) What effect do current technology changes have on managerial accounting? A. Reduction of reporting costs of managerial accounting information B. Increase in product costs C. Creation of the middleman D. Reduction of emphasis on the value chain
2) The standards and rules that are recognized as a general guide for financial reporting are called ______. A. standards of financial reporting B. generally accepted accounting principles C. generally accepted accounting standards D. operating guidelines
3) If a company reports a net loss, it ______. A. will not be able to make capital expenditures B. will not be able to pay cash dividends C. may still have a net increase in cash D. will not be able to get a loan
4) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point? A. 2,133 units B. 6,200 units C. $25,600 D. 4,600 units
5) What is the preparation of reports for each level of responsibility in the company’s organization chart called? A. Master budgeting analysis B. Exception reporting C. Responsibility reporting D. Static reporting
6) In what situations will a static budget be most effective in evaluating a manager's effectiveness? A. The company has no fixed costs. B. The planned activity levels match actual activity levels. C. The company has substantial variable costs. D. The company has substantial fixed costs.
7) Multinational corporations ______. A. are U.S. companies that trade their securities on the exchanges in other countries B. are firms that conduct their operations in more than one country through subsidiaries, divisions, or branches in foreign countries C. are U.S. companies that sell goods and services in other countries D. are required to use international accounting standards
8) The primary purpose of the statement of cash flows is to ______. A. facilitate banking relationships B. provide information about the cash receipts and cash payments during a period C. prove that revenues exceed expenses if there is a net income D. provide information about the investing and financing activities during a period
9) The conceptual framework developed by the Financial Accounting Standards Board ______. A. is legally binding on all accountants B. is viewed as providing a constitution for setting accounting standards for financial reporting C. are rules that all accountants must follow D. was approved by a vote of all accountants
10) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase? A. $6,000 B. $12,000 C. $28,000 D. $18,000
11) These are selected account balances on December 31, 2008. Land (location of the corporation’s office building) $150,000 Land (held for future use) 225,000 Corporate Office Building 900,000 Inventory 300,000 Equipment 675,000 Office Furniture 150,000 Accumulated Depreciation 450,000 What is the net amount of property, plant, and equipment that will appear on the balance sheet? A. $1,425,000 B. $2,400,000 C. $1,650,000 D. $1,950,000
12) The first step in activity-based costing is to ______. A. identify the cost driver that has a strong correlation to the activity cost pool B. identify and classify the major activities involved in the manufacture of specific products C. compute the activity-based overhead rate per cost driver D. assign manufacturing overhead costs for each activity cost pool to products
13) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 The net income (or loss) for the period is ______. A. not determinable B. $10,000 loss C. $10,000 income D. $48,000 income 14) Which one of the following is a product cost? A. Advertising costs B. Indirect labor C. Office salaries D. Sales person’s salaries