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Study Resources (Accounting)

1) The Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial reporting functions. 2) The Sarbanes-Oxley Act has significantly impacted the responsibility for financial reporting by publicly traded corporations. 3) CA firms cannot provide consulting services for their current audit clients. 4) Trends in the modern business environment include.
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Learning Objective 12.4 Questions 1) Xemen Company has the following data: 2X13                            2X12         2X11 Sales $ 930 $700 Less: Cost of Goods Sold 410 235 Gross Profit 520 465 Less: Operating Expenses 284 255 Operating Income 236 210 Less: Other Revenue/Other Expense: Interest Revenue 24 24 Interest Expense (30) (30) Income before Tax 230 204 Less: Income Tax Expense 92 82 Net Income.
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11) Short-term liquidity refers to an organization's ability to generate enough cash to repay long-term debts as they mature. 12) Long-term solvency refers to an organization's ability to meet current payments as they become due. 13) Annual reports and 10K filings for the Securities and Exchange Commission are timely, since they usually.
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Learning Objective 12.3 Questions 1) How is working capital calculated? A) (total current assets) minus (total current liabilities) B) (total current assets) minus (inventories and prepaid assets) C) (total current assets) divided by (total current liabilities) D) (total current assets) E) (total current liabilities) 2X13 2X12 Sales               $999               $800 Cost of Goods Sold               $399               $336 Gross.
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7) Fruit King Company purchased 100% of the outstanding common shares of Berries, Inc., for $23,750 on January 1, 2X13. Berries Inc.'s balance sheet just before the acquisition was as follows: Cash $ 4,500 Net fixed assets 12,000 Total Assets $16,500 Liabilities $11,000 Stockholders' equity 5,500 Total Liabilities & Stockholders' Equity $16,500 The fair market value of Berries.
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1) Controlling means overseeing the company's day-to-day operations. 2) Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to each decision that is made. 3) Evaluating the results of business operations against a plan and then making adjustments to that plan is called budgeting. 4) The four primary responsibilities of.
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33) The following financial statements are available for Jerry Company: Comparative Income Statements For the Years Ending December 31, 2X13 and 2X12 2X13 2X12 Sales(all credit) $750 $690 Cost of Goods Sold 440 400 Gross Profit $310 $290 Less: Operating Expenses 220 205 Operating Income $ 90 $ 85 Less: Income Tax Expense 40 37 Net Income $ 50 $.
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Learning Objective 11.6 Questions 1) ________ represent the rights of nonmajority shareholders in the assets and earnings of a company that is consolidated into the accounts of its majority shareholder. A) Parent interests B) Noncontrolling interests C) Subsidiary interests D) Consolidated interests E) Intercompany interests 2) Presented below are the balance sheets of Blanco, Inc. and Stalle.
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Learning Objective 11.7 Questions 1) Presented below are the balance sheets of Dental Works and Forgash Company at January 1, 2X13: Dental Works Forgash Company Balance Sheet Balance Sheet January 1, 2X13 January 1, 2X13 Cash $ 23 Cash $110 Net Fixed Assets 127 Net Fixed Assets 290 Total Assets $150 Total Assets $400 Accounts Payable $ 15.
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23) Indicate which of the four primary responsibilities of managers is described by each of the following statements: a. Determining how to achieve company goals and objectives. b. Making adjustments to keep the company pressing towards its goals. c. The process in which management engages while it plans directs and controls operations. d. Management.
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21) Which of the following statements is FALSE? A) Financial accounting provides sufficient information for managers to effectively plan and control operations. B) Financial accounting reports help creditors make decisions. C) Financial accounting helps investors make decisions. D) Financial accounting provides external reports. 22) Which of the following is TRUE? A) Managerial accounting reports are audited.
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11) Which of the following statements is TRUE about managerial accounting information? A) It is prepared annually and quarterly. B) It is audited by CPAs. C) It emphasizes relevance. D) It must be prepared in conformity with generally accepted accounting principles (GAAP). 12) Management accounting focuses on: A) external reporting. B) internal reporting. C) tax preparation. D) auditing. 13) The.
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11) XBRL will be required of both public and private companies. 12) Managerial accounting has its roots in the industrial age of manufacturing. 13) Lean production is both a philosophy and a business strategy of manufacturing without waste. 14) To resolve ethical dilemmas, management accountants should first : A) consult an attorney regarding legal.
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11) Montreal Electronics has the following data available: 2013                                2012 Net Income $ 90 $ 80 Earnings Per Share $ .45 $ .40 Annual Common Dividends Per Share $ .40 $ .20 Closing Market Price Common Stock, 12/31 $9.00 $6.00 What is the dividend-payout for Montreal Electronics in 2013? Has the dividend-payout increased or decreased since.
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11) Manchester Technology has the following data available: Inventory, December 31, 2013 $120 Inventory, December 31, 2012 $200 What is the percentage increase or (decrease) in inventory from 2012 to 2013 for Manchester Technology? A) (120.0)% B) 120.0% C) 40.0% D) 62.5% E) (40.0)% 12) What issue would be of most concern on behalf of banks or other creditors.
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1) The design of a management accounting system should consider how reports affect employees' behavior. 2) GAAP must be followed when managerial accounting reports are prepared. 3) Management accounting requires independent audits of the firm's books. 4) The primary purpose of managerial accounting information is to help external users make investing and lending.
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21) Cider Company has the following data: 2X13                               2X12      2X11 Current Liabilities: Accounts Payable $ 50 $ 30 $ 20 Wages Payable 20 10 5 Taxes Payable 10 5 15 Current Long-Term Debt 10 15 5 Total Current Liabilities $ 90 $ 60 $ 45 Long-Term Liabilities: Long-Term Debt 35 45 40 Total Liabilities $125 $105 $ 85 Stockholders' Equity: Common Stock.
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20) Elltol Company Ingrad Company Balance Sheet Balance Sheet January 1, 2X13 January 1, 2X13 Cash $ 40 Cash $120 Net Fixed Assets 90 Net Fixed Assets 130 Total Assets $130 Total Assets $250 Accounts Payable $ 20 Accounts Payable $ 30 Long-term Bonds Payable 60 Long-term Bonds Payable 100 Stockholders' Equity 50 Stockholders' Equity 120 Total Liab. &.
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1) The SMA is the professional association for managerial accountants. 2) The CMA designation is issued by the Society of Management Accountants of Canada. 3) Your company sends you to a conference to update your skills. You decide to skip the afternoon session and go sightseeing. This violates the professional competency and.
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54) Match the appropriate terms with the correct definitions.    Definition    Term 1.  _____ Exchange of information with suppliers to reduce costs, improve quality, and speed delivery of goods and services from suppliers to the company itself and on to customers. a. SOX 2.  _____ A philosophy and business strategy of manufacturing without.
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37) Based on the information for the following three companies, a) compute the number of days' sales in receivables for 2X13 for each company assuming 365 days in a year and b) analyze each company in accordance with a 45-day credit policy. Hadman Teltor Comdok Net credit sales 2X13 $122,000 $98,000 $178,000 2X12.
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11) Which of the following management responsibilities are being fulfilled when management uses feedback to take corrective action on the budgets? A) Directing and planning B) Planning and decision-making C) Controlling and decision-making D) Planning and controlling 12) Which of the following management responsibilities is being fulfilled when management decides to move production to another.
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31) Describe the position of the CFO, the treasurer, and the controller within the organization. Describe the main functions of the treasurer and the controller. 32) Which of the following skills are required of managerial accountants? A) Solid knowledge of financial accounting B) Problem solving and analytical skills C) Knowledge of how a business.
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1) Retailers sell their products to other wholesalers. 2) Merchandising companies include both wholesalers and retailers. 3) All companies have the same types of inventories. 4) Merchandising and manufacturing companies have finished goods inventory. 5) Which of the following are merchandising companies? A) Manufacturers B) Retailers C) Wholesalers D) Both Retailers and Wholesalers 6) Raw materials, work in process.
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24) An example of the IMA's competence standard is to: A) abstain from engaging in or supporting any activity that might discredit the profession. B) communicate information fairly and objectively. C) keep information confidential, except when disclosure is legally required. D) provide decision support that is accurate, clear, concise and timely. 25) Attending class to.
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21) Managerial accountants may be responsible for: A) analyzing data. B) communicating results. C) providing decision support. D) all of the above. 22) Which of the following skills are required of managerial accountants? A) The ability to work on a team B) Analytical skills C) Oral and written communication skills D) All of the above 23) Which would be a.
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21) What are the four primary responsibilities of managers as described in the chapter? Give an example of each type of responsibility. 22) Indicate which of the four primary responsibilities of managers is described by each of the following statements: a. Setting goals and objectives b.The process in which management engages while it.
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Learning Objective 12.2 Questions 1) Fulton Company has the following data available: Wage Expense, For the Year Ending December 31, 2X13 $95 Wage Expense, For the Year Ending December 31, 2X12 $90 What is the percentage increase or (decrease) in wage expense from 2X12 to 2X13 for Fulton Company? A) 5.3% B) (5.3)% C) 2.6% D) (5.6)% E) 5.6% 2).
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31) Under Sarbanes-Oxley, companies must have their internal audit procedures assessed: A) annually. B) monthly. C) quarterly. D) at any time they choose. 32) Under Sarbanes-Oxley, what is the maximum number of years of imprisonment for knowingly destroying or creating documents to obstruct any federal investigation? A) 5 years B) 10 years C) 15 years D) 20 years 33) Which.
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11) The standards of the Society of Management Accountants Code of Professional Ethics include which of the following? A) Integrity B) Honesty C) Fairness D) Objectivity 12) Categorize each of the following activities as to which management responsibility it fulfills: planning, directing, controlling, or decision making. a. The decision to increase sales in the next fiscal period. b..
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41) Managerial accounting is needed by which type of company? A) Manufacturers B) Retailers C) Service D) All of the above 42) Which services are CA firms allowed to provide to audit clients? A) Bookkeeping B) Consulting C) Information systems design D) Tax preparation 43) Exchanging information to reduce costs, speed delivery, and improve quality is the definition of: A) ERP. B).
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26) Floatlin Company has the following income statements available: Floatlin Company Comparative Statements of Income For the Years Ending December 31, 2X13 and 2X12 2X132X12 Sales $750 $690 Cost of Goods Sold 440 400 Gross Profit $310 $290 Less: Operating Expenses 220 205 Operating Income $ 90 $ 85 Less: Income Tax Expense 40 37 Net Income $ 50 $ 48 Determine.
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Learning Objective 12.6 Questions 1) Over the Top, Inc. sells one of its four swing sets. The company regularly sells seasonal outdoor furniture. How shall the gain on the sale be classified on the income statement? A) Extraordinary item B) Ordinary income C) Accounting Change D) Discontinued Operation E) Recapture 2) It is now 2X09 and Jump.
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14) Preparing financial statements in accordance with GAAP is an example of: A) competence. B) integrity. C) objectivity. D) credibility. 15) Communicating information fairly and objectively represents what ethical standard? A) Competence B) Confidentiality C) Credibility D) Integrity 16) Performing duties in accordance with relevant laws, regulations, and technical standards make up which SMA professional ethics standard? A) Competence B) Confidentiality C) Credibility D).
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21) IFRS stands for: A) International and Foreign Reporting Systems. B) International Financial Reporting Standards. C) Important Foreign Registering Systems. D) International and Foreign Registering Standards. 22) XBRL stands for: A) eXtensible Business Reporting Language. B) eXisting Business Responsibility Language. C) eXtensive Business Registering Location. D) eXtractable Business Reporting Location. 23) The advantages of XBRL include decreases in the need.
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11) Presented below are the balance sheets of Tallton Company and Handel Company at January 1, 2X13: Handel Company               Tallton Company Balance Sheet Balance Sheet January 1, 2X13 January 1, 2X13 Cash $ 70 Cash $240 Net Fixed Assets 210 Net Fixed Assets 210 Total Assets $280Total Assets $450 Accounts Payable $ 20 Accounts Payable $.
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25) For each of the decision/action described below indicate which of the four stages of management it involves: a. Making a determination about the appropriate level of advertising expenditures. b. Increasing marketing efforts. c. Implement an employee training program to improve moral. d. Setting a target level of employee turnover. 26) For each of the.
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11) What type of company resells products it previously purchased ready-made from suppliers? A) Merchandiser B) Retailer C) Wholesaler D) All of the above 12) Before these materials are used to manufacture its cars, Honda classifies steel, glass, and plastic as: A) finished goods inventory. B) raw materials inventory. C) work in process inventory. D) merchandise inventory. 13) Wal-Mart classifies.
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Learning Objective 12.1 Questions 1) In addition to annual reports, financial information regarding a company can come from all of the following sources EXCEPT A) a company's own press releases. B) the popular press. C) stockbrokers. D) a company's Web site. E) the Internal Revenue Service. 2) When analyzing the financial statements of a potential debtor, the.
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1) The CFO of a company is responsible for the day-to-day running of the company. 2) The treasurer and the controller report directly to the CFO. 3) The internal audit department reports directly to the subcommittee of the board of directors called the audit committee. 4) In most companies, managerial accountants no longer.
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Learning Objective 12.7 Questions 1) When the PEG ratio for a stock is less than 0.5, this indicates that the A) market believes the earnings growth estimate reflected in the consensus forecast is too low. B) market expects the future EPS growth to be greater than currently reflected in the analysts' consensus forecast.
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29) Comparative balance sheets are available for Floatlin Group: Floatlin Group Comparative Balance Sheets December 31, 2X13 and 2X12 2X132X122X13 2X12 Current Assets: Current Liabilities: Cash $ 20$ 15Accounts Payable $ 24 $ 20 Accounts Receivable 4537Taxes Payable 1115 Inventory 6070Note Payable 718 Total Current Assets $125$122Total Current Liab. $ 42$ 53 Long-Term Assets: Long-Term Liabilities 8030 Equipment $290$200Total Liabilities $122$.
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Learning Objective 12.5 Questions 1) Big Apple Cabins has net income of $725,000. Throughout the year, the company had 150,000 shares of common stock outstanding. Also, the company has 25,000 shares of preferred stock that pay a dividend of $5.00 per share that is convertible into 5 shares of common stock.
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11) Which of the following certifications is issued by the Society of Management Accountants? A) CPA B) CMA C) CIA D) CFP 12) A CFO would have all of the following responsibilities EXCEPT: A) preparing all corporate tax returns. B) managing corporate financing. C) providing reports to creditors as required. D) investing in new equipment. 13) Who typically manages the.
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51) Edwards Restaurant Supplies is investigating the possibility of adopting a lean production philosophy throughout their organization. Estimated costs to set up the computer system are $650,000; training employees in lean production is estimated to cost $175,000; and the general expenses of establishing the program are estimated at $35,000. The.
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