Acct 202 Final Review

70 Questions  I  By Bsawyer
Review for final exam in Accounting 202.  

  
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1.  Which one of the following items is not generally used in preparing a statement of cash flows?
A.
B.
C.
D.
2.  The primary purpose of the statement of cash flows is to:
A.
B.
C.
D.
3.  The statement of cash flows will not report the:
A.
B.
C.
D.
4.  The acquisition of land by issuing common stock is:
A.
B.
C.
D.
5.  The order of presentation of activities on the statement of cash flows is:
A.
B.
C.
D.
6.  Investing activities include:
A.
B.
C.
D.
7.  Generally, the most important category on the statement of cash flows is cash flows from:
A.
B.
C.
D.
8.  If accounts payable have increased during a period,
A.
B.
C.
D.
9.  In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is:
A.
B.
C.
D.
10.  Meyer Co. reported net income of $40,000 for the year. During the year, AR increased by $14,000, AP decreased by $6,000 and depreciation expense of $10,000 was recorded. Net cash provided by operating activities for the year is:
A.
B.
C.
D.
11.  Flynn Co. reported a net loss of $10,000 for the year ended December 31, 2002. During the year, AR decreased $10,000, merchandise inventory increased $16,000, AP increased by $20,000, and depreciation expense of $10,000 was recorded. During 2002, operating activities:
A.
B.
C.
D.
12.  Which of the following would be subtracted from net income using the indirect method?
A.
B.
C.
D.
13.  Which of the following would be added to NI using the indirect method?
A.
B.
C.
D.
14.  The statement of cash flows will not provide insight into:
A.
B.
C.
D.
15.  Rodman Co. had credit sales of $650,000. The beginning AR balance was $40,000 and the ending AR balance was $140,000. What were the cash collections from customers during the period?
A.
B.
C.
D.
16.  Which of the following statement(s) describe the principal reason(s) why investors and creditors use financial statement analysis?
A.
B.
C.
D.
17.  Short-term liquidity is:
A.
B.
C.
D.
E.
18.  Wages paid to the factory supply shop foreman are considered an example of:
A.
B.
C.
D.
19.  An example of direct labor cost is wages paid to:
A.
B.
C.
D.
20.  Direct materials cost is:
A.
B.
C.
D.
21.  When volume or level of activity decreases, variable cost will:
A.
B.
C.
D.
22.  Which of the following costs could contain both variable and a fixed cost element with respect to the total output of the company?
A.
B.
C.
D.
23.  Within the relevant range:
A.
B.
C.
D.
24.  Financial and managerial accounting are similar in that both:
A.
B.
C.
D.
25.  Last month a manufacturing company had the following operating results:Beg. FG: $84,000End FG: $71,000Sales: $505,000GM: $63,000What was COG Mfg?
A.
B.
C.
D.
26.  Haagen Inc. is a merchandising company. Last month the company's cost of goods sold was $92,000. The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000. What was the total amount of the company's merchandise purchases for the month?
A.
B.
C.
D.
27.  During the month of May, Cassidy Manufacturers incurred $30,000, $40,000 and $20,000 of DM, DL, and OH costs, respectively. If the COG Mfg was $95,000 and the ending WIP inventory was $15,000, the beginning WIP must have been:
A.
B.
C.
D.
28.  The manufacturing operation that would be most likely to use a job-order costing system is:
A.
B.
C.
D.
29.  In computing its predetermined OH rate, Brady Co. included its factory insurance cost twice. This error will result in:
A.
B.
C.
D.
30.  In a job-order cost system, the application of OH usually would be recorded as a debit to:
A.
B.
C.
D.
31.  The balance in WIP equals:
A.
B.
C.
D.
32.  Karvel Corp. uses a predetermined OH rate based on machine-hours to apply manufacturing OH to jobs. For the month of August, Karvel estimated total OH costs at $300,000 and total machine-hours at 75,000 hours. Actual results for the period were OH costs of $290,000 and 75,000 machine-hours. As a result Karvel would have:
A.
B.
C.
D.
33.  The Collins Co. uses predetermined OH rates to apply manufacturing to jobs. The rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the company made the following estimates:Dept. A:DL cost $65,000OH $91,000DL-hours 8,000Machine-hours 3,000Dept. B:DL cost $42,000OH $48,000DL hours $10,000Machine-hours 12,000What rates would be used in Dept. A and B. respectively?
A.
B.
C.
D.
34.  Galbraith Co. applies OH to jobs on the basis of 70%DL cost. If job 201 shows $28,000 of OH applied, the DL cost on the job was:
A.
B.
C.
D.
35.  Guerra Electronics manufactures a variety of electronic gadgets for use in the home. Which of the following would probably be the most accurate measure of activity to use for allocating the cost of inspecting the finished products at Guerra?
A.
B.
C.
D.
36.  In an activity-based costing system, activity rates are used to:
A.
B.
C.
D.
37.  In ABC, the total OH cost in an activity pool can be computed by:
A.
B.
C.
D.
38.  In ABC,
A.
B.
C.
D.
39.  In ABC, manufacturing OH is credited when OH is applied to products using activity rates.
A.
B.
40.  The activity rates in ABC are computed by dividing the OH in each production department by its DL-hours.
A.
B.
41.  Which of the following types of entities would most likely use a process costing system?
A.
B.
C.
D.
42.  Darvin company uses the weighted-average method in its process costing system. The Welding Dept. started the month with 20,000 units in beginning WIP that were 10% complete with respect to conversion costs. The conversion cost in this beginning WIP inventory was $7,000. An additional 63,000 units were started into production during the month. There were 10,000 units in the ending QIP inventory that were 10% complete with respect to conversion costs. A total of $237,600 in conversion costs were incurred in the dept. during the month.What would be the cost per equivalent unit for conversion costs for the month?
A.
B.
C.
D.
43.  Hall Co. uses the weighted-average method in its process costing system. The Welding Dept. started the month with 18,000 units in its beginning WIP inventory that were 60% complete with respect to conversion costs. The conversion cost in this beginning WIP inventory was $64,800 . An additional 84,000 units were started into production during the month and 78,000 units were completed in the Welding Dept. and transferred to the next Dept. There were 24,000 units in the ending WIP inventory that were 30% complete with respect to conversion costs. A total of $431,520 in conversion costs were incurred in the dept. during the month. What would be the cost per equivalent unit for conversion costs for the month?
A.
B.
C.
D.
44.  The Assembly Dept. started the month with 78,000 units in its beginning WIP. An additional 254,000 units were transferred in from the prior department during the month to begin processing in the Assembly Dept. There were 21,000 units in the ending WIP for this dept.How many units were transferred to the next processing dept. during the month?
A.
B.
C.
D.
45.  Earnings per share of common stock is computed by:
A.
B.
C.
D.
46.  Which of the following would be considered a "source" of cash for purposes of constructing a statement of cash flows?
A.
B.
C.
D.
47.  Under the indirect method of determining net cash provided by operating activities on the statement of cash flows, which of the following would be recorded as a deduction from net income?
A.
B.
C.
D.
48.  In a statement of cash flows, a change in the taxes payable account would be classified as:
A.
B.
C.
D.
49.  Indirect labor is a part of:
A.
B.
C.
D.
50.  Depreciation on a personal computer used in the marketing department of a manufacturing firm would be classified as:
A.
B.
C.
D.
51.  Aable Co. manufacturing OH is 20% of its total conversion costs. If DL $45,000 and if DM are $53,000 the manufacturing OH is:
A.
B.
C.
D.
52.  Emco Co. uses DL cost as a basis for computing its predetermined OH rate. In computing the predetermined OH rate for last year, the company misclassified a portion of DL cost as indirect labor. The effect of this misclassification will be to:
A.
B.
C.
D.
53.  On the schedule of COG Mfg, the final COG Mfg figure represents:
A.
B.
C.
D.
54.  Under a job-order costing system, the dollar amount transferred from WIP to FG is the sum of the costs charged to all jobs:
A.
B.
C.
D.
55.  Crich Co. uses DL-hours in its predetermined OH rate. At the beginning of the eyar, the estimated DL-hours were 21,800 hours and the total estimated OH was $497,040. At the end of the year, actual DL-hours for the year were 21,500 hours and the actual OH for the year was $492,040. OH at the end of the year was:
A.
B.
C.
D.
56.  In ABC, OH is credited when OH is applied to products using activity rates.
A.
B.
57.  In describing the cost formula equation, Y=a + bX, which of the following is correct:
A.
B.
C.
D.
58.  The CM ratio always increases when the:
A.
B.
C.
D.
59.  The break-even point in unit sales is found by dividing total fixed expenses by:
A.
B.
C.
D.
60.  Carver Co. produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and admin. costs are $4 per unit. A selling commission of 15% of the selling price is paid on each unit sold. The CM per unit is:
A.
B.
C.
D.
61.  Wenig Inc. has some material that originally cost $73,500. The material has a scrap value of $45,600 as is, but if reworked at a cost of $6,600, it could be sold for $58,100. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as scrap?
A.
B.
C.
D.
62.  Winger Corp. sells a product for $5 per unit. The fixed expenses are $210,000 and the unit variable expenses are 60% of the selling price. What sales would be necessary in order for Winger Corp. to realize a profit of 10% of sales?
A.
B.
C.
D.
63.  Kahn Co. produces and sells 8,000 units of Product X each year. Each unit of Product X sells for $10 and has a CM of $6. It is estimated that if Product X is discontinued, $50,000 of the $60,000 in fixed costs charged to Product X could be eliminated. These data indicate that if Product X is discontinued, overall company net operating income should:
A.
B.
C.
D.
64.  Total variable cost divided by sales revenue is:
A.
B.
C.
D.
E.
65.  Which statement is not true about cost-volume profit (CVP) analysis?
A.
B.
C.
D.
E.
66.  Which is the equation for operating income?
A.
B.
C.
D.
E.
67.  If actual sales equal break-even sales:
A.
B.
C.
D.
E.
68.  Firm X and Firm Y are competitors within the same industry. Firm X produces its product using large amounts of DL. Firm Y has replaced DL with investment in machinery. Projected sales for both firms are 15% LESS than in the prior year. Which statement regarding projected profits is TRUE?
A.
B.
C.
D.
69.  Which of the following would probably be a VC at college?
A.
B.
C.
D.
70.  The relevant range:
A.
B.
C.
D.
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