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Study Resources (Accounting)

11) Carpenter Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1) cost tracing to the finished furniture, (2) cost allocation of an indirect manufacturing cost to.
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27.              State whether each of the following statements is true or false. Explain the true statements and discuss why the false statements are false. a.              A debit always results in increasing the balance in an account. b.              As expenses increase, the equity of an entity will decrease. c.              Posting is the process of.
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  Problems 23.              Tina opens a business to do small printing jobs. Her first few transactions are shown below. For each of them, state which two of the following six possibilities occurred as a result of each transaction - an asset increased, an asset decreased, a liability increased, a liability decreased, equity.
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9) Jim's Manufacturing currently produces 1,250 brakes per month. The following per unit data apply for sales to regular customers: Direct materials$225 Direct manufacturing labor28 Variable manufacturing overhead50 Fixed manufacturing overhead35 Total manufacturing costs$338 The plant has capacity for 2,000 brakes. Required: a.What is the total cost of producing 1,000 brakes? b.What is the total cost of producing 1,500.
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46.              (Preparing a not-for-profit hospital operating statement) Whitt Valley Hospital is a not-for-profit initial care facility.  Prepare a Statement of Operations for Whitt Hospital using the following information for its calendar year ending December 31, 2012:   Third-parties and direct-pay patients were billed $6,500,000 at the hospital's established billing rates   The hospital.
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Learning Objective 1-2 1) Strategic cost management describes cost management that: A) is not consistent with organizational goals. B) does not relate to ethical practices. C) has no focus on the organization. D) specifically focuses on strategic issues. E) does not specifically focus on strategic issues. 2) Which of the following is not one of the six.
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33.              (Transaction analysis, journal entries, and adjusting journal entries) Lillian Rose opened a facility to provide day care for children. The following transactions occurred during the month of July 2013, the first month of business. a.              Lillian Rose invested $10,000 of her personal funds in a business, to be known as LilyRose.
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Learning Objective 2-2 1) The general term used to identify the tracing and allocation of accumulated costs to a cost object is: A) cost accumulation. B) cost assignment. C) cost tracing. D) conversion costing. E) convertible costing. 2) Cost tracing: A) describes the assignment of direct costs to a particular cost object. B) is the cost incurred which is.
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12) Indirect costs such as rent, telephone, and depreciation are always costs of the period in which they are incurred and are not associated with inventories. 13) Under GAAP, only manufacturing costs can be assigned to inventories in the financial statements. 14) The two terms that managers use to describe cost classifications.
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10) Evans Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plant in Virginia. They include: Cost Object #1: The real estate dwelling(s) (physical buildings and equipment) Cost Object #2: The use of buildings and equipment Cost Object #3: The use and availability of manufacturing labor The following manufacturing.
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Learning Objective 1-7 1) Which of the following is not an ethical behavior of Practitioner's of Management Accounting and Financial Managers? A) Maintains an appropriate level of professional expertise by continually developing knowledge and skills. B) Performs professional duties in accordance with relevant laws, regulations, and technical standards. C) Provides decision support information and.
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35.              (Transaction analysis, journal entries, and adjusting journal entries) Ricardo Sanchez repairs automobiles. He started calendar year 2013 year with the following account balances: Cash - $5,000; Accounts receivable - $30,000; Allowance for uncollectible accounts - $3,000; Repair parts inventory - $23,000; Equipment - $60,000; Accumulated depreciation - $25,000; Accounts payable.
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25.              Elsie owns a small business. At the end of the month, Elsie needed to make adjusting entries to prepare statements on the accrual basis. Which two of the following six possibilities occurred as a result of each of the following adjustments - an asset increased, an asset decreased, a.
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Learning Objective 2-7 1) Which of the following is not a prominent labor component of overhead? A) Direct programming labor that cannot be traced to individual products. B) Indirect labor compensation for office staff. C) Indirect compensation for idle time. D) Indirect labor compensation for rework labor. E) Indirect labor compensation for office security. 2) The wage.
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Learning Objective 1-3 1) Which of the following is not a way for a company to improve customer response time? A) An increase in capacity of bottleneck operations. B) Decrease in response time to consumer requests. C) Faster delivery procedures. D) Produce the product quicker. E) Effective management accounting information. 2) Trader Joe's is known for delivering.
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Learning Objective 2-4 1) Which of the following is not true about unit costs? A) Decision makers think in terms of total costs rather than unit costs. B) Decision makers think in terms of unit costs rather than total costs. C) Calculating unit cost is essential. D) Unit costs are also known as average costs. E).
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Learning Objective 1-6 1) Line management: A) is also known as staff management. B) is directly responsible for achieving the goals of the organization. C) is never responsible for achieving the goals of the organization. D) is not responsible for achieving the financial goals of the organization because that is the job of the CFO. E).
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11.              Suzy Queue hires a salesperson for her business. Suzy agrees to pay the salesperson a commission of 10 percent of sales. By the end of the first month, the salesperson has done $50,000 of sales. Suzy wants to prepare accurate financial statements at the end of the month, but.
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Learning Objective 1-1 1) Managers use management accounting information to do all of the following except: A) collect. B) analyze. C) perform. D) categorize. E) summarize. 2) Managers make cost management decisions to increase the value of products and services they provide to customers and to achieve organizational goals. Which of the following is not an.
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  Problems 26.              (Assessment of a hospital's accounts receivable collection efficiency) Assess Plains Regional Hospital's accounts receivable collection efficiency based on the following set of facts: a.              Days' revenue in patient accounts receivable at December 31, 2012, for Plains Regional Hospital - 76 days b.              Extracts from Plains Regional Hospital's calendar year 2013 financial statements: Net.
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29.              (Analyzing and assessing the implications of a government's account balances) Following is a pre-closing trial balance of a village's General Fund at December 31, 2013. The amount shown as Fund balance (unassigned) has not changed since the year started. The amount shown as appropriations includes the amounts appropriated for transfers. .
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11.              What can a financial analyst learn from a hospital's number of days' revenue in receivables? a.              the hospital's accounts receivable collection efficiency b.              the average length of stay of patients in the hospital c.              the average daily occupancy rate of the hospital's beds d.              the proportion of hospital beds occupied by patients covered.
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34.              (Preparation of financial statements) (This problem is based on the transactions for problem 33.) Following is a trial balance for LilyRose Day Care, as of July 31, 2013, the end of its first month of business. Based on the trial balance, prepare an income statement for the month ended July 31,.
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Learning Objective 2-5 1) Which of the following is not a characteristic of the type of inventory used in manufacturing-type sector companies? A) Direct materials inventory. B) Work-in process inventory. C) Finished goods inventory. D) Materials in stock and waiting to use. E) Products already manufactured and sold. 2) Which of the following is not a commonly.
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Multiple Choice 1.              Which of the following formulations of the accounting equation is incorrect? a.              assets - liabilities = equity b.              assets = liabilities + equity c.              assets = liabilities + opening equity + (revenues - expenses) + (owner additions to – withdrawals from equity) d.              assets = liabilities - equity 2.              John pays cash to.
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Learning Objective 1-4 1) Which of the following is not true about a managerial accountant that links rewards to performance? A) Not used to motivate managers. B) Allows companies to charge premium prices. C) Should only be based on financial information. D) Recognizes managers for a well-done job. E) Rewards managers by salary, bonuses, and performance. 2).
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36. (Preparation of financial statements) (This problem is based on the transactions for problem 35.) Following is a trial balance for Ricardo Sanchez's Auto Repair as of January 31, 2013. Prepare an (1) income statement and a (2) statement of changes in owner's equity for the month ended January 31, 2013, and.
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Learning Objective 1-5 1) Which of the following is not a true statement about a manager that utilizes the cost-benefit approach? A) Senior managers could spend resources if the expected benefits to the company exceed the expected costs. B) Senior managers can compare the expected benefits to the expected costs associated with a.
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11) The ________ ________ is an administration function that includes the human resource management function of training front-line workers. A) design function B) distribution function C) production function D) marketing function E) customer service function 12) The ________ function is the function of analyzing, reporting, and accounting for those resources spent in different marketing channels; while.
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29.              Prepare journal entries to record the following transactions regarding a fire insurance policy purchased by Chang Electronics. Chang's business operates on a calendar-year basis. a.              April 1, 2013 - Chang arranges to buy fire insurance. He receives a bill for $10,000 for an insurance policy that covers the period April.
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Learning Objective 2-1 1) The cost incurred is: A) actual costs. B) budgeted costs. C) cost object. D) cost accumulation. E) cost allocation. 2) A ________ is usually measured as the amount of money that must be paid to acquire goods and services. A) time B) cost C) goal D) product E) prediction 3) Which of the following explains why managers compare the.
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Learning Objective 2-3 1) The costing systems that managers use to identify the cost of each activity such as testing, design, or set-up are called: A) product-based costing systems. B) action-based costing systems. C) managerial-based costing systems. D) activity-based costing systems. E) resource-based costing systems. 2) Financial accountants realize that a mixed cost is: A) a fixed cost. B).
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43.(Accounting for donations and donor-restricted and board-designated resources) A not-for-profit hospital uses the following funds to account internally for its resources: General Fund (GF); Specific Purpose Funds (SPF); Plant Replacement and Expansion Funds (PREF); and Endowment Funds (EF). The hospital is establishing a special trauma unit for brain-related injuries, and is.
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9) The comparison of ________ performance to ________ performance, this is known as the control or postdecision role of information. A) low; high B) actual; budgeted C) real; superficial D) known; unknown E) new; existing 10) ________ can lead to changes in goals, strategies, and the ways decision alternatives are identified, and the range of information.
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13) What are the four standards of ethical conduct for management accountants. List each standard and provide an example that demonstrates compliance with that standard. 14) What should a managerial accountant do when faced with ethical issues that arise in their organizations? 15) You have been employed as an entry-level management accountant.
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Multiple Choice 1.              What is the major purpose of the statement of net position from a financial analysis perspective? a.              to describe the major sources of revenue and types of expense b.              to show the inflows and outflows of cash during the reporting period c.              to show whether the entity was efficient and effective.
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44.              (Use of funds) Andy Kelly Hospital uses the following types of funds for internal purposes: General Fund; Specific Purpose Funds; Plant Replacement and Expansion Fund; and Endowment Fund. State which fund (or funds) would be used to account for each of these transactions or events. a.              Ms. Shaw makes a gift.
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28.(Financial statement analysis of a governmental enterprise hospital) Following is a trial balance (with 000 omitted for simplification) showing the accounts of Beta Hospital at December 31, 2013. Using the information from the trial balance, analyze Beta's financial statements by answering the following questions. Show all calculations. a.              What is the current.
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31.              In August, 2013, a publisher receives a check for $120 from a subscriber for a one-year subscription to "Willie," a monthly magazine. The subscriber will receive the first magazine in September. Prepare: (a) the journal entry to record the amount received in August; and (b) the adjusting entry to.
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30.              (Analyzing a governmental entity's financial statements) The following data comes from the 2013 financial statements of the Village of Matthews. Although presented in summarized format, the balance sheet debits and credits are equal and the operating statement information is complete. General Fund - Balance Sheet Elements Cash$1,200,000 Short-term investments405,000 Property taxes receivable - delinquent282,000 Due.
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8) Complete a performance report for the month of October, 2012, for the Management Scientist Quarterly, a national publication, showing four columns: 1) Actual Result; 2) Budgeted Amount; 3) Difference: Actual Result minus Budgeted Amount; 4) Difference as a Percentage of Budgeted Amount. Compute the difference of the actual result.
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