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APU ACCT300 week 7 quiz 7 final_40MCQs

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Question;Question;1 of 40;2.5 Points;In using the total cost concept of applying the cost-plus approach to;product pricing, only profit is covered in the markup.;A. True;B. False;Question;2 of 40;2.5 Points;What is the effect of a stock dividend on the balance sheet?;A.Decrease total assets and decrease total;stockholders? equity;B.Decrease total assets and increase total;stockholders? equity;C.Increase total liabilities and decrease;total stockholders? equity;D.No effect on total assets, total;liabilities, or total stockholders? equity;Question;3 of 40;2.5 Points;Hodges, Inc. had the following assets and liabilities as of September;30, 2013: Assets - $56,327 and Liabilities - $28,416. If assets increased by;$3,914 and equity increased by $2,290 during October, what is the increase or;decrease in liabilities of Hodges as of October 31, 2013?;A.($1,624);B.$1,624;C.$6,204;D.($6,204);Question;4 of 40;2.5 Points;In computing the rate earned on total assets, interest expense is;added to net income before dividing by average total assets.;A. True;B. False;Question;5 of 40;2.5 Points;Cash dividends are not paid on shares of treasury stock.;A. True;B. False;Question;6 of 40;2.5 Points;Earnings per common share is one factor that influences the decision;to use debt financing or equity financing.;A. True;B. False;Question;7 of 40;2.5 Points;Which of the following is a reason to undergo a reverse stock split?;A.To reduce the stock?s market price per;share.;B.To increase total stockholders? equity.;C.To reduce total stockholders? equity.;D.To increase the market value of the stock;per share.;Question;8 of 40;2.5 Points;A voucher;A.is received from customers to explain the;purpose of a payment.;B.is normally prepared in the Accounting;Department.;C.system is used to control cash receipts.;D.system is an internal control procedure;to verify that the assets in the records are the ones the company owns.;Question;9 of 40;2.5 Points;Money market funds, commercial paper, and U.S. Treasury Bills are;examples of cash equivalents.;A. True;B. False;Question;10 of 40;2.5 Points;Which of the following accounts is reported in the noncurrent;liabilities section of the corporate balance sheet?;A.Bonds Payable;B.Common Stock;C.Dividends Payable;D.Cash;Question;11 of 40;2.5 Points;Which one of the following is not a characteristic generally evaluated;in ratio analysis?;A.Liquidity;B.Profitability;C.Solvency;D.Marketability;Question;12 of 40;2.5 Points;Under the accrual basis of accounting, net cash flows from operating;activities on the statement of cash flows will normally be the same as net;income.;A. True;B. False;Question;13 of 40;2.5 Points;Activity-based costing is a method of accumulating and allocating;costs by department.;A. True;B. False;Question;14 of 40;2.5 Points;Inventories of merchandising and manufacturing businesses are reported;as current assets on the balance sheet.;A. True;B. False;Question;15 of 40;2.5 Points;The purpose of an audit is to;A.determine whether or not a company is a;good investment.;B.render an opinion on the fairness of the;statements.;C.determine whether or not a company;complies with income tax regulations.;D.determine whether or not a company has a;good credit risk.;Question;16 of 40;2.5 Points;In using the total cost concept of applying the cost-plus approach to;product pricing, only profit is covered in the markup.;A. True;B. False;Question;17 of 40;2.5 Points;Using the job order cost system, service businesses are able to bill;clients on a weekly or monthly basis, even when the job has not been;completed.;A. True;B. False;Question;18 of 40;2.5 Points;The __________ is prepared with various sections, subsections, and;captions that aid in its interpretation and analysis.;A.accounting equation;B.retained earnings statement;C.intangible asset section;D.classified balance sheet;Question;19 of 40;2.5 Points;The framework that has become widely accepted as the standard by which;companies design, analyze, and evaluate internal controls is the;A.Internal Control ? Integrated Framework;by the Committee of Sponsoring Organizations.;B.Internal Control ? Integrated Framework;by the Congress of Special Offerings.;C.Internal Control Localized Structure by;the Committee of Sponsoring Organizations.;D.Internal Control Localized Structure by;the Congress of Special Offerings.;Question;20 of 40;2.5 Points;Fixed assets are reported at their book value on the balance sheet.;A. True;B. False;Question;21 of 40;2.5 Points;If employees accept a wage contract that decreases the unit;contribution margin, the break-even point will decrease.;A. True;B. False;Question;22 of 40;2.5 Points;If paid-in capital in excess of par-preferred stock is $80,000;preferred stock is $500,000, paid-in capital in excel of par-common stock is;$50,000, common stock is $1,000,000, and retained earnings is $230,000, the;total stockholders? equity is $1,860,000.;A. True;B. False;Question;23 of 40;2.5 Points;The estimated amount that an asset can be sold for at the end of its;useful life is called its book value.;A. True;B. False;Question;24 of 40;2.5 Points;The document authorizing the issuance of materials from the storeroom;for use in manufacturing is called;A.materials requisition.;B.purchase requisition.;C.receiving report.;D.purchase order.;Question;25 of 40;2.5 Points;If a company has current assets totaling $56,000 and current;liabilities totaling $40,500, then the company?s working capital totals;$15,500.;A. True;B. False;Question;26 of 40;2.5 Points;Under which method of inventory costing is the cost flow assumed to be;in the reverse order in which the expenditures were made?;A.Average cost;B.Last-in, first-out;C.First-in, first-out;D.Specific identification method;Question;27 of 40;2.5 Points;The process of a company selling its accounts receivable to another;company is referred as;A.discounting.;B.adjusting.;C.assignment.;D.factoring.;Question;28 of 40;2.5 Points;Which of the following is a characteristic of the just-in-time;philosophy?;A.Increases inventory to protect against;process problems;B.Tolerates defects;C.Emphasizes push manufacturing;D.Emphasizes product-oriented layout;Question;29 of 40;2.5 Points;Reporting under managerial accounting is not restricted by specific;rules such as generally accepted accounting principles (GAAP).;A. True;B. False;Question;30 of 40;2.5 Points;Management?s philosophy and operating style would affect which of the;following elements of internal control?;A.Risk assessment;B.Monitoring;C.Control environment;D.Information and communication;Question;31 of 40;2.5 Points;The objective of most businesses is to maximize profits.;A. True;B. False;Question;32 of 40;2.5 Points;The payment of a liability;A.decreases assets and stockholders?;equity.;B.increases assets and decreases liabilities.;C.decreases assets and increases;liabilities.;D.decreases assets and decreases;liabilities.;Question;33 of 40;2.5 Points;If the cost of employee wages is not a significant portion of the;total product cost, the wages are classified as factory overhead cost.;A. True;B. False;Question;34 of 40;2.5 Points;If the total unit cost of manufacturing Product Y is currently $40 and;the total unit cost after modifying the style is estimated to be $48, the;differential cost for this situation is $48.;A. True;B. False;Question;35 of 40;2.5 Points;Which of the following information is not provided by job cost sheets?;A.Cost impact of materials changes;B.Cost impact of continuous improvement in;the manufacturing process;C.Change in materials price or direct labor;rate over time;D.Utilities, managerial salaries, and;depreciation of computers in the corporate office;Question;36 of 40;2.5 Points;What are current liabilities?;A.Liabilities that are due and payable;within two years.;B.Liabilities that are due and to be paid;out of the current assets within one year.;C.Liabilities that are due but not payable;for more than one year.;D.Liabilities that are payable if a;possible subsequent event occurs.;Question;37 of 40;2.5 Points;When a business sells more than one product at varying selling prices;the business?s break-even point can be determined as long as the number of;products does not exceed;A.two.;B.three.;C.fifteen.;D.there is no limit.;Question;38 of 40;2.5 Points;Under the cash basis of accounting, expenses are recorded when paid.;A. True;B. False;Question;39 of 40;2.5 Points;A practical approach that is frequently used by managers when setting;normal selling price is the;A.cost-plus approach.;B.economic theory approach.;C.price graph approach.;D.market price approach.;Question;40 of 40;2.5 Points;The revenue recognition concept states that revenue should be recorded;in the same period as the cash is received.;A. True;B. False

 

Paper#37222 | Written in 18-Jul-2015

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