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ACC 561 Final Exam ACC 561 Final Exam




ACC 561 Final Exam;1.The statement of cash flows is used for _____.;A. showing the relationship of net income to changes in current assets;B. determining a company?s acceptable level of debt financing;C. revealing commitments that may restrict future courses of action;D. evaluating the creditworthiness of the organization;2.Nonoperating items on the income statement _____.;A. appear only on corporate income statements;B. appear on the income statement immediately after gross profit;C. are revenues and expenses arising from adjusting entries;D. reflect the effects of financial management decisions;3.The difference between a single-step and multiple-step income statement is that a single-step income statement _____.;A. groups all revenues together and all expenses together, whereas a multiple-step income statement separates certain revenues and expenses from each other and presents subtotals;B. calculates net income using one method, whereas a multiple-step income statement calculates net income using two or more methods;C. calculates gross profit and operating income, whereas a multiple-step income statement does not;D. shows only 1 year's net income, whereas a multiple-step income statement shows multiple years' net income;4.Which one of the following statements is true?;A. The statement of cash flows reports the cash receipts but not cash payments of an entity over a period of time.;B. Both the statement of cash flows and the income statement determine the net income for a company.;C. Transactions affecting the sale and the purchase or production of goods and services are reported in the financing activities section of the statement of cash flows.;D. Investing activities in the statement of cash flows include acquiring and selling long-term assets.;5.The _____ accounting convention uses the acquisition cost minus depreciation in valuing an asset on the balance sheet.;A. continuity;B. conservatism;C. cost-benefit;D. materiality;6.A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to _____.;paid-in capital and a credit to retained earnings.;cash and a credit to common stock.;retained earnings and a credit to cash.;cash and a credit to retained income.;7.Which type of organization would most likely have work-in-process inventory?;A. A retail store;B. A manufacturing company;C. A service organization;D. A real-estate investment trust;8.____ is a measure of income or profit divided by the investment required to obtain that income or profit.;Return on sales;Return on investment;Residual income;Capital turnover;9.The following information is available for the Peter Company: Sales $150,000 Invested Capital 156,250 ROI 10% The return on sales is _____.;10.00%;62.50%;10.42%;none of these answers is correct;10. The following information is available for the Peter Company;Sales: $500,000;Invested capital: $312,500;ROI: 10%;The return on sales is _____.;A. 10.00%;B. 6.250%;C. 1.000%;D. 62.50%;11. Speedo Company's revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its invested capital by 20%, return on investment will be _____.;75%;18.75%;93.75%;46.88%;12. When the variable costing method is used, fixed factory overhead appears on the income statement as a _____.;A. component of cost of goods sold;B. fixed expense;C. production-volume variance;D. component of gross profit;13. In absorption costing, costs are separated into the major categories of_____.;fixed and variable;manufacturing and fixed;manufacturing and nonmanufacturing;variable and nonmanufacturing;14. _____ is another term for variable costing.;A. Full costing;B. Direct costing;C. Traditional costing;D. Absorption costing;15. The use of budgeted service department cost rates protects using departments from _____.;all of these answers are correct;service outages;price fluctuations;service department efficiencies;16. _____ is an example of the external financial-reporting purpose of the cost management systems.;A. The cost of a manufacturing process;B. The product mix to optimize profitability;C. The amount of inventory that should appear on the balance sheet;D. Budget reporting;17.The level of sales at which revenues equal expenses and net income is zero is called the _____.;A. margin of safety;B. contribution margin;C. break-even point;D. marginal income point;18.Output measures of both resources and activities are _____.;A. cost drivers;B. stages of production;C. fixed activities;D. variable activities;19.The break-even point is where _____.;A. total sales revenue equals total cost plus desired profit.;B. the contribution margin equals net income plus fixed costs.;C. total sales revenue equals total cost.;D. the variable cost equals total cost.;20.____ is an example of the external financial reporting purpose of the cost management systems.;The product mix to optimize profitability;The cost of a manufacturing process;The amount of inventory that should appear on the balance sheet;Budget reporting;21._____ budgeting is when budgets are formulated with the active participation of all affected employees.;A. Financial;B. Team;C. Participative;D. Shared;22._____ is the logical integration of management accounting tools to gather and report data and to evaluate performance.;A. An internal control system;B. A quality control system;C. A financial-reporting system;D. A management control system;23._____ are components of a master budget.;A. A strategic plan and an operating budget;B. An operating budget and a capital budget;C. A continuous budget and a static budget;D. A cash budget and an activity budget;24.Important factors considered by sales forecasters include all of the following except _____.;past patterns of sales;competitors' activities;the desired level of sales;marketing research studies;25._____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix.;Futuring;Accounting;Budgeting analysis;Financial planning;26.Which of the following is an objective of budgeting?;A. Budgeting provides benchmarks against which performance can be measured.;B. Budgeting provides a fixed fiscal plan that should not be changed during the year.;C. Budgeting helps managers build favorable variances into the performance-evaluation process.;D. Budgeting is done exclusively by the chief fiscal officer for control purposes;27.An organization's budget program should be used;A. to have power over employees.;B. to assign blame to managers that do not meet budgetary goals.;C. to help managers plan and control the organization?s performance.;D. to help the chief fiscal officer to allocate resources to the favored projects of the executives.;28.The activity-based costing may reveal _________, whereas traditional costing cannot.;A. high-volume products are overcosted;B. low-volume products are overcosted;C. both high- and low-volume products are overcosted;D. both high- and low-volume products are undercosted;29._____ is a method of approximating cost functions.;A. Cost-driver analysis;B. Transaction analysis;C. Product analysis;D. Account analysis;30.In relation to a cost function, the term reliability refers to _____.;A. whether the costs and activities can be easily observed;B. whether the cost function conforms to a given mathematical model;C. how well the cost function predicts future costs;D. how well the cost function explains past cost behavior;31. One of the simplest methods to measure a linear cost function from past data is the _____.;A. regression analysis method;B. high?low method;C. least squares regression method;D. visual-fit method


Paper#80106 | Written in 18-Jul-2015

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