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ACCT300 week 7 quiz Final




Question;ACCT300 week 7 quiz FinalQuestion 1 of 402.5 PointsBook value is computed as:A.current market value less residual value. B.cost less residual value. C.current market value less accumulated depreciation. D.cost less accumulated depreciation. Question 2 of 402.5 PointsThe first month of operation showed the net cash from operating activities to be $3,760, the net cash from investing activities to be ($5,415), and the ending cash balance to be $3,425. The net cash from financing activities must be:A.$1,770. B.$5,080. C.$5,750. D.$12,600. Question 3 of 402.5 PointsThe percentage analysis of increases and decreases in corresponding items in comparative financial statements is referred as vertical analysis.A. TrueB. FalseQuestion 4 of 402.5 PointsMerchandise inventory shrinkage will increase Merchandise Inventory.A. TrueB. FalseQuestion 5 of 402.5 PointsIf employees accept a wage contract that decreases the unit contribution margin, the break-even point will decrease.A. TrueB. FalseQuestion 6 of 402.5 PointsIf 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. TrueB. FalseQuestion 7 of 402.5 PointsEast, Inc. had beginning inventory of $10,000, purchases of $25,000, and ending inventory of $5,000. What is East?s cost of merchandise sold?A.$10,000 B.$25,000 C.$5,000 D.$30,000 Question 8 of 402.5 PointsThe relationship of $225,000 to $100,000, expressed as a ratio, is:A.2.0 to 1. B.1.8 to 1. C.1.5 to 1. D.2.25 to 1. Question 9 of 402.5 PointsThe accrual basis of accounting requires revenue to be recorded when the service is performed.A. TrueB. FalseQuestion 10 of 402.5 PointsThe two methods of accounting for uncollectible receivables are the allowance method and the:A.equity method. write-off method. C.interest method. D.cost method. Question 11 of 402.5 PointsIf merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is:A.average cost. B.LIFO. C.FIFO. D.All methods will generate the same net income. Question 12 of 402.5 PointsUnder the cash basis of accounting, expenses are recorded when paid.A. TrueB. FalseQuestion 13 of 402.5 PointsIf fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point (in dollars)?A.$1,875,000 B.$1,250,000 C.$1,666,667 D.$1,350,000 Question 14 of 402.5 PointsA 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. price approach. Question 15 of 402.5 PointsFor the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share?A.$5.00 B.$2.50 C.$6.00 D.$3.00 Question 16 of 402.5 PointsThe percentage analysis of increases and decreases in corresponding items in comparative financial statements is referred as vertical analysis.A. TrueB. FalseQuestion 17 of 402.5 PointsPaying expenses affects which financial statement elements?A.Assets only B.Stockholders? equity only C.Assets and stockholders? equity D.Assets and liabilities Question 18 of 402.5 PointsAn adjusting entry would adjust revenue so that it is reported when earned and not when cash is received.A. TrueB. FalseQuestion 19 of 402.5 PointsWhich 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 20 of 402.5 PointsThe accrual basis of accounting recognizes:A.revenues when cash is received and expenses when cash is paid. B.revenues when earned and expenses when cash is paid. C.revenues when cash if received and expenses when incurred. D.revenues when earned and expenses when incurred. Question 21 of 402.5 PointsIf the cost of an item of inventory is $60 and the current replacement cost is $65, the amount included in inventory according to the lower-of-cost-or-market method is:A.$5 B.$60 C.$65 D.$125 Question 22 of 402.5 PointsA cost that will not be affected by later decisions is termed:A.historical cost. B.differential cost. C.sunk cost. D.replacement cost. Question 23 of 402.5 PointsThe branch of accounting related to the management's financial decisions is known as financial accounting.A. TrueB. FalseQuestion 24 of 402.5 PointsThe balance sheet represents the accounting equation.A. TrueB. FalseQuestion 25 of 402.5 PointsThe stockholders? equity of a company should equal the sum of its total assets and total liabilities.A. TrueB. FalseQuestion 26 of 402.5 PointsInventories of finished products are reported as current assets on a manufacturer?s balance sheet.A. TrueB. FalseQuestion 27 of 402.5 PointsAn activity-based costing system allocates factory overhead rates to products or services using:A.a single plantwide overhead rate. B.the cost of activities based on an activity rate times the number of activity-based usage quantities. allocation of budgeted revenues produced by a product or service. end-of-year allocation of costs to products or services. Question 28 of 402.5 PointsThe process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called:A.depletion. B.deferral. C.amortization. D.depreciation. Question 29 of 402.5 PointsInventory refers to the:A.merchandise held for sale in the normal course of business. B.materials sold during the year. C.assets purchased to assist the production process. arising from the purchase of raw material. Question 30 of 402.5 PointsDirect materials, work-in-process, and finished goods inventory are most likely to be reported on the balance sheet of a(n) consultant. B.apparel boutique. C.automobile company. company. Question 31 of 402.5 PointsWhen companies sell their receivables to other companies, the transaction is called factoring.A. TrueB. FalseQuestion 32 of 402.5 PointsHill Co. can further process Product O to produce Product P. Product O is currently selling for $65 per pound and costs $42 per pound to produce. Product P would sell for $82 per pound and would require an additional cost of $13 per pound to produce. The differential revenue of producing Product P is $17 per pound.A. TrueB. FalseQuestion 33 of 402.5 PointsWhich one of the following is not a characteristic generally evaluated in ratio analysis?A.Liquidity B.Profitability C.Solvency D.Marketability Question 34 of 402.5 PointsIf 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. TrueB. FalseQuestion 35 of 402.5 PointsSince merchandise inventory is normally sold within a year, how is it reported on the balance sheet?A.As a revenue B.As the cost of merchandise sold C.It does not appear on the balance sheet D.As a current asset Question 36 of 402.5 PointsIn reference to a promissory note, the person who makes the promise to pay is called the:A.maker. B.payee. C.seller. D.receiver. Question 37 of 402.5 PointsLong-lived assets that are intangible in nature, used in the operations of the business and not held for sale in the ordinary course of business are called fixed assets.A. TrueB. FalseQuestion 38 of 402.5 PointsIn a transaction where purchased merchandise has been returned, the buyer will increase the Sales Returns and Allowances account and the seller will increase the Purchases Returns and Allowances account.A. TrueB. FalseQuestion 39 of 402.5 PointsThe reduction in the par or stated value of common stock, accompanied by the issuance of a proportionate number of additional shares, is called a stock split.A. TrueB. FalseQuestion 40 of 402.5 PointsIf the cost of employee wages is not a significant portion of the total product cost, the wages are classified as factory overhead cost.A. TrueB. False


Paper#40704 | Written in 18-Jul-2015

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