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Acc 561 final exam
- 1. ACC 561Final Exam Howto get student loan Please Call now : 855-457-8818 All of you tired stressed out folks who have had the week from hell, I hope that this Final Exam ( study guide wink - wink ) helps you out. You can thank me at roguephoenix69 facebook 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. appearonlyoncorporate income statements B. appearon the income statementimmediatelyaftergrossprofit C. are revenuesandexpensesarisingfromadjustingentries D. reflectthe effectsoffinancial management decisions ____________________________________________________________________________________ 3. The difference between a single-step and multiple-step income statement is that a single-step income statement _____. A. groupsall revenues together and all expenses together, whereas a multiple- step income statement separatescertain revenues andexpenses from each other and presents subtotals B. calculatesnetincome usingone method,whereasamultiple-stepincome statementcalculatesnetincome usingtwoormore methods C. calculatesgrossprofitandoperatingincome,whereasamultiple-stepincome statementdoesnot D. showsonly1 year's netincome,whereasamultiple-stepincome statement showsmultiple years'netincome ____________________________________________________________________________________
- 2. 4. Which oneof 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 5. 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. ____________________________________________________________________________________ 6. 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 ____________________________________________________________________________________ 7. A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to _____. A. paid-in capital and a credit to retained earnings. B. cash and a credit to common stock. C. retained earnings and a credit to cash. D. cash and a credit to retained income. ____________________________________________________________________________________ How to get student loan Please Call now : 855-457-8818 8. 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 ____________________________________________________________________________________
- 3. 9. _____ isameasure of income orprofitdividedbythe investmentrequiredtoobtain that income orprofit. A. Returnon sales B. Return oninvestment C. Residual income D. Capital turnover ____________________________________________________________________________________ 10. The followinginformationisavailable forthe PeterCompany:Sales$150,000 Invested Capital 156,250 ROI 10% The returnon salesis_____. A. 10.00% B. 62.50% C. 10.42% D. none of these answersiscorrect ____________________________________________________________________________________ How to get student loan Please Call now : 855-457-8818 11. 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% ____________________________________________________________________________________ 12. SpeedoCompany'srevenuesare $300 on investedcapital of $240. Expensesare currently70% of sales.If AngeloCompanycanreduce itsinvestedcapital by20%,return on investmentwillbe _____. A. 75%
- 4. B. 18.75% C. 93.75% D.46.88% ____________________________________________________________________________________ 13. 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 ____________________________________________________________________________________ How to get student loan Please Call now : 855-457-8818 14. In absorptioncosting,costsare separatedintothe majorcategoriesof_____. A. fixedandvariable B. manufacturingandfixed C. manufacturing and nonmanufacturing D. variable andnonmanufacturing ______________________________________________________________________________ 15. _____ is another term for variable costing. A. Full costing B. Direct costing C. Traditional costing D. Absorption costing ________________________________________________________________________ 16. The use of budgeted service department cost rates protects using departments from _____. A. all of these answers are correct B. service outages C. price fluctuations D. service department efficiencies
- 5. ________________________________________________________________________ 17. _____ isan 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 ________________________________________________________________________ How to get student loan Please Call now : 855-457-8818 18. 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 ________________________________________________________________________ 19. Outputmeasuresof bothresourcesandactivitiesare _____. A. cost drivers B. stagesof production C. fixedactivities D. variable activities ________________________________________________________________________ 20. The break-evenpointiswhere_____. A. total salesrevenue equalstotal costplusdesiredprofit. B. the contributionmarginequalsnetincome plusfixedcosts.
- 6. C. total salesrevenue equalstotal cost. D. the variable costequalstotal cost. ________________________________________________________________________ How to get student loan Please Call now : 855-457-8818 21. _____ budgetingiswhenbudgetsare formulatedwiththe active participationof all affectedemployees. A. Financial B. Team C. Participative D. Shared ________________________________________________________________________ 22. _____ isthe logical integrationof managementaccountingtoolstogatherandreport data and to evaluate performance. A. Aninternal control system B. A qualitycontrol system C. A financial-reportingsystem D. A managementcontrol system ________________________________________________________________________ ________________________________________________________________________ 23. _____ are componentsof amasterbudget. A. A strategicplanand an operatingbudget B. An operating budgetand a capital budget C. A continuousbudgetandastatic budget D. A cash budgetandan activitybudget ________________________________________________________________________ 24. Importantfactorsconsideredbysalesforecastersincludeall of the followingexcept _____. A. past patternsof sales
- 7. B. competitors' activities C.the desiredlevel of sales D. marketingresearchstudies ________________________________________________________________________ How to get student loan Please Call now : 855-457-8818 25. _____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix. A. Futuring B. Accounting C. Budgeting analysis D. Financial planning ________________________________________________________________________ 26. Whichof the followingisanobjective of budgeting? A. Budgetingprovidesbenchmarks againstwhichperformancecan be measured. B. Budgetingprovidesafixedfiscal planthatshouldnotbe changedduringthe year. C. Budgetinghelpsmanagersbuildfavorable variancesintothe performance-evaluation process. D. Budgetingisdone exclusivelybythe chief fiscal officerforcontrol purposes ________________________________________________________________________ 27. An organization'sbudgetprogramshould be used A. tohave poweroveremployees. B. to assignblame tomanagersthat do notmeetbudgetarygoals. C. to help managersplanand control the organization’sperformance. D. to helpthe chief fiscal officertoallocate resourcestothe favoredprojects of the executives. ________________________________________________________________________ 28. The activity-basedcostingmayreveal _________, whereastraditional costingcannot. A. high-volumeproductsare overcosted B. low-volume productsare overcosted
- 8. C. bothhigh- andlow-volumeproductsare overcosted D. bothhigh- and low-volume productsare undercosted ________________________________________________________________________ How to get student loan Please Call now : 855-457-8818 29. _____ isa methodof approximatingcostfunctions. A. Cost-driveranalysis B. Transactionanalysis C. Productanalysis D. Account analysis ________________________________________________________________________ 30. In relationtoa cost function,the termreliability refersto_____. A. whetherthe costsandactivitiescanbe easilyobserved B. whetherthe costfunctionconformstoa givenmathematical model C. howwell the costfunctionpredictsfuture costs D. how well the cost functionexplainspastcost behavior ________________________________________________________________________ 31. One of the simplestmethodstomeasure alinearcostfunctionfrompastdata isthe _____. A. regressionanalysismethod B. high–lowmethod C. leastsquaresregressionmethod D. visual-fitmethod ________________________________________________________________________ ANSWER KEY 1. D 2. B 3. A 4. D 5. A
- 9. 6. B 7. B 8.C 9. B 10. B 11. D 12. B 13. A 14. B 15. B 16. C 17. C 18. A 19. C 20. C 21. D 22. B 23. C 24. B 25. A 26. C 27. A 28. D 29. D 30. B