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accounting mcq quiz

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Question;You invested $5,000 in the Cog corporation and $5,000 in the Gear corporation. Both of these corporations have $100 million in total assets. The Cog corporation had a net profit of $5 million and the Gear corporation had a net profit of $10 million. You read their annual reports and both companies had established a goal of having net profit equal to 10% of total assets. Which of the following statements is true regarding these 2 firms?Cog is effective and more efficient than Gear.Cog is effective but less efficient than Gear.Gear is effective and more efficient then Cog.Gear is effective but less efficient than Cog.Cannot tell without more information.2 pointsQuestion 3Sam quit his job as an accountant with We Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $190,000 and total expenses of $110,000. Sam earned anaccounting profit of $40,000.accounting profit of $80,000 and an entrepreneurial profit of $40,000.entrepreneurial profit of $80,000, but an accounting of $40,000.entrepreneurial profit of $80,000.Cannot tell from the information provided.2 pointsQuestion 4Sam quit his job as an accountant with We Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $150,000 and total expenses of $110,000. For Sam the opportunity cost of going into business was$40,000.$110,000.$150,000.zero because he has a profitable business.2 pointsQuestion 5All of the costs that a firm must pay, even if there are no sales, arecontribution costs.fixed costs.variable costs.sales cost.2 pointsQuestion 6Table 5-1. Steel Shelf CompanyCategory CostPayment PeriodCostRentMonthly$ 3,000UtilitiesMonthly1,100InsuranceQuarterly1,200Property TaxesAnnually6,000SteelPer Shelf9.00FormingPer Shelf0.25LaborPer Shelf0.75PricePer Shelf20.00Refer to Table 5-1. The Steel Shelf company has variable costs per unit of ________.$10.00$18.33$20.00$25.00$30,002 pointsQuestion 7Table 5-1. Steel Shelf CompanyCategory CostPayment PeriodCostRentMonthly$ 3,000UtilitiesMonthly1,100InsuranceQuarterly1,200Property TaxesAnnually6,000SteelPer Shelf9.00FormingPer Shelf0.25LaborPer Shelf0.75PricePer Shelf20.00Refer to Table 5-1. The Steel Shelf company has monthly fixed costs of _____ and a contribution margin of _____.$5,000, $10$5,000, $20$5,800, $10$11,300, $10$11,300, $202 pointsQuestion 8Table 5-1. Steel Shelf CompanyCategory CostPayment PeriodCostRentMonthly$ 3,000UtilitiesMonthly1,100InsuranceQuarterly1,200Property TaxesAnnually6,000SteelPer Shelf9.00FormingPer Shelf0.25LaborPer Shelf0.75PricePer Shelf20.00Refer to Table 5-1. The Steel Shelf company has a monthly break-even quantity of _____ shelves.2505005801,130Cannot calculate with information provided.2 pointsQuestion 9Table 5-1. Steel Shelf CompanyCategory CostPayment PeriodCostRentMonthly$ 3,000UtilitiesMonthly1,100InsuranceQuarterly1,200Property TaxesAnnually6,000SteelPer Shelf9.00FormingPer Shelf0.25LaborPer Shelf0.75PricePer Shelf20.00Refer to Table 5-1. If the Steel Shelf Company wants to earn a profit of $3,000 per month they will have to produce _____ shelves.5008001,0001,5002 pointsQuestion 10Table 5-1. Steel Shelf CompanyCategory CostPayment PeriodCostRentMonthly$ 3,000UtilitiesMonthly1,100InsuranceQuarterly1,200Property TaxesAnnually6,000SteelPer Shelf9.00FormingPer Shelf0.25LaborPer Shelf0.75PricePer Shelf20.00Refer to Table 5-1. The Steel Shelf company has annual fixed costs of ________.$5,300$56,400$60,000$69,600$135,6002 pointsQuestion 11Table 5-1. Steel Shelf CompanyCategory CostPayment PeriodCostRentMonthly$ 3,000UtilitiesMonthly1,100InsuranceQuarterly1,200Property TaxesAnnually6,000SteelPer Shelf9.00FormingPer Shelf0.25LaborPer Shelf0.75PricePer Shelf20.00Refer to Table 5-1. The Steel Shelf company has to have annual revenue of _____ in order to break even.$10,000$120,000$69,600$135,600Cannot calculate with information provided.2 pointsQuestion 12The earning power of a company can be defined as the product of 2 factors:fixed asset turnover and cash flow per share.net profit margin and fixed asset turnover.net profit margin and total asset turnover.total asset turnover and earnings per share.

 

Paper#42230 | Written in 18-Jul-2015

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