organization goals is;A top-down approach.;B zero based approach.;C proportionate increase approach.;D participative approach.;20 Operating expenses are best budgeted on the basis of knowledge about;A cost behavior patterns.;B relevant range.;C prior period actual expenses.;D current period budget amounts.;21 Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?;A Variable cost and fixed cost.;B Direct cost and indirect cost.;C Product cost and period cost.;D Committed cost and discretionary cost.;22 Once standard costs for products or services have been developed;A they must be updated monthly to be useful.;B they can be used for more than planning and control purposes.;C they need not be revised unless the product or service is modified.;D performance reports must be issued if the standards are to be useful.
Paper#24999 | Written in 18-Jul-2015Price : $32