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UOP ACC561 final exam

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Question;Multiple Choice Question 49;Which of the following is an advantage of corporations;relative to partnerships and sole proprietorships?;Harder to transfer ownership.;Lower taxes.;Most common form of organization.;Reduced legal liability for;investors.;Multiple Choice Question 64;The group of users of accounting information charged with;achieving the goals of the business is its;creditors.;investors.;managers.;auditors.;Multiple Choice Question 110;Which of the following financial statements is concerned;with the company at a point in time?;Balance sheet.;Income statement.;Retained Earnings statement.;Statement of cash flows.;Multiple Choice Question 112;An income statement;presents the revenues and;expenses for a specific period of time.;summarizes the changes in;retained earnings for a specific period of time.;reports the assets, liabilities;and stockholders? equity at a specific date.;reports the changes in assets;liabilities, and stockholders? equity over a period of time.;Multiple Choice Question 118;The most important information needed to determine if;companies can pay their current obligations is the;projected net income for next;year.;net income for this year.;relationship between current;assets and current liabilities.;relationship between short-term;and long-term liabilities.;Multiple Choice Question 124;A liquidity ratio measures the;income or operating success of a;company over a period of time.;percentage of total financing;provided by creditors.;ability of a company to survive;over a long period of time.;short-term ability of a company;to pay its maturing obligations and to meet unexpected needs for cash.;Multiple Choice Question 165;The convention of consistency refers to consistent use of;accounting principles;throughout the accounting;periods.;within industries.;among accounting periods.;among firms.;Multiple Choice Question 90;Horizontal analysis is also known as;vertical analysis.;trend analysis.;common size analysis.;linear analysis;Multiple Choice Question 92;Horizontal analysis is a technique for evaluating a series;of financial statement data over a period of time;that has been arranged from the;highest number to the lowest number.;to determine the amount and/or;percentage increase or decrease that has taken place.;to determine which items are in;error.;that has been arranged from the;lowest number to the highest number.;Multiple Choice Question 111;Vertical analysis is a technique that expresses each item in;a financial statement;as a percent of the item in the;previous year.;in dollars and cents.;as a percent of a base amount.;starting with the highest value;down to the lowest value.;Multiple Choice Question 41;Process costing is used when;production is aimed at filling a;specific customer order.;costs are to be assigned to specific;jobs.;the production process is;continuous.;dissimilar products are involved.;Multiple Choice Question 43;An important feature of a job order cost system is that each;job;has its own distinguishing;characteristics.;must be similar to previous jobs;completed.;consists of one unit of output.;must be completed before a new;job is accepted.;Multiple Choice Question 49;In a process cost system, product costs are summarized;after each unit is produced.;on production cost reports.;when the products are sold.;on job cost sheets.;Multiple Choice Question 33;An activity that has a direct cause-effect relationship with;the resources consumed is a(n);cost pool.;cost driver.;overhead rate.;product activity.;Multiple Choice Question 40;Activity-based costing;accumulates overhead in one cost;pool, then assigns the overhead to products and services by means of a cost;driver.;allocates overhead directly to;products and services based on activity levels.;assigns activity cost pools to;products and services, then allocates overhead back to the activity cost pools.;allocates overhead to multiple;activity cost pools, and it then assigns the activity cost pools to products;and services by means of cost drivers.;Multiple Choice Question 40;A cost which remains constant per unit at various levels of;activity is a;mixed cost.;variable cost.;fixed cost.;manufacturing cost.;Multiple Choice Question 105;The break-even point is where;total variable costs equal total;fixed costs.;total sales equal total variable;costs.;contribution margin equals total;fixed costs.;total sales equal total fixed;costs.;Multiple Choice Question 109;Fixed costs are $600,000 and the contribution margin per;unit is $150. What is the break-even point?;4,000 units;$1,500,000;$4,000,000;1,500 units;Multiple Choice Question 94;When a company assigns the costs of direct materials, direct;labor, and both variable and fixed manufacturing overhead to products, that;company is using;product costing.;operations costing.;absorption costing.;variable costing.;Multiple Choice Question 122;If a division manager's compensation is based upon the;division's net income, the manager may decide to meet the net income targets by;increasing production when using;absorption costing, in order to;increase net income.;variable costing, in order to;decrease net income.;absorption costing, in order to;decrease net income.;variable costing, in order to;increase net income.;Multiple Choice Question 50;An unrealistic budget is more likely to result when it;has been developed by all levels;of management.;is developed with performance;appraisal usages in mind.;has been developed in a top down;fashion.;has been developed in a bottom up;fashion.;Multiple Choice Question 39;A major element in budgetary control is;the comparison of actual results;with planned objectives.;the valuation of inventories.;approval of the budget by the;stockholders.;the preparation of long-term;plans.;Multiple Choice Question 43;The purpose of the sales budget report is to;control sales commissions.;control selling expenses.;determine whether sales goals are;being met.;determine whether income;objectives are being met.;Multiple Choice Question 89;The accumulation of accounting data on the basis of the;individual manager who has the authority to make day-to-day decisions about;activities in an area is called;static reporting.;master budgeting.;flexible accounting.;responsibility accounting;Multiple Choice Question 142;Variance reports are;(a) external financial reports.;(b) SEC financial reports.;(c) internal reports for;management.;(d) all of these.;Multiple Choice Question 40;Internal reports that review the actual impact of decisions;are prepared by;factory workers.;the controller.;management accountants.;department heads.;Multiple Choice Question 42;The process of evaluating financial data that change under;alternative courses of action is called;cost-benefit analysis.;double entry analysis.;contribution margin analysis.;incremental analysis.;Multiple Choice Question 54;Seasons Manufacturing manufactures a product with a unit;variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs;were $480,000 when 10,000 units were produced and sold. The company has a;one-time opportunity to sell an additional 1,000 units at $140 each in a;foreign market which would not affect its present sales. If the company has;sufficient capacity to produce the additional units, acceptance of the special;order would affect net income as follows;Income would decrease by $8,000.;Income would increase by $8,000.;Income would increase by;$140,000.;Income would increase by $40,000.;Multiple Choice Question 70;Carter, Inc. can make 100 units of a necessary component;part with the following costs;Direct Materials $120,000;Direct Labor 20,000;Variable Overhead 60,000;Fixed Overhead 40,000;If Carter can purchase the component externally for $220,000;and only $10,000 of the fixed costs can be avoided, what is the correct;make-or-buy decision?;Buy and save $10,000;Make and save $30,000;Make and save $10,000;Buy and save $30,000;Multiple Choice Question 84;A company has a process that results in 15,000 pounds of;Product A that can be sold for $16 per pound. An alternative would be to;process Product A further at a cost of $200,000 and then sell it for $28 per;pound. Should management sell Product A now or should Product A be processed;further and then sold? What is the effect of the action?;Sell now, the company will be;better off by $200,000.;Process further, the company will;be better off by $180,000.;Sell now, the company will be;better off by $20,000.;Process further, the company will;be better off by $20,000.

 

Paper#40173 | Written in 18-Jul-2015

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