question

If a company abandons a segment of its operation, the loss would be reported on the:

answer

income statement immediately after income from continuing operations

question

A company that is leveraged is one that:

answer

contains debt financing

question

_____ is the use of debt to finance a company or increase the return on an investment:

answer

leverage

question

The number of times interest charges are earned is computed as:

answer

[(income, before income tax) + (interest expense)] / (interest expense)

question

The formula used to calculate inventory turnover is:

answer

(cost of goods sold) / (average inventory)

question

Which of the following clarifies information presented in the financial statements, as well as expands upon it where additional detail is needed? (a) Report on fairness of financial statement (b) Management discussion and analysis section (c) President's state of the company report (d) Report on adequacy of internal control

answer

Management discussion and analysis section

question

Where is a gain or loss from discontinued operations reported in the financial statements:

answer

immediately following income from continuing operations on the income statement

question

A change from straight-line depreciation to double-declining balance depreciation would be reported as:

answer

a prospective change in estimate

question

An analysis in which all the components of a balance sheet are expressed as a percentage of total assets is called ______ analysis

answer

vertical analysis

question

Corporate annual reports typically do NOT contain which of the following: (a) Auditor's report (b) Next year's budget (c) Management discussion and analysis (d) Accompanying footnotes

answer

next year's budget

question

Management's analysis of the results of operations and its opinion about future performance are found in the:

answer

management discussion and analysis section

question

In a common size income statement, which of the following is given a percentage of 100 percent?

answer

net sales

question

Unusual items affecting prior period statements include:

answer

changes from one generally accepted accounting principle to another

question

In the annual report, where would a financial-statement reader find out if the company's financial statements give a fair depiction of its financial position and operating results?

answer

the report of independent registered accounting firm

question

An annual report includes all of the following except:

answer

resumes of all key executives

question

Loss from discontinued operations is reported on the:

answer

income statement after income from continuing operations

question

In horizontal analysis, each item is expressed as a percentage of the:

answer

base year figure

question

All of the following would be defined as extraordinary items except:

answer

a gain in a company's capital stock due to a bankrupt competitor

question

The managerial process that monitors operations and compares actual results to expected results is the __________ phase:

answer

controlling

question

Which of the following positions would have salaries or wages that are classified as a direct labor cost by a baking company:

answer

baker

question

Which of the following positions would have salaries or wages that are classified as a factory overhead cost by a baking company:

answer

factory supervisor

question

Managerial decisions will include all except one of the following: (a) Purchase of capital equipment. (b) Setting of capital stock prices. (c) Product costs. (d) Selling price.

answer

setting of capital stock prices

question

A company will use managerial reports to: (a) Determine product selling prices. (b) All of these choices are correct. (c) Reduce direct labor costs. (d) Determine spoilage.

answer

all of these choices are correct

question

Managerial accounting information can be used for: (a) Determining the effect of changes in product costs. (b) All of these choices are correct. (c) Determining the selling price. (d) Evaluating product costs.

answer

all of these choices are correct

question

Which of the following is the correct formula for determining cost of goods manufactured?

answer

(beginning work in process) + (total manufacturing costs) - (ending work in process inventory)

question

Managerial accounting information uses:

answer

historical and estimated data

question

Which of the following is one of the five phases in the management process?

answer

decision making

question

Which of the following would not be considered a conversion cost by a baking company? (a) Baker. (b) Depreciation on oven. (c) Electric costs. (d) Flour.

answer

flour

question

Monitoring the operating results of implemented plans and comparing the actual results with expected results is:

answer

controlling

question

Inherent in planning, directing, controlling, and improving is:

answer

decision making

question

Long-range courses of action is:

answer

planning

question

Isolating significant departures from plans for further investigation and possible remedial action. It may lead to a revision of future plans is:

answer

controlling

question

Process by which managers, given their assigned levels of responsibilities, run day-to-day operations is:

answer

directing

question

Rejects solving individual problems with temporary solutions that fail to address the root cause of the problem is:

answer

improving

question

Office supplies used at the company headquarters is an exampled of _______ costs:

answer

period

question

Which of the following would probably not be determined using managerial accounting reports:

answer

earnings per share

question

Management develops the company's objectives (goals) in the __________ phase:

answer

planning

question

Which of the following is not one of the five phases in the management process:

answer

analyzing

question

Which of the following accounts will never be included in the inventory accounts on the balance sheet for a baking company:

answer

president's salary

question

Managerial reports will include all of the following except:

answer

income tax expense

question

A balance sheet for a manufacturing company includes all of the following inventories except:

answer

direct labor

question

Which of the following will be classified as an indirect cost by a baking company:

answer

salaries of production supervisors

question

Which of the following would be classified as a factory overhead cost by a baking company:

answer

depreciation of factory equipment

question

A company will use managerial reports to: (a) Determine actual product costs. (b) Consider computerized manufacturing processes. (c) Estimate product costs. (d) All of these choices are correct.

answer

all of these choices are correct

question

The following are considered manufacturing costs except:

answer

selling and administrative expenses

question

Financial accountants provide information to: (a) The creditors. (b) The general public. (c) The stockholders. (d) All of these choices are correct.

answer

all of these choices are correct

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