By which acronym is the set of the financial accounting standard board (FASB) accounting rules known?

1. By which acronym is the set of the financial accounting standard board (FASB) accounting rules known?
A. SEC
B. IASB
C. AICPA
D. GAAP
2. Which set of words describe accounting?
A. Objective, numerical, predictive
B. Subjective, operational, organizational
C. Quantitative, financial, useful
D. Qualitative, managerial, conceptual
3.
4. who are the primary users of management accounting information?
A. External users
B. Government regulators
C. Internal users
D. Income tax authorities
5. what is an example of an external transaction that would decrease assets in the financial accounting cycle?
A. Paying utility bills
B. Investing money to start a business
C. Selling a merchandise to customers
D. Taking out a loan
6. A company sold inventory costing $60 000. The customer paid cash of $100,000. How does this transaction affect the selling company’s accounting equation?
A. Assets increased by $160 000, owners’ equity increased by $ 160 000
B. Assets increased by $40 000, owners; equity increased by $40 000
C. Assets increase by $60 000 owners’ equity increase by $60 000
D. Asserts increase by $100 000; owners’ equity increase by $100 000
7. A company sold inventory costing 420 000, the customer…
8. what is an example of a business document used to confirm that a transaction has occurred?
A. Asset account
B. Dividend account
C. Sales invoice
D. Balance sheet
9. the owner of a company invested 4100 000 of their own cash into their business. How does this transaction affect the accounting equation of the business?
A. assets increase by 4100 000; owners’ equity increase by $100 000
B. Assets increase by…
10. A company paid $10 000 cash in wages to its employees. How does this transaction affect the employing company’s accounting equation?
A. Assets decreased by $10 000; expenses increase by $10 000
B. Assets decreased by $10 000; revenue increased by $10 000
C. Assets decreased by $10 000; liability increase by $10 000
D. Assets increase by $10 000 expenses increase by 410 000
11. which type of account are cash, accounts receivable, inventory and equipment all example of?
A. Equity
B. Liability
C. Revenue
D. Asset
12. with respect to the financial statements, what is articulation?
A. The relationship between financial statements such that the total of the assets on the balance sheet is equal to the total of the liabilities and equities on the balance sheet
B. The relationship between financial statements whereby…
13. Which item is a revenue item?
A. Cost of goods sold
B. Sales
C. Accounts receivable
D. Cash
14. which search tool on the SEC’s website is used to find company 10-k filings?
A. Sarbanes-Oxley Act (SOX)
B. Central index key
C. Electronic Data Gathering ANALYSIS AND Retrieval (EDGAR)
D. PUBLIC Company Accounting Oversight Board (PCAOB)
15. Which label is given to the amount of assets consumed through business operations?
A. Liabilities
B. Dividends
C. Expenses
D. Revenues
16. How is the ending balance of retained earning computed?
A. Beginning retained earnings plus net income minus cash
B. Beginning retained earnings plus net income minus dividends
C. Beginning retained earnings plus net income plus cash
D. Beginning retained…
17. which item is an owners’ equity mean?
A. Inventory
B. Mortgage payable
C. Retained earnings
D. Cash
18. for purposes of cash flow classification in the statements of cash flow, what are operating activities?
A. Activities whereby cash is obtained from or repaid to owners and creditors
B. Activities that are part of day-to-day business of a company
C. Activities associated with buying and selling long term assets
19. During the budgeting process, when can management determine the amount needed to be spent on manufacturing overhead during the period?
A. Only after sales and production quantities are known
B. Before bot sales and direct materials purchase quantities are known
C. Only after sales quantities are known but before production quantities are known
D. Before both sales and production quantities are known
20. which factors should be considered when forecasting direct materials purchased for the next month?
A. Projected beginning inventory, direct labor needs and cost of goods sold
B. Cost of goods sold, total manufacturing overhead and accounts payable
C. Desired beginning inventory and cost of goods sold
D. Production needs, desired ending inventory, and amount of beginning inventory
21. what does a manager have control over in a profit center?
A. Bank loans and owner investments
B. Costs and revenues
C. Assets and dividends
D. Retailed earnings and cash
22. under what circumstances does a department report a favorable cost variance
A. Actual cost less than budgeted cost
B. Production cost less than administrative cost
C. Budgeted cost less than actual cost
D. Administrative cost less than production cost
23. Why is it important to review performance over several periods when using segment margin statements to evaluate profit centers?
A. Only cost centers are evaluated using statement for a single period
B. A single period may not be typical of overall performance
C. Budget targets typically cover several periods
D. Only investment centers are evaluated using statements for a single period.
24. Why are indirect costs not included in the evaluation measures for profit centers

25. what problem can occur if direct materials inventories are too low?
A. Excessive storage costs
B. Difficulty with cash collections from customers
C. Delay of production process
D. Excessive financial investment in inventory
26. which statement describe managerial accounting?
A. It includes budget and forecast data
B. It is disseminated to the public
C. It is subject to an independent external audit
D. …
27. what is the example of a managerial accounting report?
A. Statement of cash flows report
B. Balance sheet report
C. Income statement report
D. Product line revenue report
28. what is the main economic activity of a merchandising business?
A. Constructing physical products
B. Producing nonphysical products
C. Purchasing finished goods for resale
D. Combining material, labor and overhead
29. consider the following cost flow computation;
Direct material cost direct labor + cost manufacturing overhead cost + an adjustment for the change in work in progress inventory. What is the result of this computation? \
A. Cost of direct materials inventory
B. Cost of manufacturing overhead
C. Cost of goods manufactured
D. Cost of goods sold
30. what is the classification of the cost of salaries of certified public accountants (CPA) is a CPA firm that performs audit services?
A. Direct materials
B. Direct labor
C. Administrative expense
D. overhead
31. which label is given to the salaries of production supervisors and the wages of security guards in a manufacturing business?
A. Indirect labor
B. Work-in-progress labor
C. Direct labor
D. Administrative labor
32. which label is given to the wages of maintenance people who fix the machines in a furniture factory?
A. Direct labor
B. Administrative wages
C. Work-in-progress labor
D. Manufacturing overhead
33. which type of cost is the total amount paid for rent on a factory building?
A. Administrative cost
B. Manufacturing overhead cost
C. General cost
D. Selling cost
34. which label is given to all items on a factory floor that are not yet completed?
A. Work-in-progress inventory
B. Direct materials inventory
C. Raw material inventory
D. Finished goods inventory
35. which label is given to the wages of the skilled craftspeople who actually make and assemble the pieces in a furniture factory?
A. Manufacturing overhead
B. Period labor
C. Administrative wages
D. Direct labor
36. A company reports these data:
Price per unit =$20
Fixed cost =$16 000
Variable cost per unit =$12
If the company is operating at its break-even point, what is the company’s total contribution margin?
37. a company reports these data: price per unit=$20
Fixed cost per month =$ 6 000
Variable cost per unit= $14
How many units must this company sell each month in order to reach a target profit of 430,000?
A. 6 000 units
B. 5 000 units
C. 3 000 units
D. 4 000 units
38. The sales director of a company is trying to accept an order from a new customer. Because the company has limited production capacity, if the sales director decides to accept this order from the new customer, then the company will have to cancel some orders from existing customers. When making the decisions to accept the order from the new customer, which cost is the cost of the lost sales to existing customers?
A. Opportunity cost
B. Product cost
C. Suck cost
D. Out of product cost
39. what label is given to the difference between sales and variables costs?
A. Contribution margin
B. Gross margin
C. Operating margin
D. Segment margin
40. why are direct costs important when deciding whether to shut down or keep a product line?
A. Direct costs are the costs that will continue to be allocated by company headquarters even if the product line were to be…
B. ..
41. which cost is a mixed cost?
A. Rental contract with a minimum amount of rent plus a percentage of sales
B. Supplier contract to purchase both food and paper products for a restaurant
C. Supplier contract to purchase direct materials for a factory raw materials warehouse
D. Insurance contract for a factory for which the monthly insurance amount is the same each month
42. A company reports these data.
Selling price per unit=$5.00
Variable cost per unit $2.00
Number of units sold 50 000units
Fixed costs $30 000
Given these data, what is the contribution margin per unit?
A. $!
B. $3
C. $2
D. $5
43. in a process costing system, in addition to the units both started and completed during a period, which other work is included in the computation of the amount of work done during a period?
A. Amount of work done to purchase raw materials and have those materials inspected
B. Amount of work done to begin the ending work in process inventory
C. Amount of work done in budgeting and planning for the flow of materials, labor and overhead
D. Amount of work done to prepare the finished goods inventory for final shipment to the customer
44. A company has determined that using different overhead allocation systems would result in basically the same pattern of overhead allocation. Which system would cost less for this company to create and administer?
A. An activity-based costing system
B. A traditional system
C. A cost-volume-profit system
D. A process costing system
45. what are the three general types of overhead activities in an ABC system?
A. Unit level, batch level and product line
B. Material level, labor level, and overhead
C. Actual level, budget level and variance
D. Operating level, investing level, and financing
46. which cost is included in work-in-process inventory?
A. Cost of items completed and waiting for customer
47. What is an important result of using an ABC system?
A. More accurate direct labor costing
B. More informed business decision
C. More informed sales revenue forecasts
D. More accurate direct material costing
48. When is it more appropriate to use a traditional overhead allocation system instead of an ABC system
A. When a company allows customers to request special design changes and there are several product lines.
B.
49. In an ABC system, what is a cost pool?
A. Total overhead cost currently in work-in-process inventory
B. Total overhead identified as being generated by a specific overhead cost activity
C. Total cost of production; the sum of direct labor, and manufacturing over head
D. Total cost required to design and implement an ABC system
50. How are production costs assigned in a process costing system?
51. In a job order costing system, which production cost is allocated rather than being directly associated with a job or product or project?
A. Wages for factor supervisor in a wood furniture plant
B. Wages for assembly-line workers in an automobile plant
C. Cost of concrete in making a road
D. Cost of bricks in making a building
52. When is it more appropriate to use an ABC system instead of a traditional overhead allocation system?
A. When the production process for different products uses infrastructure support services in the same way
B. When a company has only one product line and customer design change requests are not accepted
C. When the production process for each product is basically the same
D. When several different activities are identified that each create overhead cost
53. When should process costing be used?
A. When a company produces a large volume of unique items using a series of item-specific process
B. When a company produces custom-made products only when an order is received from a customer
C. When a company produces a large volume of products using a series of uniform processes
D. When a company produces a small volume of unique items using a series of item specific processes
54. For which production process is process costing the appropriate costing method to use?
A. Manufacturing identical automobiles in a factory
B. Constructing roads and highways
C. Producing engineering designs for custom-made buildings
D. Constructing custom-made homes
55. For which legal consulting business is process costing the appropriate costing method to use?
A. A business that serves estate planning customers…
56. What is an example of direct labor?
A. Wages for a factory supervisor
B. Wages for assembly-line workers in an automobile plant
C. Wages for factory maintenance workers
D. Wages for accounting staff in company headquarters
57 You are given an income statement for endotherm company for the years 20X0,20X1 and 20X2. You will create common-size income statements and conduct an analysis for the company.
57.1 complete the calculation for horizontal analysis in cells D7:D15 for 20’X’1 to 20’X’2
A. First, calculate the percentage change in sales from 20’X’1 TO 20’X’2 in cell D7
B. Copy and paste D7 into cells D8:D15 to calculate the percentage change of the remaining accounts from 20’X’1 TO 20’X’2
57.2. Complete the calculations for horizontal analysis in cells G7:G15 FOR 20’X’1
A. First, calculate the percentage change in sales from 20’X’0 to 20’X’1 in cell G7
B. Copy and paste cell G7 into cells G8:G15 to calculate the percentage change of the remaining accounts from 20’X’0 to 20’X’1
57.3 Complete the calculation for vertical analysis for 20’X’2 in cell E7:E15
A. In cell E7 calculate the percentage of total sales for 20’X’2 shown in that cell
B. Copy and paste cell E7 into cell E8: E: E15 to calculate the percentage of sales for the remaining accounts for 20’X’2
57.4. Complete the calculation for vertical analysis for 20’X’1 in cellH7:H15
A. In cell H7, calculate the percentage of total sales for20’X’1 shown in that cell
B. Copy and paste cell H7into cell H8:H15 to calculate the percentage of sales for the remaining accounts for 20’X’1
57.5 complete the calculation for…
58 Based on your horizontal and vertical analysis, what can you conclude about the company’s profitability?
A. Management should pay attention to the rising cost of production since 20X0
59. which explanation correctly assesses the company’s profitability between20X0 and 20X1?
A. The company’s profitability declined from20X1 to 20X1 due to the production cost
B. The increase in cost of goods sold was offset by decreases in other expenses.
C. The increase in income tax reduced the company’s profit from 20X0 to 20X1
D. The company acquired some interest-bearing debt in 20X1 that reduced profitability.

60. Managing Cash Flow: Managing cash wisely is one of the most important things a company can do. You have the following information for Paradigm Toys., which buys motorcycle parts from various manufacturers and sells them to retail stores. Management has prepared a cash budget for the next three months. Complete the following tasks to create column charts and analyze the cash budget of Paradigm Toys.
60.1 Create a column chart that shows cash availability for each month from January through March.
A. Title the chart “Total Cash Available”.
B. The primary horizontal axis should be months (range (E9:G9), and the primary vertical axis should be dollar amounts.
C. Do not show the legend in the chart.
D. Show the data label for each column.
60.1: Create a column chart that shows cash availability for each month from January through march.
A. Title the chart “Total cash availability”
B. The primary horizontal axis should be months (range E9:G9 and the primary vertical axis should be dollar amounts.)
C. Do not show the legend in the chat
D. Show the data label for each column
60.2. Create a column chart that…
60.3. Create a column chart that shows cash availability for each month from January through March.
A. Title the chart “Net Cash Flows”.
B. The primary horizontal axis should be months (range (E9:G9), and the primary vertical axis should be dollar amounts.
C. Do not show the legend in the chart.
D. Show the data label for each column on the outside end.
E. Place the chart in the designated area.
61. In February and March, the amount of net cash is less than half of January’s net cash. What can Paradigm Toys do to make net cash flows more consistent from month to month?
A. Pay dividends in March instead of February
B. Increase credit sales in November by $30,000.
C. Purchase inventory in proportion to sales instead of purchasing a constant amount.
D. Promote cash sales to reduce credit sales between January and March.
62. The total cash available decreases over the months from January through March. Why does this pattern exist despite the increase in total sales each month from January through March?
A. Because January cash receipts include the large number of credit sales from the previous two months
B. Because January has much lower cash sales compared to February and March.
C. Because there is no cash dividend payment to shareholders in January.
D. Because January has the highest credit sales compared to February and March.