Accounting Expert Answers & Study Resources

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 13) An annuity is best described as which of the following statements? A) A stream of equal installments made at equal time intervals B) A stream of interest payments on a principal amount invested C) Another term used for.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 16) Which of the following is not part of the operating budget? A) Cash budget B) Direct materials budget C) Sales budget D) Budgeted income statement 19) Pet Food Plus Company expects to sell 3,000 beefy dog treats in January and.

54) Arbor Inc. has gathered the following information about its purchase and use of raw materials for December:   Standard Price (SP) per pound of raw material $15.00 Actual purchase price per pound of raw material $7.00 Standard Quantity Allowed (SQA for actual production (pounds) 1,500 Actual Quantity (AQ) of raw materials purchased (pounds) 1,750   Arbor Inc. uses a standard cost.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 14) Which of the following is considered a strong current ratio? A) 2.1 B) 0.8 C) -1.0 D) 0.3 34) All of the following measure a company's ability to pay current liabilities except A) Acid-Test Ratio. B) Accounts Receivable Turnover. C) Current Ratio. D) Working.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 5) The fixed overhead budget variance is also known as the fixed overhead spending variance. 6) Variances are never calculated for fixed overhead because fixed overhead never changes even between budgeted numbers and actual. MULTIPLE CHOICE. Choose the.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 12) How is the variable overhead efficiency variance calculated? A) The difference between the standard hours allowed and the actual hours used multiplied by the actual overhead rate B) The difference between the actual overhead rate and the.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) The IFS function differs from the IF function by allowing only one true/false outcome. 2) The IFS function differs from the IF function by allowing more than one logic outcome. 3) The IFS function is found under.

56) Cove Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $340,000. Projected net cash inflows from the equipment are as follows:   Year 1 $110,000 Year 2 $60,000 Year 3 $90,000 Year 4 $70,000 Year 5 $82,000 Year 6 $98,000   Cove Corporation's hurdle rate is 10%. Assume the residual value is.

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 10) The standard cost of direct materials per unit is calculated by A) dividing the standard quantity of direct materials by the standard price of direct materials. B) multiplying the actual quantity of direct materials by.

  MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) Riverside Corporation collects 35% of a month's sales in the month of sale, 45% in the month following sale, and 20% in the second month following sale. Budgeted sales for the upcoming four months are:   April.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 4) A debit balance means that a variance is unfavorable since it decreases income (just like an expense). 6) A debit balance means that a variance is favorable since it decreases income (just like an expense). 10) Closing.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 15) The profitability index is also known as the present value index. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 25) The net present value with equal annual net cash inflows.

51) Bookworks Publishing reported the following results for its Textbook Division:   Sales $2,200,000 Operating income $440,000 Total assets $1,100,000 Current liabilities $970,000   Bookworks' target rate of return is 22% and the weighted average cost of capital is 8%. Its effective tax rate is 25%. What is the Textbook Division's Return on Investment (ROI)? A) 40.00% B) 20.00% C) 44.09% D) 200.00% 52) Bookworks Publishing reported.

  MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 7) Which of the following is not a question that management needs to consider when deciding to process a product further or sell as is? A) How much extra will it cost to process the product further? B).

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 9) Which of the following is an advantage of using standard costs and variances? A) Price and efficiency variances motivate front-line employees more than operational performance measures. B) Maintaining updated standards is inexpensive. C) Standard costs are benchmarks.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) The data provided by the horizontal or vertical analysis of the financial statements can be used in benchmarking. 2) A common size statement reports only percentages. 3) A common size statement reports only dollar values. 4) The common.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 24) Desired ending inventory is 20% of next month's sales. If cost of goods sold is $300,000 and next month's sales are $900,000, which of the following statements is true regarding purchases? A) Purchases cannot be predicted.

ESSAY. Write your answer in the space provided or on a separate sheet of paper. 53) On the line in front of each variance, enter the letters of the items needed to compute that variance. You will enter more than one item on each line. A. Actual labor rate B. Actual labor hours C..

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) The ABS function in Excel will return a sum of whatever cells referenced. 2) The ABS function in Excel will return an absolute value of the referenced cell or formula. 3) When calculating variances in Excel, the.

41) Rocky Pines golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $50 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $25,000,000 for the golfing season. About.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 18) A company that has a constraint and produces multiple products should emphasize the production of the product that has the A) most unit sales out of all the products. B) highest contribution margin per unit..

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 11) The three sections of the Statement of Cash Flows are operating activities, investing activities, and financing activities. 12) The three sections of the Statement of Cash Flows are operating activities, investing activities, and capital activities. MULTIPLE CHOICE..

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 13) The only difference in a statement of cash flows prepared under the direct method as opposed to the indirect method is the presentation of operating activities. 14) The only difference in a statement of cash flows.

71) The Johnson Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year.     End of current year End of prior year Net sales revenue (all credit) $805,000   Cost of goods sold $509,000   Gross profit $296,000   Selling/general expenses $183,600   Interest expense $33,000   Net income $79,400   Current assets $ 71,000 $20,000 Long-term assets $329,000 $280,000 Total assets $400,000 $300,000 Current liabilities $ 56,000 $16,000 Long-term.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Sparklines are mini-graphs contained in one cell of Excel. 2) A drawback of sparklines is that they take up a large amount of room on the Excel spreadsheet. 3) Line charts are commonly used to visualize time.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 8) Sales revenue is used as the base for vertical analysis percentages on the income statement. 9) The formula used in vertical analysis of the balance sheet is: (each balance sheet line item/total liabilities) = vertical %. 10).

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 11) Companies should always outsource if the cost of purchasing is less than the total cost of producing the unit under absorption costing. 12) When companies consider outsourcing a product, fixed costs are always irrelevant.  MULTIPLE.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 27) Which of the following items represent physical information in an environmental management accounting system? A) Total electricity used B) Cost of shipping containers to customers C) Cost of electricity used to run plant D) Cost of materials used in.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 9) The "triple bottom line" reports on three factors: profits, people, and planet. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 24) Which of the following is not considered as of.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 15) A product line should be discontinued if the contribution margin lost is A) less than the variable costs saved. B) less than the fixed costs saved. C) more than the variable costs saved. D) more than the fixed costs.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 8) When using the indirect method in the statement of cash flows, the company would subtract the net change in a current asset account if the balance increased over time. 9) When using the indirect method in.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 9) A major criticism of the payback method is that it focuses only on time, not on profitability. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) Juniper Corporation is considering.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Currently, the SEC does not require publicly held corporations to disclose the costs related to remediation of contaminated sites. 2) Sustainability reporting helps companies set goals, measure performance, and manage change as they move towards a.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 28) Companies that are considered price-setters usually employ the _________________ approach to pricing products. A) cost-plus pricing B) percentage pricing C) cost plus one D) target costing 29) Companies that are considered price-takers usually employ the _________________ approach to pricing products. A).

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 20% and the weighted average cost of capital is 25%. Its.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) VLOOKUP in Excel is a handy tool to help managers calculate total costs of a column. 2) VLOOKUP can help managers look up information they don’t know based on some information that they do know. 3) "False".

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 23) Sunny Corporation has collected the following data for one of its products:   Direct materials standard (3 pounds per unit @ $0.48/lb.) $1.44 per finished good Direct materials flexible budget variance-unfavorable $9,000 Actual Direct Materials Used (AQU) 34,000 pounds Actual finished goods produced 22,000.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 9) Companies may only use one capital budgeting method because they are all very costly to perform. 10) Companies often use more than one capital budgeting method to determine which capital investment to make. MULTIPLE CHOICE. Choose the.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 8) The master budget variance is the difference between actual results and the static budget. 9) The volume variance is the difference between actual results and the flexible budget. 10) The flexible budget variance is the difference between.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) The slope of the trendline indicates the fixed portion of the trendline. 2) The intercept of the trendline indicates the fixed portion of the trendline. 3) The variable portion of the trendline is indicated by the slope.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 16) Pip Corporation uses horizontal analysis to compare its income statement from year to year. Pip Corporation reported the following data last year as well as the percent change when compared to the current year:   Total Last.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 10) All four of the methods for analyzing capital investments use accrual basis accounting. 11) Accounting Rate of Return is the only method used for analyzing capital investments that uses accrual basis accounting. 12) Accounting Rate of Return.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Column charts in Excel allow a person to better visualize the trends in data than viewing the data in Excel spreadsheet format alone. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 36) What is the starting point of the master budget process? A) Sales budget B) Production budget C) Budgeted income statement D) Cash budget 37) Which of the following is not a benefit of budgeting? A) Budgeting forces managers to work in.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) A slicer is a visual filtering tool that shows how the data in the pivot table is filtered. 2) A slicer provided less data than the filter feature and therefore saves screen space. 3) When using the.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 9) A favorable variance causes operating income to be higher than budgeted. 10) An unfavorable variance causes operating income to be higher than budgeted. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.   19) Roster Corporation produces clocks. According to company standards, it should take 2 hours of direct labor to produce a clock. The company's standard labor cost is $14 per hour. During June, the company produced 6200.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) One of the reasons Internal Rate of Return wasn’t used as often as Net Present Value is because it wasn’t easy to calculate. 2) Internal Rate of Return is still time consuming to calculate even using.

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) Large, diversified companies often will sell products/components from one division to another division rather than purchase from an outside supplier. 2) Transfer cost is the term used to describe the amount one division pays to another.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 9) In a special sales order decision, incremental fixed costs that will be incurred if the special order is accepted are considered to be A) relevant to the decision. B) sunk costs. C) opportunity costs. D) irrelevant to.