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Study Resources (Accounting)

106) The Fenmore Company uses standard costing for direct materials and direct labour. Management would like to use standard costing for variable and fixed overhead also. The following monthly cost functions were developed for manufacturing overhead items: OVERHEAD ITEMCOST FUNCTION Indirect materials$0.10 per DLH Indirect labour$0.40 per DLH Repairs and maintenance$0.20 per DLH Utilities$0.25 per DLH Insurance$ .
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73) A logical integration of management accounting tools to gather and report data and to evaluate performance. 74) A set of activities assigned to a manager or a group of managers or other employees. 75) The process of identifying what parts of the organization have primary responsibility for each objective, developing measures.
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92) The Cabinet Company provided the following information: CompanySteelWood as a wholeDivisionDivision Net sales$225,000$140,000$ 85,000 Fixed costs: Controllable by division managers40,00025,00015,000 Controllable by others25,00012,50012,500 Variable costs: Cost of merchandise sold95,00055,00040,000 Operating expenses20,00012,5007,500 Unallocated costs15,000 Required: Prepare a contribution approach income statement for the company as a whole and also for the divisions. 93) Wilson Corporation and Beattie Company are computer companies.  Comparative data for 20X1.
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11) The method of accounting that recognizes a transaction when it occurs is: A) financial accounting. B) cash accounting. C) cost accounting. D) accrual accounting. 12) Most businesses use: A) cash accounting. B) accrual accounting. C) cash and accrual accounting. D) profit accounting. 13) Which of the following is considered an asset? A) Accounts Payable B) Sales C) Accounts Receivable D) Common Stock 14).
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21) An increase in revenues would have which of the following effects on the accounting equation? A) Decrease Stockholders' Equity B) Increase Common Stock C) Increase Liabilities D) Increase Stockholders' Equity 22) Which of the following is a written promise to pay? A) Account receivable B) Account payable C) Note payable D) Dividend payable 23) A company has Liabilities of.
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55) Quality control is a concern of A) privately owned companies. B) nonprofit organizations. C) government organizations. D) privately owned companies, nonprofit and government organizations alike. 56) A report that displays the financial impact of quality is called a A) cycle time report. B) productivity report. C) financial report. D) quality cost report. 57) All of the following are categories.
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2.3   Questions 1) The general journal was developed to organize transactions by account. 2) The general journal is used to record the events (transactions) of a business. 3) The act of recording a transaction is called "journalizing." 4) Journalizing is the transfer of information from the general journal to the general ledger. 5) The posting.
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91) Define decentralization and identify its expected benefits and costs. 92) The Produce and Can Divisions are part of the same company.  Currently the Can Division buys a part from Produce for $24. The Produce Division wants to increase the price of the part it sells to Can by $6 to.
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36) If Division X is NOT at full capacity, the lowest price at which it  would be willing to sell to Division Y would be A) $50. B) $34. C) $16. D) $44. 37) The formal and informal performance-based rewards that enhance managerial effort toward organizational goals are referred to as A) feedback. B) evaluations. C) incentives. D) risks. The.
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26) Any action taken in conflict with organizational goals is called A) congruent behaviour. B) managerial effort. C) dysfunctional behaviour. D) negotiating. Good, Inc.'s records reveal the following: Division A Market price of finished component to outsiders $24 Variable costs per component     12 Contribution margin per component $ 12 Total contribution for 30,000 components $360,000 Division B Sales price of finished product $38 Variable costs: Division.
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56) Residual income is defined as A) net income less "imputed" interest. B) sales less expenses. C) income divided by revenue. D) being the same as ROI. The following information pertains to Jordan Company: Invested capital $1,000,000 Net income 200,000 Sales 2,000,000 Imputed interest rate 12 percent 57) The income percentage of revenue is A) 100 percent. B) 10 percent. C) 500 percent. D) 20 percent. 58) The capital.
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100) The Middleton Division of TTR Enterprises expects the following results for 2006: Revenues$500,000 Variable costs200,000 Contribution margin$300,000 Fixed expenses  180,000 Divisional income$120,000 Total divisional assets are $1,000,000. a. Calculate profit margin, asset turnover, and ROI for the division. b. Calculate residual income for the division using a minimum required return of 10%. 101) Raymer Incorporated has just formed.
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65) What is Conway's 20X3 productivity measure in terms of revenues per employee? A) $1,015.00 B) $700.00 C) $714.29 D) $870.00 66) What is Philips' 20X3 productivity measure in terms of revenues per employee? A) $892.31 B) $615.39 C) $790.91 D) $545.45 67) What is Philips' revenues per employee in terms of 20X3 dollars? A) $892.31 B) $615.39 C) $790.91 D) $545.45 Nagel Corporation and.
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2.2   Questions 1) Double-entry accounting requires that every business transaction impact at least two different accounts. 2) A T-account is a way to visualize the increases and decreases to the value of an account. 3) The debit (left) side of an account always indicates an increase in the value of the account. 4) The.
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11) GAAP is the acronym for generally accepted ________ principles. A) auditing B) accounting C) averaging D) associated 12) Accountants who ignore the effect of inflation on prices may be violating which accounting principle? A) Going concern B) Business entity C) Reliability D) Something other than what is listed 13) In the financial accounting records, most assets should be reported.
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41) Beginning Retained Earnings are $65,000; sales are $29,500; expenses are $33,000; and dividends paid are $3,500. How much is the amount in ending Retained Earnings? A) $58,000 B) $61,500 C) $68,500 D) $65,000 42) Beginning Retained Earnings are $31,000; sales are $46,800; expenses are $43,500; and dividends paid are $2,800. How much is the.
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31) Payables are classified as: A) Stockholders' Equity. B) Retained Earnings. C) Liabilities. D) Assets. 32) Items such as revenue, expenses and dividends are classified as: A) Common Stock. B) Retained Earnings. C) Liabilities. D) Assets. 33) The payment of cash dividends would have which of the following effects on the accounting equation? A) Increase Liabilities B) Decrease Stockholders' Equity C) Increase Assets D).
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79) The delegation of freedom to make decisions. 80) The decision-making power of segment managers. 81) The amount charged by one segment of an organization for a product or service that it supplies to another segment of the same organization. 82) Any action taken in conflict with organizational goals. 83) Those formal and informal.
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1.5   Questions 1) Cash accounting recognizes business transactions when they occur. 2) Cash accounting recognizes business transactions when cash is received or paid. 3) Accrual accounting recognizes business transactions when they occur. 4) Accrual accounting recognizes business transactions cash is received or paid. 5) The fundamental accounting equation is Assets plus Liabilities equals Stockholders' Equity. 6).
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1.4   Questions 1) Accounting is important because the process "keeps score" of the financial aspects of a business. 2) The main role of accounting is to compile reports to determine the profit made by a company over a period of time. 3) Generally Accepted Accounting Principles (GAAP) are the rules and guidelines governing.
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46) What is the Net income? A) $2,750,000 B) $1,250,000 C) $125,000 D) $400,000 47) What is the income percentage of revenue? A) 10.000 percent B) 3.125 percent C) 1.000 percent D) None of the above. The following information is available for the Peppercorn Company: Sales $1,000,000 Invested capital 625,000 ROI 10 percent 48) What is the capital turnover? A) 1.600 B) 0.100 C) 0.625 D) None of the above. 49) What.
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25) A set of activities assigned to a manager or a group of managers or other employees is called a(n) A) internal control system. B) management control system. C) responsibility centre. D) total quality control system. 26) An effective management control system gives each lower-level manager responsibility for a group of activities and objectives and.
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96) Inman Company has two fabric divisions, Cotton and Wool.  The following information is available:   Cotton     Wool   Revenue$100,000$500,000 Income15,000180,000 Invested capital50,000300,000 Cost of capital10 percent12 percent Compute the following for each division: a.ROI. b.income percentage of revenue. c.capital turnover. d.residual income. 97) The following data are available for the three divisions of Pomeroy Company:                           Division ADivision BDivision C Income(a)$90,000(i) Revenue(b)(e)$168,000 ROI15.
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102) Crickmore Industries has two divisions, the D division and the J division.  Information about a component that the D division produces is as follows: Revenue$100 per unit Variable manufacturing costs $25 per unit Fixed manufacturing overhead$15 per unit Expected sales in units7,000 units The D division can produce up to 8,000 components per year. .
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15) Explicit coordination of individuals' activities, actions and choices is the hallmark of the A) management control system. B) responsibility centre. C) internal control system. D) quality-control chart. 16) Which of the following is NOT a characteristic of a management control system? A) It aids and coordinates the process of making decisions. B) It encourages short-term profitability. C).
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98) The Hooper Company has gathered the following information: Revenue$  500,000 Expenses300,000 Total assets1,000,000 Total current liabilities200,000 Total liabilities400,000 Compute: a.ROI assuming invested capital is equal to total assets. b.ROI assuming invested capital is equal to total assets minus current liabilities. c.ROI assuming invested capital is equal to stockholders' equity. 99) The Duncan Company provided the following information: Cost of machine$600,000 Life.
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1) Account titles such as Marketing Expense and Depreciation Expense would be numbered starting with a 3. 2) A listing of all accounts in numerical order is called a chart of accounts. 3) An account numbered 321 would be considered a stockholders' equity account as it begins with a 3. 4) The stockholders'.
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1.6   Questions 1) Financial statements are historical reports of what has taken place financially in a business. 2) The Income Statement details how cash changed over an accounting period or cycle. 3) The Balance Sheet is dated as of a period of time. 4) The Statement of Retained Earnings is prepared to determine the.
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11) The first step in analyzing a transaction is to determine: A) if the account balance will increase or decrease. B) the accounts that are involved. C) the type of accounts that are involved. D) which accounts are to be debited and credited. 12) The second step in analyzing a transaction is to determine: A) if.
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1) A management control system is a logical integration of management accounting tools to gather and report data and to evaluate performance. 2) An investment centre's success is measured only by its income. 3) A responsibility centre for controlling revenues as well as costs is called a profit centre. 4) Goal congruence exists.
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11) Which of the following financial statements illustrates the accounting equation? A) Statement of Retained Earnings B) Income Statement C) Balance Sheet D) Statement of Cash Flows 12) Beginning Retained Earnings for the period would be shown on the: A) Statement of Retained Earnings. B) Income Statement. C) Balance Sheets. D) Statement of Cash Flows. 13) Of the financial statements,.
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16) Which of the following is NOT a benefit of decentralization? A) Lower-level managers have the best information concerning local conditions and therefore may be able to make better decisions than their superiors. B) Managers acquire decision-making ability and other management skills that help them move upward in the organization, assuring continuity.
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21) A T-account has a $922 credit balance. This account is most likely: A) Office Equipment. B) Rent Expense. C) Dividends. D) Sales Revenue. 22) A T-account has a $388 credit balance. This account is most likely: A) an expense. B) a dividend account. C) an asset. D) a stock account. 23) Debit means: A) decrease. B) increase. C) the right side.
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94) Mini Sales and Maxi Sales are two of the largest mail order companies in Canada.  Given below is selected information for these two companies for 20X2 and 20X3. Mini SalesMaxi Sales Customer orders20X24,600,0005,400,000 20X35,200,0006,800,000 Number of employees20X2500 600 20X3600700 Required: a.Compute the 20X2 and 20X3 productivity measures in terms of customer orders per employee for Mini Sales.
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87) Define a management control system and identify the issues involved with the design of a successful system. 88) Compare financial and nonfinancial performance, and explain why planning and control systems should consider both. 89) The following information is available for Hupp Corporation and its two divisions, Apple and Orange: CompanyAppleOrange as a whole.
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31) The ________ keeps a running balance of an individual account. A) general journal B) balance sheet C) general ledger D) posting reference 32) The ________ indicates where the information originated and to where the information was transferred. A) general journal B) balance sheet C) general ledger D) posting reference 33) One of the customers of Rodriguez Roofing, Inc. paid.
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90) The following information is available for Vegetable Company and its two divisions, Carrots and Celery: CompanyAppleOrange as a wholeDivisionDivision Net sales $250,000$175,000$ 75,000 Fixed costs: Controllable by division managers40,00025,00015,000 Controllable by others20,00015,0005,000 Variable costs: Cost of merchandise sold115,00070,00045,000 Operating expenses35,00020,00015,000 Unallocated costs10,000 Required: a.Compute the contribution margin for the Carrots Division. b.Compute the contribution controllable by the manager of the Celery Division. c.Compute the contribution by.
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1.3   Questions 1) All businesses are operated to generate a profit. 2) A business may be either a for-profit business or a not-for-profit business. 3) A business with one owner is called a sole proprietorship and it must be a service business. 4) Wal-Mart and Target would be examples of corporate merchandising businesses. 5) Law.
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1.1   Questions 1) By taking accounting classes, the student is learning the "language of business." 2) To manage a business effectively, an owner or manager would benefit greatly from having some knowledge of accounting. 3) Businesses primarily exist to generate sales. 4) The value of an item does NOT depend on when it is.
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1) Decentralization is the delegation of freedom to make decisions. 2) Decentralization is most successful when an organization's segments are relatively independent of one another. 3) Profit centres can exist only in a decentralized organization. 4) In designing accounting control systems, top managers must consider the system's impact on behaviour desired by the.
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11) All payables are listed as: A) assets. B) liabilities. C) stockholders' equity. D) revenue. 12) Accounts that start with the numbers 6-9 would probably be: A) other revenues and expenses. B) other assets and liabilities. C) other stockholders' equity. D) other assets and revenues. 13) A type of company asset in which a customer owes the company money would.
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11) Dividends, Accounts Receivable, and Buildings have normal balances of: A) credit, debit, and debit, respectively. B) debit, debit, and credit, respectively. C) credit, credit, and credit, respectively. D) debit, debit, and debit, respectively. 12) Revenues, Accounts Receivable, and Common Stock have normal balances of: A) credit, debit, and credit, respectively. B) debit, debit, and credit, respectively. C).
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11) Which of the following is a disadvantage of the corporate form of business? A) Ease of raising capital B) Double taxation C) Limited resources D) Limited liability 12) Which of the following is an advantage of a sole proprietorship? A) Ease of formation B) Limited liability of owner C) Ease of raising capital D) Unlimited life 13) Which type.
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66) The joint formulation by a manager and his or her superior of a set of goals and plans for achieving the goals for a forthcoming period is known as A) capital budgeting. B) managerial effort. C) management by opinion. D) management by objectives. The following information pertains to Wolfe Company Total assets $200,000 Total current liabilities 40,000 Total expenses 240,000 Total.
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35) The drive for some selected goal that creates effort and action toward that goal is called A) motivation. B) goal congruence. C) managerial effort. D) apathy. 36) Who is responsible for developing, maintaining and evaluating internal control systems? A) Managers B) Stockholders C) Accountants D) Both managers and accountants 37) An internal control system consists of all of the.
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45) The contribution margin A) is especially helpful for predicting the impact on income of short-run changes in activity volume. B) is defined as sales revenues less all fixed costs. C) cannot be used with segments. D) cannot be calculated for investment centres. 46) A responsibility centre for which a separate measure of revenues and/or.
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