The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…
Our Experts can answer your tough homework and study questions.
– CHAPTER 12 – END OF CHAPTER QUESTIONS: 109.Which of the following is not part of an administrative process? A.The sale of stock B.The sale of bonds C.The write-off of bad debts D.The purchase of marketable securities 110.Which of the following statements is not true regarding source of capital transactions? A.These processes should not be initiated unless.
49.Investment processes: A.issue stock. B.issue bonds. C.purchase of fixed assets. D.invest excess funds. 50.The _____________ of a corporation has the responsibility for making investment decision. A.board of directors. B.chief financial officer. C.treasurer. D.president/CEO. 51.The _____________ of a corporation usually has physical custody of securities held as investments. A.treasurer. B.president/CEO. C.board of directors. D.chief financial officer. 52.Corporations with complex IT systems: A.may automate their investment process. B.still handle.
141.Why is it so important that variance reports be prepared in a timely manner? 142.Explain how a physical inventory count would differ in a company using a perpetual inventory system versus one using a period inventory system. 143.When IT systems are used in conversion processes, what are some of the resulting.
TRUE / FALSE 1.The sale of bonds should be considered a regular, recurring process since these types of transactions are recorded in the general ledger. 2.Administrative processes are transactions and activities that either are specifically authorized by top managers or are used by managers to perform administrative functions. 3.Not all organizations require long-term,.
68. Rework refers to: A.generating a better quote for a customer. B.overhaul of a manufacturing machine. C.additional procedures to bring a product up to specifications. D.parts that are beyond repair at any cost. 69. The final hub in the logistics function which involves a follow-up to production, where the products are inspected.
- CHAPTER 11 – END OF CHAPTER QUESTIONS: 108.Manufacturing has changed in recent years as a result of each of the following factors except: A.globalization B.technological advances C.increased competition D.lack of economic prosperity 109.The term conversion processes is often used synonymously with A.operations. B.production. C.manufacturing. D.All of the above. 110.Which of the following activities is not part of.
69.Closing entries: A.close all of the general ledger accounts. B.end the fiscal period. C.close all of the subsidiary ledger accounts. D.are journalized in the subsidiary ledgers. 70.Today’s automated accounting process: A.is built on a structure independent of manual accounting. B.does not require special journals or subsidiary ledgers. C.is built on an operational structure similar to manual accounting. D.eliminate errors.
169. Using an Internet search engine, search for the terms “Patti Dale” and theft (be sure to include the quotation marks around the name). Explain the unethical behavior that occurred. Also, explain any internal controls that you believe were missing or not followed in this case. .
165. Explain the process of approval of purchases for fixed assets. How does this process differ from that of purchasing raw materials? 166. Using an Internet search engine, search for the phrase “biometric time recording” (be sure to include the quotation marks). Based on your search results, describe a biometric time.
59.Select the correct statement from the following. A.To review purchases from a vendor inspect the purchases journal, to review payments to a vendor inspect the cash receipts journal. B.To review purchases from a vendor and review payments to a vendor inspect the cash disbursements journal. C.To review the purchases from a vendor inspect.
88. Physical controls include all but: A.fences and alarm systems. B.security guards. C.high tech security tools. D.Each of the answers, A, B, and C are correct. 89. Physical inventory counts should only include: A.finished goods. B.finished goods and raw materials. C.finished goods and work-in-process. D.raw materials, work-in-process, and finished goods. 90. When there is a.
58. Production orders: A.outline the specific timing required for sales orders. B.authorize production activities for a particular need or order. C.are forecasts of needs based on known and anticipated sales. D.are issued by the engineering department to correct product deficiency issues. 59. A production schedule: A.does not contain requirements due to sales forecasts. B.does.
141. What are the advantages of outsourcing payroll? 142. Fixed assets are purchased and retired frequently. Given this frequent change, why are clear accounting records of fixed assets necessary? 143. Why is it important to conduct an investment analysis prior to the purchase of fixed assets? 144. Explain why categorizing fixed.
- CHAPTER 11 - SHORT ESSAY 148.Consider a company that is in the business of producing canned fruits for grocery stores. (It is not in the business of growing the fruit.) List the items that would likely be included as this company’s direct materials, direct labor, indirect materials, and other.
137.What should be done when unfavorable variances are discovered? 138.Why would perpetual inventory records be preferable to periodic inventory records in a manufacturing company? 139.Which three activities in the conversion process should require specific authorization before they are begun? 140.Why is it important to separate the functions of inventory control and.
152.For the following activities within the conversion process, place them in sequence that indicates the order in which they would normally be performed: Inspection of goods Materials issuance Preparation of time sheets Preparation of a bill of materials Preparation of an inventory status report Preparation of a production schedule 153.Describe the purpose of each of the.
161.Question not available. 162.Explain how the over-production of inventories can be seen as unethical in an absorption costing environment. 163.Price discounts are commonly used in the business world as incentives for customers. How may this practice (or its misuse) be deemed unethical? 164.Question not available. .
118.If a manufacturing company’s inventory of supplies consists of a large number of small items, which of the following would be considered a weakness in internal controls? A.Supplies of relatively low value are expensed when acquired. B.Supplies are physically counted on a cycle basis, whereby limited counts occur quarterly and each item.
39.Raw material events can be found in which two processes? A.1) Revenue and return processes, systems & controls and 2) expenditures and return processes, systems & controls. B.1) Expenditures and return processes, systems & controls and 2) conversion processes, systems & controls. C.1) Conversion processes, systems & controls and 2) Administrative processes, systems.
132.What are the conversion responsibilities of the maintenance and control, inventory control, inventory stores, and human resources departments? 133.What is the purpose of an inventory status report? 134.What is the overall goal of the inventory control department? 135.What is the purpose of the quality control department? 136.What is the purpose of.
21.Service firm internal reports are more likely to focus on sales and the status of projects. 22.Unethical and fraudulent behaviors are much more likely to be initiated by employees, not .management. 23.One of the reasons that management, not employees, initiate more unethical and fraudulent activities are that employees do not have access.
89.Financial statements: A.are generated from the values of the special journals and subsidiary ledgers. B.are presented with complete chart of account detail. C.may contain condensed data from the general ledger. D.show units in inventory and dollar value of those units. 90.The four general purpose financial statements: A.are generated at the end of each month. B.are generated at.
156.Identify several factors that indicate the need for more extensive internal controls covering conversion processes. 157.Match the IT systems on the left with their definitions on the right: CAD CAM MRP MRP-II ERP CIMs JIT .
154.Describe how a cost accountant would cancel a production order upon completion of the related product. Why is this important? 155.When taking a physical inventory count at a typical manufacturing facility, which category of inventory (raw materials, work-in-process, or finished goods) is likely to be the most time consuming to.
145.What is the difference between CAD, CAM, and CIM? 146.What is the difference between MRP, MRP-II, and ERP? 147.How can conversion processes be manipulated to show higher earnings? .
– CHAPTER 11 – MULTIPLE CHOICE 28. A company’s conversion processes includes all of the following except: A.materials. B. office supplies. C.labor. D.overhead 29. A company must have systems in place to accomplish all of the following except: A.capture data. B.vocalize data. C.record data. D. summarize data. 30. The conversion process is initiated when the company.
– CHAPTER 12 – MULTIPLE CHOICE 29.Capital or investment processes: A.is a regular and frequent event. B.only requires the specific approval of someone such as a senior accountant. C.requires the specific approval of top management or board of directors. D.can be considered revenue since it results in cash inflows. 30.Capital or investment processes: A.is a regular and.
21. MRP stands for Management Resource Projections. 22. Just-in-time (JIT) production systems are concerned with minimizing or eliminating inventory levels of all inventory items. 23. Earnings management is the act of misstating financial information in order to improve financial statement results. 24. Absorption costing involves the inclusion of both.
78. Variances: A.represent the differences between actual costs and the standard costs applied. B.represent the difference between design specifications and production results. C.represent flaws in the production results. D.Each of the answers, A, B, and C are correct. 79. Variances: A.are only investigated if they are unfavorable. B.are always investigated. C.will always result in the.
152. Why might a supervisor collude with an employee to falsify time cards? 153. How does the misclassification of fixed asset expenditures result in misstatement of financial statements? .
11.Business processes in an organization do not include events that are accounting transactions. 12.Subsidiary ledgers maintain the detail information regarding routine transactions, with an account established for each entity. 13.Special journals are journals that are established to record the transactions of specific customers and vendors. 14.In the case of a manual accounting system,.
- CHAPTER 11 - SHORT ANSWER QUESTIONS 123.What are the three resources that an organization must have to conduct a conversion (or transformation) process? 124.Do conversion processes occur in manufacturing companies only? Why or why not? 125Why are conversion activities typically considered routine data processes? 126.Differentiate between a bill of.
38. The process that plans the timing for production activities is referred to as: A.operations list. B.bill of materials. C.scheduling. D.capital budgeting. 39. The form that authorizes production activities for a particular sales order or forecasted needs is referred to as the: A.production schedule. B.production orders. C.maintenance and control process. D.human resources process. 40. The.
TRUE / FALSE 1. Because of the manpower and computer programmers required to control robotics, robotics has had little influence manufacturing. 2. Resources required in the conversion process include materials, labor, overhead, and fixed assets. 3. Even if a firm is a service or sales firm it.
– CHAPTER 10 – SHORT ESSAY 154. Describe the type of information that a human resources department should maintain for each employee. 155. The calculation of gross and net pay can be a complicated process. Explain the items that complicate payroll calculations. .
98. Select the true statement. A.Computer-aided manufacturing (CAM) requires computer-aided design. B.Computer-aided design is always two dimensional. C.Computer-aided design may be three dimensional. D.Computer-aided design requires additional manpower during assembly. 99. Just-in-time (JIT) production systems: A.require close communications with the engineering department. B.do not require close communications with vendors. C.require closely controlled inventory levels. D.do.
– CHAPTER 10 – PROBLEMS 162. Question not available. 163. The text book Web site has a Microsoft Excel spreadsheet titled payroll_problem.xls. This spreadsheet is used by Neltner Company to calculate its bi-weekly payroll. Using the information in that spreadsheet, calculate all details for the February 22, 2008 payroll. Hours worked by each.
99.Unethical or fraudulent behavior 1.can occur in administrative processing of an organization. 2.can occur in the reporting functions of an organization. 3.are much more likely to be initiated by management. 4.are much more likely to be initiated by employees. A.Only 1, 2, and 3 are correct. B.Only 1, 2, and 4 are correct. C.Only 1 and 3.
128.What are the two types of documents or reports are likely to trigger the conversion process? 129.What are the three primary components of logistics? 130.What types of information must be taken into consideration when scheduling production? 131.Differentiate between a routing slip and an inventory status report. .
168. Read the article at this link: http://www.fixedassetinfo.com/articles/adventures1.asp. Describe why the scenario described is unethical. Also, list controls or other steps that management could have taken to prevent or detect this scenario. .
167. Using an Internet search engine, search for the phrase “fixed asset software” (be sure to include the quotation marks). Examine the results to find companies that sell fixed asset software. List and explain some of the features of fixed asset software that these companies use as selling .
48. The component of the logistics function that directs the focus of operations is the: A.operations component. B.resource management component. C.planning component. D.the sales component. 49. The planning component of the logistics function has all of the following elements except: A.maintenance and control. B.engineering. C.scheduling. D.capital budgeting. 50. The resource management component of the logistics.
79.Segregation of duties: A.remains unchanged between computerized and manual accounting. B.may be more difficult in less complex computerized accounting systems. C.is not a factor with computerized accounting systems. D.is not a factor with manual accounting systems. 80.When transactions are posted in a computerized accounting system: A.the user must post all transactions awaiting in the module. B.segregation of.
156. Explain how duties are segregated in payroll. Specifically, who or which departments conduct the authorization, timekeeping, recording, and custody functions? 157. Explain the various reconciliation procedures that should occur in payroll. 158. Explain the ways in which electronic transfer of funds can improve payroll processes. .
145. What are some of the practical characteristics of fixed assets that complicate the calculation of depreciation? 146. What is different about the nature of fixed asset purchasing that makes authorization controls important? 147. Explain the necessity of supervision over fixed assets. .
159. Explain the kinds of information that must be maintained in fixed asset records during the asset continuance phase. 160. The authorization to purchase fixed assets should include investment analysis. Explain the two parts of investment analysis. 161. Explain the types of unethical behavior that may occur in the fixed.
150.List and describe each activity within the planning component of the logistics function. 151.Some companies use the same facility for both inventory stores and warehousing. Describe the difference between these two inventory control activities, and how the respective areas might be distinguished within the facility. .
148. Why are some fixed assets susceptible to theft? 149. Explain why a real-time update of fixed asset records might be preferable to batch processing of fixed asset changes. 150. Why is the beginning of a fiscal year the best time to implement a fixed asset software system? 151. What negative.
11. The final hub in the logistics function is sales. 12. Standard costs are expected costs based on projections of a product’s required resources. 13. Standard costs include direct materials, direct labor, and overhead. 14. Perpetual inventory systems involve updating the inventory and cost of sales accounts only at the .
- CHAPTER 11 - PROBLEMS 158. Question not available. 159.Question not available. 160.Using an Internet search engine, search for the terms “CAD” _“industrial robots.” Identify a company (name and location) that provides manufacturing automation by using robotics. Describe some of the robotic operations that are featured on the company’s website. .
