1) The standards and rules that are recognized as a general guide for financial reporting are called __________.
D. generally accepted accounting principles
2) What is value chain management best defined as?
A. All activities associated with providing a product or service
3) These are selected account balances on December 31, 2008. Land (location of the corporation’s office building) $150,000 Land (held for future use) 225,000
Corporate Office Building 900,000
Inventory 300,000
Equipment 675,000
Office Furniture 150,000
Accumulated Depreciation 450,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
D. $1,650,000
4) “Generally accepted” in the phrase generally accepted accounting principles means that the principles __________.
D. are proven theories of accounting
5) The cost principle requires that when assets are acquired, they be recorded at __________.
B. exchange price paid
6) The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 The net income (or loss) for the period is __________.
C. $10,000 loss
7) The conceptual framework developed by the Financial Accounting Standards Board __________. C. is viewed as providing a constitution for setting accounting standards for financial reporting
The Essay on Balance Sheet Cash Account Income
Financial Accounting MidTerm I. Debit vs. Credit. Debit Debit = left side of T-accountOn the Balance Sheet a debit indicates: 1. An increase in an asset 2. A decrease in a liability 3. A decrease in shareholders' equity items. Credit Credit = Right side of T-accountOn the Balance Sheet a credit indicates: 1. A decrease in an asset 2. An increase in a liability 3. An increase in shareholders' ...
8) What effect do current technology changes have on managerial accounting? A. Reduction of reporting costs of managerial accounting information
9) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point? C. 6,200 units
10) One of Astro Company’s activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups).
How much of the machine setup cost pool should be assigned to sparklers? B. $60,000
C
11) If a company reports a net loss, it __________.
D. may still have a net increase in cash
12) Managerial accounting __________.
C. pertains to the entity as a whole and is highly aggregated
13) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
D. Factory janitor
14) The major reporting standard for management accounts is __________.
D. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management
