Accounting Final Exam – Flashcards

Test 1

Which of the following is one of the purposes of the statement of cash flows?

Which of the following sections of the statement of cash flows is presented differently between the direct method and indirect method?

The investing activities section of the statement of cash flows includes activities that affect the long term asset section of the balance sheet

The three major categories included on the statement of cash flows are ______.

1 Transnational company question....

1 Which of the following sections of the statement of cash flows includes the issuance of stock and the payments of cash dividends?

1 Walker corp uses indirect method to prepare the statement of cash flows....

1 Planned investments and cash dividends are deducted from ______ to arrive at free cash flow.

1 Management's discussion and analysis section of the annual report is the companies attempt to explain its financial statements and discuss its performance.

1 A summary of significant accounting policies and explanations of specific items on the financial statements will be given in ______.

1 Which of the following best describes horizontal analysis?

1 Which of the following is the base amount when performing vertical analysis of a balance sheet?

1 Acid test ratio helps to measure a companies ability to pay all its current liabilities if they came due immediately.

1 The disposal of a financial segment would be reported as continued operations.

1 Which of the following statements is true of management accounting?

1 Managerial accounting includes the planning function. Which of the following items would be part of the planning function of the businesses managerial accounting?

1 An ERP _______

1 Which of the following is one of the key standards of ethical practice published by the institute of management accountants?

1 Which of the following is true of service companies?

1 Which of the following is a period cost for a manufacturing company?

1 Which of the following would be considered a direct labor cost for a manufacturing business?

1 Which of the following represents the combined sum of direct materials and direct labor?

1 Total manufacturing costs to account for during the year minus the ending work in process inventory equals the cost of goods manufactured.

Test 2

A job order costing system is used by companies that manufacture batches of unique products or provide specialized services

Which of the following is the correct order of the four steps of tracking product costs

Would an advertising agency use job or process costing? what about a cellphone company

manufactoring overhead is a temporary account used to accumulate indirect production cost

The entry to record the purchase of direct materials on account would include a

The journal entry to record direct labor costs actually incurred involves a debit to the

Which of the following correctly describes the term cost driver

Adelphia Manufactoring issued 80,000 direct materials and 10,000 of indirect materials for production of job 32...... Journal Entry

A manufacturing company completed work on a job. The cost of the job is transferred into a _________ with a _______.

When goods are transferred from the Finished gods inventory account to the COGS account, the product costs move from the income statement to the balance sheet

For a service company, such as an accounting firm, each client is considered a job

Which of the following businesses is most likely to use a process costing system?

Which of the following statements is true of process costing

Under process costing, the costs incurred by each department are recorded in

In a process costing system, equivalent units must be calculated separately for materials and conversion costs

Conversion Costs are

Under process costing, the number of units to account for must always be __________ the number of units accounted for

Assembly department of Smart Inc......... long question

The journal entry to record indirect labor costs incurred includes a debit to manufacturing overhead and credit to wages payable

Nevada Manufacturing has two processing departments.. Department I and Department II.. Long question

A production cost report can help managers in identifying the most profitable products

Under a process costing system, inventory data for the balance sheet is provided by the ____________.

The manager of a large corporation used the production cost report to compare actual costs to budgeted costs. The manager then gave bonuses based on results. This is an example of using reports to _________.

Test 3

Which statement is false?

Which of the following statements is true of an activity-based costing system?

Which of the following decisions will most likely involve the use of activity-based management?

Activity-based costing can be used in determining the cost of services as well as products.

Under the just-in-time management system, ________.

Which of the following temporary accounts is typically used in just-in-time management systems to accumulate direct labor and manufacturing overhead costs?

Companies that use a just-in-time management system do not benefit from a quality management system.

Internal failure costs are costs incurred_______.

Which of the following costs changes in total in direct proportion to change in volume?

When the total variable costs are deducted rom the total mixed costs, we obtain_____.

A CVP graph shows how changes in the level of sales will affect profits.

________ is a "what if" technique that estimates profit or loss results if selling price, costs, volume, or underlying assumptions change.

When the virile cost per unit decreases, the contribution margin on each unit sold also decreases.

Sales mix, or product mix, is the combination of the products that a make up total sales.

Variable costing considers only _______ costs when determination product costs.

Which o the following is true of the traditional format of the income statement?

A variable costing income statement is used for ______.

When all the units produced are sold, the profit calculated under absorption costing is higher when compared to the profit calculated under variable costing.

Peter Newton, a production supervisor at BeThink Inc., uses variable costing for any cost control decision that he has to take. Which of the following is the reason for his choice?

In service companies, variable costing can be used for profitability analysis and contribution margin analysis.

Test 4

A budget is a financial plan used to coordinate a business's activities.

A _____ budget is a long-term financial plan used to coordinate activities needed to achieve the long-term goals of the company.

The starting point in the budgeting process is the preparation of the ______.

Which of the following describes the production budget?

An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as _______.

A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. The balance of Accounts Receivable can be obtained from ______.

The capital expenditures budget is prepared after the preparation of the cash budget.

Information technology has made it easier for managers to perform all of the following tasks except:

A flexible budget summarizes revenues and expenses for various levels of sales volume within a relevant range.

A standard is a price, cost, or quantity that is expected under normal conditions.

Which of the following is one of the reasons why companies use standard costs?

An unfavorable variance for an expense means more expense has been incurred than planned.

The management technique whereby managers concentrate on results that are outside the accepted parameters is called management by _______.

Which of the following is a disadvantage of decentralization?

In a ________, the manager is responsible for generating revenues and controlling costs.

Performance evaluation systems provide top management with a framework for maintaining control over the entire organization.

Which of the following four perspectives of the balanced scorecard enables the management to answer the question, "How can we continue to improve and create value?"

Which of the following statements is true of performance reporting?

The return on investment of a company is a measure of profitability and efficiency.

Which of the following statements most accurately describes residual income?