. (TCO 1) Which financial statement is prepared first? (Points :


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May 27, 2012. . (TCO 1) Which financial statement is prepared first? (Points : 4) Balance sheet Income statement Retained earnings statement Statement of cash flows 2. (TCO 1) Management’s views on the company’s short-term debt paying ability, expansion financing, and results of operations are found in which of the following? (Points : 4) auditor’s report management discussion and analysis section notes to the financial statements president’s state of the company report 3. (TCO 4) Using the following balance sheet and income statement data, what is the earnings per share? Current assets $ 7,000 Net income $ 12,000 Current liabilities 4,000 Stockholders’ equity 27,000 Average assets 40,000 Total liabilities 9,000 Total assets 30,000 Average common shares outstanding was 10,000 (Points : 4) $3.60 $4.00 $1.20 $0.83 4. (TCO 4) Which of the following is not considered a measure of liquidity? (Points : 4) Current ratio Working capital Debt to total assets ratio Each of the above are liquidity measures 5. (TCO 2) Which of the following accounts follows the rules of debit and credit, in relation to increases and decreases, in the opposite manner? (Points : 4) Prepaid Insurance and Dividends Dividends and Service Revenues Accounts Payable and Common Stock Advertising Expense and Equipment 6. (TCO 2) The principle purpose of posting is which of the following? (Points : 4) help identify errors made in the journal accumulate the effects of journalized transactions in the individual accounts enter transactions directly into the ledger help determine if the financial statements are ready to be prepared 7. (TCO 3) An accounts payable clerk also has access to the approved supplier master file for purchases. The control principle of _______________________ . (Points : 4) establishment of responsibility is violated independent internal verification is violated documentation procedures is violated segregation of duties is violated 8. (TCO 3) The following information was taken from Hurlbert Company cash budget for the month of June: Beginning cash balance $23,000 Cash receipts 31,000 Cash disbursements 39,000 If the company has a policy of maintaining end of the month cash balance of $20,000, the amount the company would have to borrow is which of the following? (Points : 4) $12,000 $5,000 $15,000 $0 9. (TCO 11) Managerial accounting information does which of the following? (Points : 4) pertains to the entity as a whole and is highly aggregated must be prepared according to generally accepted accounting principles pertains to subunits of the entity and may be very detailed is prepared only once a year 10. (TCO 11) Which one of the following is not a direct material? (Points : 4) A tire used for a lawn mower Plastic used in the covered case for a home PC Steel used in the manufacturing of steel-radial tires Lubricant for a ball-bearing joint for a large crane 11. (TCO 11) Which of the following are period costs? (Points : 4) Raw materials Direct materials and direct labor Direct labor and manufacturing overhead Selling expenses 12. (TCO 11) Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totaling $13,000, and direct materials totaling $15,000. How much is direct labor cost? (Points : 4) $52,000 $37,000 $94,000 $29,000 13. (TCO 11) Hardigan Manufacturing Company reported the following year-end information: beginning work in process inventory, $80,000 cost of goods manufactured, $980,000 beginning finished goods inventory, $50,000 ending work in process inventory, $70,000 and ending finished goods inventory, $40,000 How much is Hardigan’s cost of goods sold for the year? (Points : 4) $980,000 $990,000 $970,000 $1,000,000 14. (TCO 5) Which statement below describes a variable cost? (Points : 4) It varies in total with changes in the level of activity. It remains constant in total over different levels of activity. It varies inversely in total with change…

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