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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;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

 

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