Acc 561 final exam | Social Science homework help

1) The statement of cash flows is used for _____.

Don't use plagiarized sources. Get Your Custom Essay on
Acc 561 final exam | Social Science homework help
Just from $13/Page
Order Essay

A.   showing the relationship of net income to changes in current assets

B.   determining a company’s acceptable level of debt financing C.   revealing commitments that may restrict future courses of action D.   evaluating the creditworthiness of the organization


2) Nonoperating items on the income statement _____.

A.   are revenues and expenses arising from adjusting entries B.   include interest income and expense C.   appear only on corporate income statements D.   appear on the income statement immediately after gross profit


3) The difference between a single-step and multiple-step income statement is that a single-step income statement _____.

A.   groups all revenues together and all expenses together, whereas a multiple-step income statement separates certain revenues and expenses from each other and presents subtotals

B.   calculates net income using one method, whereas a multiple-step income statement calculates net income using two or more methods

C.   calculates gross profit and operating income, whereas a multiple-step income statement does not D.   shows only 1 year’s net income, whereas a multiple-step income statement shows multiple years’ net income


4) Which one of the following statements is true?

A.   The statement of cash flows reports the cash receipts but not cash payments of an entity over a period of time.

B.   Both the statement of cash flows and the income statement determine the net income for a company. C.   Transactions affecting the sale and the purchase or production of goods and services are reported in the financing activities section of the statement of cash flows.

D.   Investing activities in the statement of cash flows include acquiring and selling long-term assets.


5) The _____ accounting convention uses the acquisition cost minus depreciation in valuing an asset on the balance sheet.

A.   continuity    B.   conservatism

C.   cost-benefit D.   materiality


6) A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to _____.

A.   paid-in capital and a credit to retained earnings.

B.   cash and a credit to common stock. C.   retained earnings and a credit to cash. D.   cash and a credit to retained income.


7) Which type of organization would most likely have work-in-process inventory?

A.   A retail store B.   A manufacturing company C.   A service organization D.   A real-estate investment trust


8) _____ is a measure of income or profit divided by the investment required to obtain that income or profit.

A.   Return on sales B.   Capital turnover C.   Return on investment D.   Residual income


9) The following information is available for the Peter Company:

Sales: $150,000

Invested capital: $156,250

ROI: 10%

The return on sales is _____.

A.      10.00% B.   10.42% C.   62.50% D.   9.60%



10) The following information is available for the Peter Company:

Sales: $500,000

Invested capital: $312,500

ROI: 10%

The return on sales is _____.

A.   10.00% B.   6.250%

C.   1.000% D.   62.50%



11) Company A’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____.

A.   75% B.   93.75% C.   18.75% D.   46.88%



12) When the variable costing method is used, fixed factory overhead appears on the income statement as a _____.

A.   component of cost of goods sold

B.   fixed expense C.   production-volume variance D.   component of gross profit


13) In absorption costing, costs are separated into the major categories of _____.

A.   manufacturing and nonmanufacturing B.   manufacturing and fixed C.   fixed and variable D.   variable and nonmanufacturing


14) _____ is another term for variable costing.

A.   Full costing B.   Direct costing C.   Traditional costing D.   Absorption costing


15) Budgeted service department cost rates protects the user departments from _____.

A.   service department efficiencies

B.   price fluctuations C.   service outages D.   employee control


16) _____ is an example of the external financial-reporting purpose of the cost management systems.

A.   The cost of a manufacturing process  B.   The product mix to optimize profitability C.   The amount of inventory that should appear on the balance sheet

D.   Budget reporting


17) The level of sales at which revenues equal expenses and net income is zero is called the _____.

A.   margin of safety B.   contribution margin C.   break-even point D.   marginal income point



18) Output measures of both resources and activities are _____.

A.   cost drivers B.   stages of production

C.   fixed activities D.   variable activities


19) The break-even point is where _____.

A.   total sales revenue equals total cost plus desired profit. B.   the contribution margin equals net income plus fixed costs.

C.   total sales revenue equals total cost. D.   the variable cost equals total cost.


20) _____ budgeting is when budgets are formulated with the active participation of all affected employees.

A.   Financial B.   Team C.   Participative

D.   Shared


21) _____ is the logical integration of management accounting tools to gather and report data and to evaluate performance.

A.   An internal control system B.   A quality control system

C.   A financial-reporting system D.   A management control system


22) _____ are components of a master budget.

A.   A strategic plan and an operating budget B.   An operating budget and a capital budget

C.   A continuous budget and a static budget D.   A cash budget and an activity budget


23) An important factor considered by sales forecasters is _____.

A.   production employee requirements. B.   expectations of the board of directors.

C.   competitors’ activities. D.   the desired level of sales.


24) _____ models are mathematical models of the master budget that can react to any set of assumptions about sales, costs, and product mix.

A.   Variance analysis B.   Financial planning C.   Accounting D.   Futuring


25) Which of the following is an objective of budgeting?

A.   Budgeting provides benchmarks against which performance can be measured. B.   Budgeting provides a fixed fiscal plan that should not be changed during the year. C.   Budgeting helps managers build favorable variances into the performance-evaluation process.

D.   Budgeting is done exclusively by the chief fiscal officer for control purposes.


26) An organization’s budget program should be used

A.   to have power over employees. B.   to assign blame to managers that do not meet budgetary goals. C.   to help managers plan and control the organization’s performance. D.   to help the chief fiscal officer to allocate resources to the favored projects of the executives.


27) The activity-based costing may reveal _________, whereas traditional costing cannot.

A.   high-volume products are overcosted B.   low-volume products are overcosted C.   both high- and low-volume products are overcosted D.   both high- and low-volume products are undercosted


28) _____ is a method of approximating cost functions.

A.   Cost-driver analysis B.   Transaction analysis C.   Product analysis D.   Account analysis


29) In relation to a cost function, the term reliability refers to _____.

A.   whether the costs and activities can be easily observed  B.   whether the cost function conforms to a given mathematical model

C. how well the cost function predicts future costs

D.   how well the cost function explains past cost behavior


30) One of the simplest methods to measure a linear cost function from past data is the _____.

A.   regression analysis method B.   high–low method C.   least squares regression method


D.   visual-fit method

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 30% with the discount code ESSAYHELP