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Financial accounting mcq




Question;6) A;liquidity ratio measures the;short-term;ability of a company to pay its maturing obligations and to meet unexpected;needs for cash.;ability;of a company to survive over a long period of time.;income;or operating success of a company over a period of time.;percentage;of total financing provided by creditors.;9) 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.;that;has been arranged from the lowest number to the highest number.;to;determine which items are in error.;to;determine the amount and/or percentage increase or decrease that has taken;place;10 Vertical analysis is a technique that;expresses each item in a financial statement;starting;with the highest value down to the lowest value.;as a;percent of a base amount.;as a;percent of the item in the previous year.;in;dollars and cent;11)Process costing is used when;the;production process is continuous.;costs;are to be assigned to specific jobs.;dissimilar;products are involved.;production;is aimed at filling a specific customer order.;13)In a process cost system, product costs are;summarized;on;job cost sheets.;on;production cost reports.;after;each unit is produced.;when;the products are sold.;15) Activity-based;costing;assigns;activity cost pools to products and services, then allocates overhead back to;the activity cost pools.;allocates;overhead directly to products and services based on activity levels.;allocates;overhead to multiple activity cost pools, and it then assigns the activity;cost pools to products and services by means of cost drivers.;accumulates;overhead in one cost pool, then assigns the overhead to products and services;by means of a cost driver.;17) The;break-even point is where;contribution;margin equals total fixed costs.;total;sales equal total variable costs.;total;variable costs equal total fixed costs.;total;sales equal total fixed costs.;19) When a;company assigns the costs of direct materials, direct labor, and both variable;and fixed manufacturing overhead to products, that company is using;operations;costing.;product;costing.;absorption;costing.;variable;costing.;4) An income statement;reports;the assets, liabilities, and stockholders? equity at a specific date.;summarizes;the changes in retained earnings for a specific period of time.;presents;the revenues and expenses for a specific period of time.;reports;the changes in assets, liabilities, and stockholders? equity over a period of;time.;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;variable;costing, in order to increase net income.;variable;costing, in order to decrease net income.;absorption;costing, in order to decrease net income.;absorption;costing, in order to increase net income.;21)An unrealistic budget is more likely to result;when it;has been developed in a bottom up fashion.;has been developed by all levels of management.;is developed with performance appraisal usages;in mind.;has been developed in a top down fashion.;23)The purpose of the sales budget report is to;control;sales commissions.;determine;whether income objectives are being met.;control;selling expenses.;determine;whether sales goals are being met.;25)Variance reports are;(a);external financial reports.;(b);SEC financial reports.;(c);internal reports for management.;(d);all of thes;27 The process of evaluating financial data that;change under alternative courses of action is called;double;entry analysis.;incremental;analysis.;contribution;margin analysis.;cost-benefit;analysis.


Paper#41008 | Written in 18-Jul-2015

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