ment.
C.system is used to control cash receipts.
D.system is an internal control procedure to verify that the assets in the records are the ones the company owns.
Question 9 of 402.5 Points

Money market funds, commercial paper, and U.S. Treasury Bills are examples of cash equivalents.

A. True
B. False
Question 10 of 402.5 Points

Which of the following accounts is reported in the noncurrent liabilities section of the corporate balance sheet?

A.Bonds Payable
B.Common Stock
C.Dividends Payable
D.Cash
Question 11 of 402.5 Points

Which one of the following is not a characteristic generally evaluated in ratio analysis?

A.Liquidity
B.Profitability
C.Solvency
D.Marketability
Question 12 of 402.5 Points

Under the accrual basis of accounting, net cash flows from operating activities on the statement of cash flows will normally be the same as net income.

A. True
B. False
Question 13 of 402.5 Points

Activity-based costing is a method of accumulating and allocating costs by department.

A. True
B. False
Question 14 of 402.5 Points

Inventories of merchandising and manufacturing businesses are reported as current assets on the balance sheet.

A. True
B. False
Question 15 of 402.5 Points

The purpose of an audit is to:

A.determine whether or not a company is a good investment.
B.render an opinion on the fairness of the statements.
C.determine whether or not a company complies with income tax regulations.
D.determine whether or not a company has a good credit risk.
Question 16 of 402.5 Points

In using the total cost concept of applying the cost-plus approach to product pricing, only profit is covered in the markup.

A. True
B. False
Question 17 of 402.5 Points

Using the job order cost system, service businesses are able to bill clients on a weekly or monthly basis, even when the job has not been completed.

A. True
B. False
Question 18 of 402.5 Points

The __________ is prepared with various sections, subsections, and captions that aid in its interpretation and analysis.

A.accounting equation
B.retained earnings statement
C.intangible asset section
D.classified balance sheet
Question 19 of 402.5 Points

The framework that has become widely accepted as the standard by which companies design, analyze, and evaluate internal controls is the:

A.Internal Control – Integrated Framework by the Committee of Sponsoring Organizations.
B.Internal Control – Integrated Framework by the Congress of Special Offerings.
C.Internal Control Localized Structure by the Committee of Sponsoring Organizations.
D.Internal Control Localized Structure by the Congress of Special Offerings.
Question 20 of 402.5 Points

Fixed assets are reported at their book value on the balance sheet.

A. True
B. False
Question 21 of 402.5 Points

If employees accept a wage contract that decreases the unit contribution margin, the break-even point will decrease.

A. True
B. False
Question 22 of 402.5 Points

If paid-in capital in excess of par-preferred stock is $80,000, preferred stock is $500,000, paid-in capital in excel of par-common stock is $50,000, common stock is $1,000,000, and retained earnings is $230,000, the total stockholders’ equity is $1,860,000.

A. True
B. False
Question 23 of 402.5 Points

The estimated amount that an asset can be sold for at the end of its useful life is called its book value.

A. True
B. False
Question 24 of 402.5 Points

The document authorizing the issuance of materials from the storeroom for use in manufacturing is called:

A.materials requisition.
B.purchase requisition.
C.receiving report.
D.purchase order.
Question 25 of 402.5 Points

If a company has current assets totaling $56,000 and current liabilities totaling $40,500, then the company’s working capital totals $15,500.

A. True
B. False
Question 26 of 402.5 Points

Under which method of inventory costing is the cost flow assumed to be in the reverse order in which the expenditures were made?

A.Average cost
B.Last-in, first-out
C.First-in, first-out
D.Specific identification method
Question 27 of 402.5 Points

The process of a company selling its accounts receivable to another company is referred as:

A.discounting.
B.adjusting.
C.assignment.
D.factoring.
Question 28 of 402.5 Points

Which of the following is a characteristic of the just-in-time philosophy?

A.Increases inventory to protect against process problems
B.Tolerates defects
C.Emphasizes push manufacturing
D.Emphasizes product-oriented layout
Question 29 of 402.5 Points

Reporting under managerial accounting is not restricted by specific rules such as generally accepted accounting principles (GAAP).

A. True
B. False
Question 30 of 402.5 Points

Management’s philosophy and operating style would affect which of the following elements of internal control?

A.Risk assessment
B.Monitoring
C.Control environment
D.Information and communication
Question 31 of 402.5 Points

The objective of most businesses is to maximize profits.

A. True
B. False
Question 32 of 402.5 Points

The payment of a liability:

A.decreases assets and stockholders’ equity.
B.increases assets and decreases liabilities.
C.decreases assets and increases liabilities.
D.decreases assets and decreases liabilities.
Question 33 of 402.5 Points

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as factory overhead cost.

A. True
B. False
Question 34 of 402.5 Points

If the total unit cost of manufacturing Product Y is currently $40 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $48.

A. True
B. False
Question 35 of 402.5 Points

Which of the following information is not provided by job cost sheets?

A.Cost impact of materials changes
B.Cost impact of continuous improvement in the manufacturing process
C.Change in materials price or direct labor rate over time
D.Utilities, managerial salaries, and depreciation of computers in the corporate office
Question 36 of 402.5 Points

What are current liabilities?

A.Liabilities that are due and payable within two years.
B.Liabilities that are due and to be paid out of the current assets within one year.
C.Liabilities that are due but not payable for more than one year.
D.Liabilities that are payable if a possible subsequent event occurs.
Question 37 of 402.5 Points

When a business sells more than one product at varying selling prices, the business’s break-even point can be determined as long as the number of products does not exceed:

A.two.
B.three.
C.fifteen.
D.there is no limit.
Question 38 of 402.5 Points

Under the cash basis of accounting, expenses are recorded when paid.

A. True
B. False
Question 39 of 402.5 Points

A practical approach that is frequently used by managers when setting normal selling price is the:

A.cost-plus approach.
B.economic theory approach.
C.price graph approach.
D.market price approach.
Question 40 of 402.5 Points

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

A. True
B. FalseClick here to have a similar paper done for you by one of our writers within the set deadline at a discounted

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ment.
C.system is used to control cash receipts.
D.system is an internal control procedure to verify that the assets in the records are the ones the company owns.
Question 9 of 402.5 Points

Money market funds, commercial paper, and U.S. Treasury Bills are examples of cash equivalents.

A. True
B. False
Question 10 of 402.5 Points

Which of the following accounts is reported in the noncurrent liabilities section of the corporate balance sheet?

A.Bonds Payable
B.Common Stock
C.Dividends Payable
D.Cash
Question 11 of 402.5 Points

Which one of the following is not a characteristic generally evaluated in ratio analysis?

A.Liquidity
B.Profitability
C.Solvency
D.Marketability
Question 12 of 402.5 Points

Under the accrual basis of accounting, net cash flows from operating activities on the statement of cash flows will normally be the same as net income.

A. True
B. False
Question 13 of 402.5 Points

Activity-based costing is a method of accumulating and allocating costs by department.

A. True
B. False
Question 14 of 402.5 Points

Inventories of merchandising and manufacturing businesses are reported as current assets on the balance sheet.

A. True
B. False
Question 15 of 402.5 Points

The purpose of an audit is to:

A.determine whether or not a company is a good investment.
B.render an opinion on the fairness of the statements.
C.determine whether or not a company complies with income tax regulations.
D.determine whether or not a company has a good credit risk.
Question 16 of 402.5 Points

In using the total cost concept of applying the cost-plus approach to product pricing, only profit is covered in the markup.

A. True
B. False
Question 17 of 402.5 Points

Using the job order cost system, service businesses are able to bill clients on a weekly or monthly basis, even when the job has not been completed.

A. True
B. False
Question 18 of 402.5 Points

The __________ is prepared with various sections, subsections, and captions that aid in its interpretation and analysis.

A.accounting equation
B.retained earnings statement
C.intangible asset section
D.classified balance sheet
Question 19 of 402.5 Points

The framework that has become widely accepted as the standard by which companies design, analyze, and evaluate internal controls is the:

A.Internal Control – Integrated Framework by the Committee of Sponsoring Organizations.
B.Internal Control – Integrated Framework by the Congress of Special Offerings.
C.Internal Control Localized Structure by the Committee of Sponsoring Organizations.
D.Internal Control Localized Structure by the Congress of Special Offerings.
Question 20 of 402.5 Points

Fixed assets are reported at their book value on the balance sheet.

A. True
B. False
Question 21 of 402.5 Points

If employees accept a wage contract that decreases the unit contribution margin, the break-even point will decrease.

A. True
B. False
Question 22 of 402.5 Points

If paid-in capital in excess of par-preferred stock is $80,000, preferred stock is $500,000, paid-in capital in excel of par-common stock is $50,000, common stock is $1,000,000, and retained earnings is $230,000, the total stockholders’ equity is $1,860,000.

A. True
B. False
Question 23 of 402.5 Points

The estimated amount that an asset can be sold for at the end of its useful life is called its book value.

A. True
B. False
Question 24 of 402.5 Points

The document authorizing the issuance of materials from the storeroom for use in manufacturing is called:

A.materials requisition.
B.purchase requisition.
C.receiving report.
D.purchase order.
Question 25 of 402.5 Points

If a company has current assets totaling $56,000 and current liabilities totaling $40,500, then the company’s working capital totals $15,500.

A. True
B. False
Question 26 of 402.5 Points

Under which method of inventory costing is the cost flow assumed to be in the reverse order in which the expenditures were made?

A.Average cost
B.Last-in, first-out
C.First-in, first-out
D.Specific identification method
Question 27 of 402.5 Points

The process of a company selling its accounts receivable to another company is referred as:

A.discounting.
B.adjusting.
C.assignment.
D.factoring.
Question 28 of 402.5 Points

Which of the following is a characteristic of the just-in-time philosophy?

A.Increases inventory to protect against process problems
B.Tolerates defects
C.Emphasizes push manufacturing
D.Emphasizes product-oriented layout
Question 29 of 402.5 Points

Reporting under managerial accounting is not restricted by specific rules such as generally accepted accounting principles (GAAP).

A. True
B. False
Question 30 of 402.5 Points

Management’s philosophy and operating style would affect which of the following elements of internal control?

A.Risk assessment
B.Monitoring
C.Control environment
D.Information and communication
Question 31 of 402.5 Points

The objective of most businesses is to maximize profits.

A. True
B. False
Question 32 of 402.5 Points

The payment of a liability:

A.decreases assets and stockholders’ equity.
B.increases assets and decreases liabilities.
C.decreases assets and increases liabilities.
D.decreases assets and decreases liabilities.
Question 33 of 402.5 Points

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as factory overhead cost.

A. True
B. False
Question 34 of 402.5 Points

If the total unit cost of manufacturing Product Y is currently $40 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $48.

A. True
B. False
Question 35 of 402.5 Points

Which of the following information is not provided by job cost sheets?

A.Cost impact of materials changes
B.Cost impact of continuous improvement in the manufacturing process
C.Change in materials price or direct labor rate over time
D.Utilities, managerial salaries, and depreciation of computers in the corporate office
Question 36 of 402.5 Points

What are current liabilities?

A.Liabilities that are due and payable within two years.
B.Liabilities that are due and to be paid out of the current assets within one year.
C.Liabilities that are due but not payable for more than one year.
D.Liabilities that are payable if a possible subsequent event occurs.
Question 37 of 402.5 Points

When a business sells more than one product at varying selling prices, the business’s break-even point can be determined as long as the number of products does not exceed:

A.two.
B.three.
C.fifteen.
D.there is no limit.
Question 38 of 402.5 Points

Under the cash basis of accounting, expenses are recorded when paid.

A. True
B. False
Question 39 of 402.5 Points

A practical approach that is frequently used by managers when setting normal selling price is the:

A.cost-plus approach.
B.economic theory approach.
C.price graph approach.
D.market price approach.
Question 40 of 402.5 Points

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.

A. True
B. FalseClick here to have a similar paper done for you by one of our writers within the set deadline at a discounted

Leave a Reply

Your email address will not be published. Required fields are marked *