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ACC 561 Final Exam

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Question;ACC;561 Final Exam;1). The;statement of cash flows is used for _____.;2) Nonoperating items on the income statement _____.;3) The difference between a single-step and multiple-step income statement is;that a single-step income statement _____. ACC 561;final exam;4) Which one of the following statements is true?;5) The _____ accounting convention uses the acquisition cost minus depreciation;in valuing an asset on the balance sheet.;6) A new corporation issuing a common, no-par value stock for cash would;include a journal entry a debit to _____. ACC;561 final exam ACC 561 final exam;7) Which type of organization would most likely have work-in-process;inventory?;8) _____ is a measure of income or profit divided by the investment required to;obtain that income or profit.;9) The following information is available for the Peter Company;Sales: $150,000;Invested capital: $156,250;ROI: 10%;The return on sales is _____.;10) The following information is available for the Peter Company;Sales: $500,000;Invested capital: $312,500;ROI: 10%;The return on sales is _____.;11) Company A?s revenues are $300 on invested capital of $240. Expenses are;currently 70% of sales. If Angelo Company can reduce its capital investment by;20% in Company A, return on investment will be _____. ACC 561 final exam;12) When the variable costing method is used, fixed factory overhead appears on;the income statement as a _____. ACC 561 final;exam;13) In absorption costing, costs are separated into the major categories of;14) _____ is another term for variable costing.;15) Budgeted service department cost rates protects the user departments from;16) _____ is an example of the external financial-reporting purpose of the cost;management systems. ACC 561 final exam;17) The level of sales at which revenues equal expenses and net income is zero;is called the _____.;18) Output measures of both resources and activities are _____.;19) The break-even point is where _____.;20) _____ budgeting is when budgets are formulated with the active;participation of all affected employees. ACC 561;final exam;21) _____ is the logical integration of management accounting tools to gather;and report data and to evaluate performance.;22) _____ are components of a master budget.;23) An important factor considered by sales forecasters is _____. ACC 561 final exam;24) _____ models are mathematical models of the master budget that can react to;any set of assumptions about sales, costs, and product mix.;25) Which of the following is an objective of budgeting?;26) An organization's budget program should be used ACC 561 ACC561 Final Exam;27) The activity-based costing may reveal _________, whereas traditional;costing cannot.;28) _____ is a method of approximating cost functions. ACC 561 final exam;29) In relation to a cost function, the term reliability refers to _____.;30) One of the simplest methods to measure a linear cost function from past;data is the _____.;1.The statement of cash flows is used for _____.;A. showing the relationship of net income to changes in current assets;B. determining a company?s acceptable level of debt financing;C. revealing commitments that may restrict future courses of action;D. evaluating the creditworthiness of the organization2.Nonoperating items on the income statement _____.;A. appear only on corporate income statements;B. appear on the income statement immediately after gross profit;C. are revenues and expenses arising from adjusting entries;D. reflect the effects of financial management decisions3.The difference between a single-step and multiple-step income;statement is that a single-step income statement _____.;A. groups all revenues together and all expenses together, whereas a;multiple-step income statement separates certain revenues and expenses from;each other and presents subtotals;B. calculates net income using one method, whereas a multiple-step income;statement calculates net income using two or more methods;C. calculates gross profit and operating income, whereas a multiple-step income;statement does not;D. shows only 1 year's net income, whereas a multiple-step income statement;shows multiple years' net income4.Which one of the following statements is true?;A. The statement of cash flows reports the cash receipts but not cash payments;of an entity over a period of time.;B. Both the statement of cash flows and the income statement determine the net;income for a company.;C. Transactions affecting the sale and the purchase or production of goods and;services are reported in the financing activities section of the statement of;cash flows.;D. Investing activities in the statement of cash flows include acquiring and;selling long-term assets.5.The _____ accounting convention uses the acquisition cost minus;depreciation in valuing an asset on the balance sheet.;A. continuity;B. conservatism;C. cost-benefit;D. materiality;6.A new corporation issuing a common, no-par value;stock for cash would include a journal entry a debit to _____.;paid-in capital and a credit to retained earnings.;cash and a credit to common stock.;retained earnings and a credit to cash.;cash and a credit to retained income.7.Which type of organization would most likely have work-in-process;inventory?;A. A retail store;B. A manufacturing company;C. A service organization;D. A real-estate investment trust8.____ is a measure of income or profit divided by the investment;required to obtain that income or profit.;Return on sales;Return on investment;Residual income;Capital turnover9.The following information is available for the Peter Company: Sales;$150,000 Invested Capital 156,250 ROI 10% The return on sales is _____.;10.00%;62.50%;10.42%;none of these answers is correct10. The following information is available for the Peter Company;Sales: $500,000;Invested capital: $312,500;ROI: 10%;The return on sales is _____.;A. 10.00%;B. 6.250%;C. 1.000%;D. 62.50%11. Speedo Company's revenues are $300 on invested capital of $240.;Expenses are currently 70% of sales. If Angelo Company can reduce its invested;capital by 20%, return on investment will be _____.;75%;18.75%;93.75%;46.88%12. When the variable costing method is used, fixed factory overhead;appears on the income statement as a _____.;A. component of cost of goods sold;B. fixed expense;C. production-volume variance;D. component of gross profit;13. In absorption costing, costs are separated into;the major categories of_____.;fixed and variable;manufacturing and fixed;manufacturing and nonmanufacturing;variable and nonmanufacturing;14. _____ is another term for variable costing.;A. Full costing;B. Direct costing;C. Traditional costing;D. Absorption costing15. The use of budgeted service department cost rates protects using;departments from _____.all of these answers are correct;service outages;price fluctuations;service department efficiencies;16. _____ is an example of the external;financial-reporting purpose of the cost management systems.;A. The cost of a manufacturing process;B. The product mix to optimize profitability;C. The amount of inventory that should appear on the balance sheet;D. Budget reporting17.The level of sales at which revenues equal expenses and net income;is zero is called the _____.;A. margin of safety;B. contribution margin;C. break-even point;D. marginal income point18.Output measures of both resources and activities are _____.;A. cost drivers;B. stages of production;C. fixed activities;D. variable activities19.The break-even point is where _____.;A. total sales revenue equals total cost plus desired profit.;B. the contribution margin equals net income plus fixed costs.;C. total sales revenue equals total cost.;D. the variable cost equals total cost. 20.____ is an example of the external financial reporting purpose of;the cost management systems.;The product mix to optimize profitability;The cost of a manufacturing process;The amount of inventory that should appear on the balance sheet;Budget reporting 21._____ budgeting is when budgets are formulated with the active;participation of all affected employees.;A. Financial;B. Team;C. Participative;D. Shared22._____ is the logical integration of management accounting tools to;gather and report data and to evaluate performance.;A. An internal control system;B. A quality control system;C. A financial-reporting system;D. A management control system23._____ are components of a master budget.;A. A strategic plan and an operating budget;B. An operating budget and a capital budget;C. A continuous budget and a static budget;D. A cash budget and an activity budget24.Important factors considered by sales forecasters include all of the;following except _____.;past patterns of sales;competitors' activities;the desired level of sales;marketing research studies25._____ models are mathematical models of the master budget that can;react to any set of assumption about sales, costs, and product mix.;Futuring;Accounting;Budgeting analysis;Financial planning26.Which of the following is an objective of budgeting?;A. Budgeting provides benchmarks against which performance can be measured.;B. Budgeting provides a fixed fiscal plan that should not be changed during the;year.;C. Budgeting helps managers build favorable variances into the;performance-evaluation process.;D. Budgeting is done exclusively by the chief fiscal officer for control;purposes27.An organization's budget program should be used;A. to have power over employees.;B. to assign blame to managers that do not meet budgetary goals.;C. to help managers plan and control the organization?s performance.;D. to help the chief fiscal officer to allocate resources to the favored;projects of the executives.28.The activity-based costing may reveal _________, whereas traditional;costing cannot.;A. high-volume products are overcosted;B. low-volume products are overcosted;C. both high- and low-volume products are overcosted;D. both high- and low-volume products are undercosted29._____ is a method of approximating cost functions.;A. Cost-driver analysis;B. Transaction analysis;C. Product analysis;D. Account analysis30.In relation to a cost function, the term reliability refers to;A. whether the costs and activities can be easily observed;B. whether the cost function conforms to a given mathematical model;C. how well the cost function predicts future costs;D. how well the cost function explains past cost behavior31. One of the simplest methods to measure a linear cost function from;past data is the _____.;A. regression analysis method;B. high?low method;C. least squares regression method;D. visual-fit method

 

Paper#37989 | Written in 18-Jul-2015

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