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Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?




Question;Which of the following is;an advantage of corporations relative to partnerships and sole proprietorships?;Reduced legal liability for investors.;Harder to transfer ownership.;Lower taxes.;Most common form of organization.;The group of users of;accounting information charged with achieving the goals of the business is its;managers.;auditors.;investors.;creditors.;Which of the following;financial statements is concerned with the company at a point in time?;Retained Earnings statement.;Income statement.;Statement of cash flows.;Balance sheet.;An income statement;reports the changes in assets, liabilities, and stockholders?;equity over a period of time.;presents the revenues and expenses for a specific period of;time.;reports the assets, liabilities, and stockholders? equity at a;specific date.;summarizes the changes in retained earnings for a specific;period of time.;The most important;information needed to determine if companies can pay their current obligations;is the;relationship between short-term and long-term liabilities.;projected net income for next year.;net income for this year.;relationship between current assets and current liabilities.;A liquidity ratio measures;the;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.;percentage of total financing provided by creditors.;income or operating success of a company over a period of time.;The convention of;consistency refers to consistent use of accounting principles;within industries.;among accounting periods.;among firms.;throughout the accounting periods.;Horizontal analysis is also;known as;linear analysis.;vertical analysis.;common size analysis.;trend analysis.;Horizontal analysis is a;technique for evaluating a series of financial statement data over a period of;time;to determine the amount and/or percentage increase or decrease;that has taken place.;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.;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 the item in the previous year.;as a percent of a base amount.;in dollars and cents.;Process costing is used;when;production is aimed at filling a specific customer order.;dissimilar products are involved.;costs are to be assigned to specific jobs.;the production process is continuous.;An important feature of a;job order cost system is that each job;has its own distinguishing characteristics.;must be completed before a new job is accepted.;consists of one unit of output.;must be similar to previous jobs completed.;In a process cost system;product costs are summarized;on job cost sheets.;when the products are sold.;after each unit is produced.;on production cost reports.;An activity that has a;direct cause-effect relationship with the resources consumed is a(n);cost driver.;product activity.;overhead rate.;cost pool.;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.;accumulates overhead in one cost pool, then assigns the overhead;to products and services by means of a cost driver.;allocates overhead to multiple activity cost pools, and it then;assigns the activity cost pools to products and services by means of cost;drivers.;A cost which remains;constant per unit at various levels of activity is a;fixed cost.;variable cost.;mixed cost.;manufacturing cost.;The break-even point is;where;total sales equal total fixed costs.;total sales equal total variable costs.;contribution margin equals total fixed costs.;total variable costs equal total fixed costs.;Fixed costs are $600,000;and the contribution margin per unit is $150. What is the break-even point?;$4,000,000;1,500 units;4,000 units;$1,500,000;When a company assigns the;costs of direct materials, direct labor, and both variable and fixed;manufacturing overhead to products, that company is using;variable costing.;product costing.;absorption costing.;operations costing.;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 decrease net income.;absorption costing, in order to increase net income.;absorption costing, in order to decrease net income.;variable costing, in order to increase net income;An unrealistic budget is more likely to result;when it;is developed with performance appraisal usages in mind.;has been developed in a bottom up fashion.;has been developed by all levels of management.;has been developed in a top down fashion.;A major element in;budgetary control is;the comparison of actual results with planned objectives.;the preparation of long-term plans.;the valuation of inventories.;approval of the budget by the stockholders.;The purpose of the sales;budget report is to;control sales commissions.;determine whether sales goals are being met.;control selling expenses.;determine whether income objectives are being met.;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.;flexible accounting.;responsibility accounting.;master budgeting.;Variance reports are;(a) external financial reports.;(b) SEC financial reports.;(c) internal reports for management.;(d) all of these.;Internal reports that;review the actual impact of decisions are prepared by;management accountants.;the controller.;factory workers.;department heads.;The process of evaluating;financial data that change under alternative courses of action is called;double entry analysis.;incremental analysis.;cost-benefit analysis.;contribution margin analysis.;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 increase by $8,000.;Income would increase by $40,000.;Income would increase by $140,000.;Income would decrease by $8,000.;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 $30,000;Buy and save $10,000;Make and save $30,000;Make and save $10,000;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?;Process further, the company will be better off by $20,000.;Sell now, the company will be better off by $20,000.;Process further, the company will be better off by $180,000.;Sell now, the company will be better off by $200,000


Paper#51950 | Written in 18-Jul-2015

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