Acct 202 Final Review

70 Questions | Total Attempts: 227

SettingsSettingsSettings
Acct 202 Final Review - Quiz

Review for final exam in Accounting 202.


Questions and Answers
  • 1. 
    Which one of the following items is not generally used in preparing a statement of cash flows?
    • A. 

      Adjusted trial balance

    • B. 

      Comparative balance sheets

    • C. 

      Current income statement

    • D. 

      Additional information

  • 2. 
    The primary purpose of the statement of cash flows is to:
    • A. 

      Provide information about the investing and financing activities during a period.

    • B. 

      Prove that revenues exceed expenses if there is a net income.

    • C. 

      Provide information about the cash receipts and cash payments during a period.

    • D. 

      Facilitate banking relationships.

  • 3. 
    The statement of cash flows will not report the:
    • A. 

      Amount of checks outstanding at the end of the period.

    • B. 

      Sources of cash in the current period.

    • C. 

      Uses of cash in the current period.

    • D. 

      Change in the cash balance for the current period.

  • 4. 
    The acquisition of land by issuing common stock is:
    • A. 

      A noncash transaction that is not reported in the body of a statement of cash flows.

    • B. 

      A cash transaction and would be reported in the body of a statement of cash flows.

    • C. 

      A noncash transaction and would be reported in the body of a statement of cash flows.

    • D. 

      Only reported if the statement of cash flows is prepared using the direct method.

  • 5. 
    The order of presentation of activities on the statement of cash flows is:
    • A. 

      Operating, investing, and financing.

    • B. 

      Operating, financing, and investing.

    • C. 

      Financing, operating, and investing.

    • D. 

      Financing, investing, and operating.

  • 6. 
    Investing activities include:
    • A. 

      Collecting cash on loans made.

    • B. 

      Obtaining cash from creditors.

    • C. 

      Obtaining capital from owners.

    • D. 

      Repaying money previously borrowed.

  • 7. 
    Generally, the most important category on the statement of cash flows is cash flows from:
    • A. 

      Operating activities.

    • B. 

      Investing activities.

    • C. 

      Financing activities.

    • D. 

      Significant noncash activities.

  • 8. 
    If accounts payable have increased during a period,
    • A. 

      Revenues on an accrual basis are less than revenues on a cash basis.

    • B. 

      Expenses on an accrual basis are less than expenses on a cash basis.

    • C. 

      Expenses on an accrual basis are greater than expenses on a cash basis.

    • D. 

      Expenses on an accrual basis are the same as expenses on a cash basis.

  • 9. 
    In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is:
    • A. 

      Added to net income.

    • B. 

      Deducted from net income.

    • C. 

      Ignored because it does not affect cash.

    • D. 

      Not reported on a statement of cash flows.

  • 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. 

      $30,000

    • B. 

      $70,000

    • C. 

      $38,000

    • D. 

      $40,000

  • 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. 

      Used net cash of $14,000

    • B. 

      Used net cash of $24,000

    • C. 

      Provided net cash of $14,000

    • D. 

      Provided net cash of $24,000

  • 12. 
    Which of the following would be subtracted from net income using the indirect method?
    • A. 

      Depreciation expense.

    • B. 

      An increase in AR.

    • C. 

      An increase in AP.

    • D. 

      A decrease in PPD expenses.

  • 13. 
    Which of the following would be added to NI using the indirect method?
    • A. 

      An increase in AR.

    • B. 

      An increase in PPD expenses.

    • C. 

      Depreciation expense.

    • D. 

      A decrease in AP.

  • 14. 
    The statement of cash flows will not provide insight into:
    • A. 

      Why dividends were not increased.

    • B. 

      Whether cash flow is greater than net income.

    • C. 

      The exact proceeds of a future bond issue.

    • D. 

      How the retirement of debt was accomplished.

  • 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. 

      $750,000

    • B. 

      $650,000

    • C. 

      $550,000

    • D. 

      $690,000

  • 16. 
    Which of the following statement(s) describe the principal reason(s) why investors and creditors use financial statement analysis?
    • A. 

      To assess the risks associated with expected returns and to evaluate top and middle level management.

    • B. 

      To assess the risks associated with expected returns, to evaluate top and middle level management, and to predict the amount of expected returns.

    • C. 

      To assess the risks associated with expected returns and to predict the amount of expected returns.

    • D. 

      To establish recommended dividend and interest payments.

  • 17. 
    Short-term liquidity is:
    • A. 

      A company's ability to turn AR into cash.

    • B. 

      A company's ability to meet current payments as they become due.

    • C. 

      Current assets divided by current liabilities.

    • D. 

      A company's ability to sell inventory.

    • E. 

      A company's ability to shift current liabilities into long-term liabilities.

  • 18. 
    Wages paid to the factory supply shop foreman are considered an example of:
    • A. 

      Direct labor and period cost.

    • B. 

      Direct labor not period cost.

    • C. 

      Not direct labor nor period cost.

    • D. 

      Period cost not direct labor.

  • 19. 
    An example of direct labor cost is wages paid to:
    • A. 

      Neither a factory machine operator nor a supervisor in a factory.

    • B. 

      A supervisor in a factory but not a factory machine operator.

    • C. 

      A factory machine operator and a supervisor in a factory.

    • D. 

      A factory machine operator but not a supervisor in a factory.

  • 20. 
    Direct materials cost is:
    • A. 

      A period cost but not a product cost.

    • B. 

      Not a period cost nor a product cost.

    • C. 

      A period cost and a product cost.

    • D. 

      A product cost but not a period cost.

  • 21. 
    When volume or level of activity decreases, variable cost will:
    • A. 

      Increase per unit.

    • B. 

      Increase in total.

    • C. 

      Decrease per unit.

    • D. 

      Decrease in total.

  • 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. 

      Manufacturing OH.

    • B. 

      Sales commissions.

    • C. 

      Direct material.

    • D. 

      Administrative salaries.

  • 23. 
    Within the relevant range:
    • A. 

      Variable cost per unit decreases as production decreases.

    • B. 

      Variable cost per unit increases as product decreases.

    • C. 

      Fixed cost per unit decreases as production decreases.

    • D. 

      Fixed cost per unit increases as production decreases.

  • 24. 
    Financial and managerial accounting are similar in that both:
    • A. 

      Are mandatory.

    • B. 

      Emphasize the organization as a whole.

    • C. 

      Emphasize the relevance and flexibility of data.

    • D. 

      Involve summarizing financial data.

  • 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. 

      $429,000

    • B. 

      $492,000

    • C. 

      $442,000

    • D. 

      $455,000

Back to Top Back to top