Professional Documents
Culture Documents
1outof1points
Managerialaccountingplacesconsiderableweighton:
Selected
Answer:
d.
detailedsegmentreportsaboutdepartments,products,andcustomers
Answer
Feedback:
Yes.Managerialaccountingismoreconcernedwithsegmentsandproductlines
thanfinancialaccounting,whichismoreconcernedwithpresentingfinancial
informationonthewholecompany.
Question2
1outof1points
Asportinggoodsmanufacturerbuyswoodasadirectmaterialforbaseballbats.TheForming
Departmentprocessesthebaseballbats,andthebatsarethentransferredtotheFinishingDepartment
whereasealantisapplied.TherewasnobeginningworkinprocessinventoryintheForming
DepartmentinMay.TheFormingDepartmentbeganmanufacturing10,000CaseySluggerbaseball
batsduringMay.CostsfortheFormingDepartmentforthemonthofMaywereasfollows:Direct
materialswas$33,000andconversioncostswas$17,000.Atotalof8,000batswerecompletedand
transferredtotheFinishingDepartmentduringMay.Theendingworkinprocessinventorywas100%
completewithrespecttodirectmaterialsand25%completewitherespecttoconversioncosts.The
companyusestheweightedaveragemethodofprocesscosting.Thecostoftheunitstransferredtothe
FinishingDepartmentduringMaywas:
Selected
Answer:
d.
$42,400.
Answer
Feedback:
Correct.ThecorrecttotalEUof$5.30ismultipliedbythe8,000unitscompleted
andtransferred,givingcostsof$42,400.
Question3
0outof1points
Purchasingadvertisingonaccountwould:
Selected
Answer:
a.
increaseassetsandincreaseliabilities
Answer
Purchasingadvertisingwouldincreaseadvertisingexpense,andthusreduce
Feedback:
owners'equity.
Question4
1outof1points
Thebeginninginventoryandpurchasesforthismonthare(beginninginventoryunitat$1;purchases1
unitat$5and1unitat$10.)Iftwounitsaresold,thentheendinginventoryunderLIFOis:
Selected
Answer:
a.
$1
Answer
Feedback:
Yes.EndinginventoryforFIFOiscalculatedusingbeginninginventoryplus
purchasesminusmerchandisesoldusingearliestcostofmerchandisepurchased.
Question5
1outof1points
Whichisnotanobjectiveofinternalcontrol?
SelectedAnswer:
d.
externalauditorstestforfraud
AnswerFeedback:
Yes.Thisiscorrectanswerbecausethecontrolisexternal,notinternal.
Question6
1outof1points
Themostcommonwayacompanydiscoversfraudisby
SelectedAnswer:
c.
tipsfromemployees,customers,orsuppliers
AnswerFeedback:
Otherpeoplewillratyououttimeaftertime.
Question7
1outof1points
Equipmentwithabookvalueof$45,000isofferedforsaleat$65,000.Theequipmentisacquiredfor
$10,000incashandanotepayableof$40,000duein30days.Theamountusedinthebuyer's
accountingrecordstorecordthisacquisitionis:
Selected
Answer:
a.
$50,000
Answer
Feedback:
Yes.Thisisthecorrectanswerbecauseequipmentisrecordedatitscost
($10,000+$40,000).
Question8
0outof1points
Theprocessofrewritingtheinformationfromthejournalintotheledgeriscalled
Selected
Answer:
c.
journalizing
Answer
Feedback:
Journalizingreferstheoriginalrecordingofatransactionusingdebitsand
creditsinthejournal.
Question9
1outof1points
Thematurityvalueofaninterestbearingnotepayableisthe:
Selected
Answer:
a.
facevalueplustheinterest
Answer
Feedback:
Yes.Thisiscorrectbecausethematurityvalueofaninterestbearingnoteconsists
oftwocomponents,facevalue(theprincipal)andinterest.
Question10
1outof1points
Thethreephasesofsettingupanaccountingsystemare,inorder:
Selected
Answer:
b.
analysis,design,implementation
Answer
Feedback:
Tosetupandmaintainanefficientaccountingsystem,youmustgothroughthree
phasesinthefollowingorder;Firstyoumustanalyzeforthesystem,onlythencan
youdesignanaccountingsystem,andfinallyyoucanimplementthesystem.
Question11
1outof1points
Whenafirmusesinternalauditors,itisadheringtowhichoneofthefollowinginternalcontrol
elements?
a..riskassessment
Selected
Answer:
a.
monitoring
Answer
Feedback:
Whenafirmusesinternalauditors,itisadheringtothemonitoringelementof
internalcontrolsbecausethisisthegroupprimarilyresponsibleforreviewand
appraisaloftheaccountingsystem.
Question12
1outof1points
Whenthesellingdivisioninaninternaltransferhasunsatisfieddemandfromoutsidecustomersfor
theproductthatisbeingtransferred,thenthelowestacceptabletransferpriceasfarastheselling
divisionisconcernedis:
Selected
Answer:
c.
themarketpricechargedtooutsidecustomers,lesscostssavedbytransferring
internally.
Answer
Feedback:
Outsidecustomerswouldhavecoveredfixedcostsandaportionoftheprofits,and
theseamountsmustbereplacedwhenthereisunsatisfiedoutsidedemand.
Question13
0outof1points
Thebeginninginventoryandpurchasesforthismonthare(beginninginventoryunitat$1;purchases1
unitat$5and1unitat$10.)Iftwounitsaresold,thenthecostofgoodssoldunderFIFOis:
SelectedAnswer:
c.
$10
AnswerFeedback:
No.thisrepresentsendinginventoryunderFIFO.
Question14
1outof1points
PadreeCompanyplanstosell12,000unitsduringthemonthofAugust.Ifthecompanyhas2,500
unitsonhandatthestartofthemonth,andplanstohave2,000unitsonhandattheendofthemonth,
howmanyunitsmustbeproducedduringthemonth?
SelectedAnswer:
a.
11,500.
AnswerFeedback:
2,500beginning+??produced12,000sold=2,000attheend.
Question15
1outof1points
Theformulaforcontributionmarginis:
Selected
Answer:
c.
salesvariablecosts
Answer
Feedback:
Salesminusvariablecosts=contributionmargin,ortheamounteachunitsold
contributestothebottomline.
Question16
1outof1points
Thetotalcontributionmargindecreasesifsalesvolumeremainsthesameand:
Selected
Answer:
c.
variableexpenseperunitincreases
Answer
Feedback:
Yes.Contributionmarginequalssellingpriceperunitminusvariablecostperunit.
Soifthevariablecostincreases,thenthecontributionmargindecreases(aslongas
therevenueremainsconstant).
Question17
1outof1points
Testingisaprototypeofanewproductisanexampleofa:
SelectedAnswer:
c.
Productlevelactivity.
AnswerFeedback:
Aproducttestisaproductlevelactivity.
Question18
1outof1points
CompanyAissuescommonstockthisperiod.Thistransactionwouldshowonthestatementofcash
flowsas:
Selected
Answer:
c.
cashto/fromfinancing
Answer
Feedback:
Yes.Thisisthecorrectanswerbecausethecashinflowsforfinancingactivities
arisefromissuingbonds,notespayableandpreferredandcommonstock.
Question19
1outof1points
CurtisCompanyanticipatesselling10,000unitsnextyear.Thecompanywantstoearnanetincome
equalto10%ofsales.Ifvariableexpensesare$12perunitandfixedexpensestotal$78,000peryear,
whatsellingpricemustbeestablishedtoachievethedesiredlevelofnetincome?
Selected
Answer:
d.
$22.00perunit.
Answer
Feedback:
Sellingtheproductat$22.00perunitwouldmakeaprofitof$22,000.This
amountis10%ofsales,afteraccountingforthetotalcostof$198,000.
Question20
0outof1points
Thefollowinglaborstandardshavebeenestablishedforaparticularproduct:Standardlaborhoursper
unitofoutput1.7hoursandstandardlaborrate$14.05perhour.Thefollowingdatapertainto
operationsconcerningtheprodutforthelastmonth:Actualhoursworked3,700hours,actualtotal
laborcost$50,690,andactualoutput2,300units.Whatisthelaborratevarianceforthemonth?
Selected
Answer:
c.
$4,246F.
Answer
Feedback:
Thelaborvarianceformulais(AH*AR)(AH*SR.)Theproblemdoesnot
providetheAR,butdoesgivetheinformationtofindit.50,690/3,700=13.70.
Question1
0outof1points
Theinterestrateusedtofindthepresentvalueofafutureamountisknownasthe
SelectedAnswer:
ResponseFeedback:
c.
discountrate.
interestratemeaningthepriceyoupaytoborrowthemoney
Question2
1outof1points
Riskisusedinterchangeablywith____________torefertothevariabilityofreturns.
SelectedAnswer:
b.
uncertainty
Question3
1outof1points
Themorefixedcostdebtafirmuses,
SelectedAnswer:
a.
thegreateritsfinancialleverage.
Question4
1outof1points
Thechancethatrateswillchangeandtherebychangetherequiredrateofreturnisknownas
_________________.
SelectedAnswer:
Question5
1outof1points
c.
interestraterisk
ThedecisionruleforIRRis:
SelectedAnswer:
c.
AcceptiftheIRRisgreaterthantherequiredrateofreturn.
Question6
1outof1points
Thefinancialsituationwhereafirmhasonlyafixednumberofdollarsavailableforcapital
expendituresisknownas________________.
SelectedAnswer:
b.
capitalrationing
Question7
1outof1points
Thebookvalueofanassetisequaltothe
SelectedAnswer:
b.
originalpurchasepriceminusaccumulateddepreciation.
Question8
1outof1points
Betaofthemarketis_____bydefault,andthebetaofaRisklessassetis_____.
SelectedAnswer:
b.
1.0;0.0
Question9
0outof1points
The__________isthecashflowreceivedfromaninvestmentoveragivenperiod,andthe
______________isthepositivechangeinvalueoverthetimeperiod.
SelectedAnswer:
b.
return;capitalgain
Response
Feedback:
Iyoureceiveapaymentinthemailtoday,itisspendableincome,butifthestock
goesupinvalue,yourgainsarenotmeasureduntilyousellifever.Capitalrefersto
youroriginalinvestment.Alossisareductioninvalue,areturnisthetotalprofit
fromallsources.
Question10
1outof1points
Youutilizethefollowingtradingruletoinvestinstocks:buywhenthepricefallsbyatleast7%,and
sellwhenthepricerisesbyatleast7%.Ifyoucanusethisruletoearnexcessreturnconsistently,you
havediscoveredaviolationof________marketefficiency.
SelectedAnswer:
d.
weakform
Question11
1outof1points
Aninvestorcouldchoosetodiversifyinternationallyby
SelectedAnswer:
d.
alloftheabove.
Question12
1outof1points
Anapproachtodividendvaluationthatassumesaconstantnongrowingdividendstreammostclosely
describes
SelectedAnswer:
b.
thezerogrowthmodel.
Question13
1outof1points
______________poolfundsfromsaversandmakethemavailabletobusinessandgovernment
demanders.Theyobtainfundsthroughthesaleofsharesandusetheproceedstoacquirebondsand
stocks.
SelectedAnswer:
b.
Mutualfunds
Question14
0outof1points
Whichfinancialinstrumentmightfirmsuseasanalternativetoorasubstituteforashorttermbank
loan?
SelectedAnswer:
Response
Feedback:
[NoneGiven]
Corporationscanborrowfrombanks,butbankshavehighoverheadcosts,thus
chargehigherintereststoabusinessthanifthebusinessissueditsowndocuments
andsoldthemdirectly,ineffectissuingapaperthatrepresentstheirpromisetorepay
theshorttermdebt.ThegovernmentissesTreasuries,banksissueCDs,andmutual
fundsarefinancialinstitutions.
Question15
0outof1points
Activityratiostendtodealwithmattersof
SelectedAnswer:
Response
Feedback:
[NoneGiven]
activityasinpayingbillsandsellinginventoryorcollectingaccounts
receivables
Question16
0outof1points
Onacommonsizeincomestatementeachitemisexpressedasapercentageof
SelectedAnswer:
Response
Feedback:
[NoneGiven]
Commonsizingisdividingthrubylargestnumber.Revenueisonanincome
statement,assetsareonthebalancesheet.Thesearethelargestfiguresontheir
respectivefinancialstatements
Question17
0outof1points
Assumingapositiveinterestrateandotherthingsbeingequal,morefrequentcompoundingwillcause
thefuturevalueto____________________.
SelectedAnswer:
ResponseFeedback:
[NoneGiven]
morefrequentcompoundinginayearraisestheeffectivereturn
Question18
0outof1points
Shorttermfinancingthathasspecificassetspledgedascollateralis
SelectedAnswer:
Response
Feedback:
[NoneGiven]
collateralistheitemthatsecurestheloanandisrepossessedfornonpayment.A
creditcardisanunsecuredtransactionmeaningtheitemsboughtcannotbe
repossessed.
Question19
0outof1points
Acustomersendspaymenttoapostofficeboxthatisemptiedbythefirm'sbankdaily.Thebankthen
processesthepaymentsandnotifiesthefirmoftheday'scollections.Thiscollectiontechniqueis
knownas
SelectedAnswer:
Response
Feedback:
[NoneGiven]
Thepostofficeboxwhereabankcollectsyourmailtofindcheckstoprocessto
cutoutcheckfloatandsaveyouthetimevalueofthemoneyyouweresent.
Question20
0outof1points
Thefollowingstatementdescribesbesttheroleof____________.Theyusefinancialstatementsto
understandthefirm'sfinancialactivitiesandassesswhethertopurchaseorsellthefirm'ssecurities.
SelectedAnswer:
ResponseFeedback:
[NoneGiven]
whatindividualsdoisbeingreferredtohere