Financial Accounting

1. The petty cash fund of the Brooks Agency is established at $150. At the end o

1. The petty cash fund of the Brooks Agency is established at $150. At the end of the current period, the S 6-5 Petty cash accounting P2 fund contained $28 and had the following r…

1. The petty cash fund of the Brooks Agency is established at $230. At the end o

1. The petty cash fund of the Brooks Agency is established at $230. At the end of the current period, the fund contained $155 and had the following receipts: entertainment, $41; p…

1. The phrase ‘tax rate’ is at least three ways ambiguous. There’s the rate on p

1.       The phrase ‘tax rate’ is at least three ways ambiguous. There’s the rate on paper (before deductions), the effective rate (amount paid as a percentage of profits), and to…

1. The physical inventory shows $90,500. 2. The supplies expenses for the year a

1. The physical inventory shows $90,500. 2. The supplies expenses for the year are $10,200 3. The expired insurance is $1,140 4. Provide depreciation to delivery equipment, store …

1. The point at which products are separated in a joint production process is th

1. The point at which products are separated in a joint production process is the A. split-off point. B. joint product point. C. separation point. D. breakeven point. 2. Relevant …

1. The prepaid insurance account shows a debit of$6,624, representing the cost o

1. The prepaid insurance account shows a debit of$6,624, representing the cost of a 2-year fire insurance policydated August 1 of the current year. 2. On November 1, Rental Revenu…

1. The present worth of an amount of money X that will be received 6 years from

1. The present worth of an amount of money X that will be received 6 years from now is $2,000. At an interest rate of 10% per year, the value of X ten years from now is closest to…

1. The president of Belgium prefers to increase airports security more than decr

1. The president of Belgium prefers to increase airports security more than decreasing air pollution within its borders. He also prefers decreasing air pollution more than reducin…

1. The price-earnings ratio P/E is the ratio (market value of one share)/(earnin

1. The price-earnings ratio P/E is the ratio (market value of one share)/(earnings per share). If P/E increases by 19% and the earnings per share decrease by 9%, determine the per…

1. The price-earnings ratio on common stock is calculated as: earnings per share

1. The price-earnings ratio on common stock is calculated as: earnings per share of common stock, divided by market price per share of common stock. dividends per share of common …

1. The primary difference between a discount rate and a capitalization rate is h

1. The primary difference between a discount rate and a capitalization rate is how the discount rate (method) addresses a.            Growth. b.            Cash flow vs. earnings.…

1. The primary ledger containing all the balance sheet and income statement acco

1. The primary ledger containing all the balance sheet and income statement accounts is the a. general ledger b. creditors ledger c. customers ledger d. subsidiary ledger 2. The c…

1. The primary objective of financial reporting is to provide information. O Use

1. The primary objective of financial reporting is to provide information. O Useful to capital providers. O Concerning the changes in financial position resulting from the income-…

1. The primary objective offinancial accounting is” A) To serve the decision-mak

1.       The primary objective offinancial accounting is” A)     To serve the decision-making needs ofinternal users. B)      To provide financial statementto help external users …

1. The principle managers follow when they only investigate significant departur

1. The principle managers follow when they only investigate significant departures from the plan is commonly known as small amounts don't matter only materials and labor deserve a…

1. The pro forma income statement gives managers an advance estimate of a compan

1. The pro forma income statement gives managers an advance estimate of a company's profitability. true or false 2. Pro forma financial statements are prepared at the end of the y…

1. The production budget is typically prepared prior to the sales budget. True F

1. The production budget is typically prepared prior to the sales budget. True False 2. One benefit of budgeting is that it coordinates the activities of the entire organization. …

1. The production budget is typically prepared prior to the sales budget. True F

1. The production budget is typically prepared prior to the sales budget. True False 2. One benefit of budgeting is that it coordinates the activities of the entire organization. …

1. The production budgets are used to prepare which of the followingbudgets? a.

1.            The production budgets are used to prepare which of the followingbudgets? a. Operating expenses b. Direct materials purchases, direct labor cost, factory overheadcos…

1. The production foreman of a plant in reviewing his records found that an asse

1. The production foreman of a plant in reviewing his records found that an assembly fine had the following production record: 5 years ago 4 years ago 3 years ago 2 years ago Last…

1. The proprietorship form of business organization a. must have at least two ow

1. The proprietorship form of business organization a. must have at least two owners in most states. b. generally receives favorable tax treatment relative to a corporation. c. co…

1. The purchase of an asset (like Equipment) for cash will a) increase total ass

1. The purchase of an asset (like Equipment) for cash will a) increase total assets and increase total liabilities b) have no effect on total assets or liabilities c) increase tot…

1. The purpose of recording depreciation on productive assets is to a. allocate

1. The purpose of recording depreciation on productive assets is to a. allocate the original cost of productive assets to expense over its useful life. b. reduce income when the c…

1. The ratio of fixed expenses to the contribution margin ratio is the a. indiff

1. The ratio of fixed expenses to the contribution margin ratio is the a. indifference point. b. break-even point in units. c. fixed cost ratio. d. break-even point in sales. e. s…

1. The raw materials account of Franklin Inc. reflected the following changes du

1. The raw materials account of Franklin Inc. reflected the following changes during April: Opening balance 500 units @ $10 Received 200 units @ $12 Issued 400 units Issued 100 un…

1. The retained earnings on a budgeted balance sheet can be calculated as: A. As

1. The retained earnings on a budgeted balance sheet can be calculated as: A. Assets minus Liabilities B. Revenue minus variable cost minus fixed costs minus dividends. C. Retaine…

1. The return on investment measure of performance: A. Is relevant only to busin

1. The return on investment measure of performance: A. Is relevant only to business enterprises. B. Is used by individuals to compare investment performance. C. Is calculated usin…

1. The revenue recognition principle indicates that revenue is recognized when I

1. The revenue recognition principle indicates that revenue is recognized when I. The benefits can be measured reliably. II. The sales transaction is initiated and completed. III.…

1. The sales revenue variance is favorable. The S&A expense variance is favorabl

1. The sales revenue variance is favorable. The S&A expense variance is favorable. The wage expense variance is unfavorable. The cost of goods sold variance is favorable. 2. G…

1. The selling and administrative expense budget of Spurlock Corporation is base

1. The selling and administrative expense budget of Spurlock Corporation is based on budgeted unit sales, which are 6,300 units for February. The variable selling and administrati…

1. The standard amount of materials required to make one unit of Product Q is 4

1. The standard amount of materials required to make one unit of Product Q is 4 pounds. Suarez’s static budget showed a planned production of 4,000 units. During the period the co…

1. The standard cost of Product 245 manufactured by Albert Industries includes2

1. The standard cost of Product 245 manufactured by Albert Industries includes2 pounds of direct materials at RM4.00 per pound. During September, 40,000 pounds of direct materials…

1. The standard costs and actual costs for direct materials for the manufacture

1.The standard costs and actual costs for direct materials for the manufacture of 1,000 actual units of prodcut are as follows: Standard Costs Direct Materials (per completed Unit…

1. The standard materials cost to produce 1 unit of Product R is 6 pounds of mat

1. The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material…

1. The standard quantity allowed for the unit produced was 4,500 pounds, the sta

1. The standard quantity allowed for the unit produced was 4,500 pounds, the standard price was $2.50 per pound, and the materials usage variance was $475 favorable. Each unit use…

1. The stated rate of interest and the effective rate of interest are synonymous

1. The stated rate of interest and the effective rate of interest are synonymous terms. This statement is A. True B. False 2. On January 1, Year 1 Residence Company issued bonds w…

1. The statement of financial position shows how well a company has performed ov

1. The statement of financial position shows how well a company has performed over a period of time. True or false? 2. Debt-to-Equity and Debt-to Assets ratios usually provide a c…

1. The steps that criminals take to study their target\'s physical layout to lea

1. The steps that criminals take to study their target's physical layout to learn about the controls it has in place is called D. reconnaissance. 2. Identify the item below which …

1. The stockholder\'s equity section of the Canner Co. balance sheet contains th

1. The stockholder's equity section of the Canner Co. balance sheet contains the following information: 4% Preferred Stock, $100 par value, cumulative, 5,000 shares issued $   500…

1. The stockholder’s equity of Innovative Fitness Products Inc. at December 31,

1.      The stockholder’s equity of Innovative Fitness Products Inc. at December 31, 2013 appears below: Common Stock, $8 par value, 200,000 shares authorized, 120,000 shares issu…

1. The tax benefit that the LIFO method provides might get nullified when: a. un

1. The tax benefit that the LIFO method provides might get nullified when: a.   unit costs tend to decrease as production increases. b.   unit costs tend to increase as production…

1. The term \"receivables\" includes all A) cash to be paid to debtors. B) merch

1. The term "receivables" includes all A) cash to be paid to debtors. B) merchandise to be collected from individuals or companies. C) money claims against other entities. D) cash…

1. The term used for bonds that are unsecured regarding principal is a. junk bon

1. The term used for bonds that are unsecured regarding principal is a. junk bonds. b. debenture bonds. c. in-debenture bonds. c. callable bonds. 2. An electronics store is runnin…

1. The timing strategy becomes more attractive if a taxpayer is able to accelera

1. The timing strategy becomes more attractive if a taxpayer is able to accelerate deductions by two or more years (versus one year). True False 2. When considering cash inflows, …

1. The treasurer of Yoda Inc. needs to estimate cash collections from accounts r

1. The treasurer of Yoda Inc. needs to estimate cash collections from accounts receivable for September, October, and November 2017. Forty percent of the company's customer's pay …

1. The trial balance for the General Fund of the city of Colima on June 30, 2005

1. The trial balance for the General Fund of the city of Colima on June 30, 2005, follows. There were no budgeted or actual other financing sources or other financing uses. City o…

1. The two basic types of cost accounting systems are Select one: a. job order a

1. The two basic types of cost accounting systems are Select one: a. job order and batch systems b. job order and process cost systems c. process cost and batch systems d. job ord…

1. The two fundamental qualitative characteristics financial information must ha

1. The two fundamental qualitative characteristics financial information must have to be decision useful are: A. Relevance and Reliability B. Relevance and Faithful Representation…

1. The type of account and normal balance of Accumulated Depreciation are a) con

1. The type of account and normal balance of Accumulated Depreciation are a) contra asset, debit b) asset, credit c) asset, debit d) liability, credit e) contra asset, credit 2. N…

1. The type of account and normal balance of Accumulated Depreciation are a) con

1. The type of account and normal balance of Accumulated Depreciation are a) contra asset, debit b) asset, credit c) asset, debit d) liability, credit e) contra asset, credit 2. N…