Question 1

Financial accounting is focused on which of the following objectives?

Accepted Answer

A) Providing information that managers need to make operational decisions 
B) Providing summarized information on operational results to investors and creditors 
C) Providing budgets for future periods 
D) Providing highly detailed information on product lines, regions, divisions, etc. 
A) Providing information that managers need to make operational decisions 
B) Providing summarized information on operational results to investors and creditors 
C) Providing budgets for future periods 
D) Providing highly detailed information on product lines, regions, divisions, etc.

Question 2

Harrison Company reports the following cost information for August:   What is cost of goods sold for August?

Accepted Answer

A) $154,500 
B) $125,100 
C) $130,700 
D) $139,800 
A) $154,500 
B) $125,100 
C) $130,700 
D) $139,800

Question 3

Which of the following applies to goods that are produced by a manufacturing company and ready to sell?

Accepted Answer

A) Materials inventory 
B) Work in process inventory 
C) Merchandise inventory 
D) Finished goods inventory 
A) Materials inventory 
B) Work in process inventory 
C) Merchandise inventory 
D) Finished goods inventory

Question 4

Which of the following statements is INCORRECT?

Accepted Answer

A) The primary users of management accounting are the company's managers. 
B) Management accounting information is used to help managers plan and control their operations. 
C) Management accounting information does not require an external audit. 
D) Management accounting information is required to comply with generally accepted accounting principles. 
A) The primary users of management accounting are the company's managers. 
B) Management accounting information is used to help managers plan and control their operations. 
C) Management accounting information does not require an external audit. 
D) Management accounting information is required to comply with generally accepted accounting principles.

Question 5

Which of the following is an example of direct labor?

Accepted Answer

A) Wages of assembly line personnel 
B) Salary of vice president of production 
C) Wages of factory security guard 
D) Salary of production manager 
A) Wages of assembly line personnel 
B) Salary of vice president of production 
C) Wages of factory security guard 
D) Salary of production manager

Question 6

Best Company sells office supplies. The following information summarizes Best's operating activities for 2012:
   Required: Prepare an income statement for Best Company, a merchandiser, for the year ended December 31, 2012.using the format below:

Accepted Answer

The answer of Best Company sells office supplies. The following...

Question 7

Excellent Company sells accounting textbooks. The following information summarizes Excellent's operating activities for 2012:
   Required: Prepare an income statement for the year ended December 31, 2012. Please use the format provided below:

Accepted Answer

The answer of Excellent Company sells accounting textbooks. The following...

Question 8

GAAP requires companies to treat product costs such as factory overhead as an asset until the product is sold.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would probably be considered an indirect material cost in a bakery?

Accepted Answer

A) Spices 
B) Flour 
C) Milk 
D) Eggs 
A) Spices 
B) Flour 
C) Milk 
D) Eggs

Question 10

The following information was obtained from Fizz Company:   How much were Fizz's inventoriable product costs?

Accepted Answer

A) $126,000 
B) $104,100 
C) $127,100 
D) $115,000 
A) $126,000 
B) $104,100 
C) $127,100 
D) $115,000

Question 11

The wages and benefits of the sales staff are product costs.

Accepted Answer

A) True 
 B)False

Question 12

Managerial accounting includes the planning function. Which of the following items would be part of the planning function of a business's managerial accounting?

Accepted Answer

A) Comparing actual performance to previously budgeted amounts 
B) Creating detailed budgets 
C) Implementing operational plans 
D) Evaluating results of operations 
A) Comparing actual performance to previously budgeted amounts 
B) Creating detailed budgets 
C) Implementing operational plans 
D) Evaluating results of operations

Question 13

Best Company sells office supplies. The following information summarizes Best's operating activities for 2012:
   Required: Prepare an income statement for Best Company, a merchandiser, for the year ended December 31, 2012.using the format below. Please include a vertical analysis rounded to the nearest tenth of a percent.

Accepted Answer

The answer of Best Company sells office supplies. The following...

Question 14

Managerial accounting's focus is to provide information for internal planning and control.

Accepted Answer

A) True 
 B)False

Question 15

The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.   What is the gross profit percentage?

Accepted Answer

A) 48% 
B) 56% 
C) 36% 
D) 100% 
A) 48% 
B) 56% 
C) 36% 
D) 100%

Question 16

The wages and benefits of the assembly line workers are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 17

Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 18

Arturo Manufacturing Company provided the following information for the year 2012:   What was the amount of the cost of goods manufactured for the year?

Accepted Answer

A) $591,000 
B) $579,000 
C) $619,000 
D) $607,000 
A) $591,000 
B) $579,000 
C) $619,000 
D) $607,000

Question 19

The sales manager for Baker Products told the shipping department to ship an order to a customer on the last day of December instead of the previously scheduled shipping date of January 2. This would allow the company to book the sales revenue in the year just ended and boost year-end profit. Although done deliberately to boost income, the action did not misrepresent any facts of the situation, and so it would not be considered unethical.

Accepted Answer

A) True 
 B)False

Question 20

Barrington Products is a merchandiser that sells a single type of specialized industrial chemical. Barrington reported the following information for the year 2012:   How much was the unit cost per unit of product sold?
(Please round to nearest cent.)

Accepted Answer

A) $1.40 
B) $1.71 
C) $3.11 
D) $0.21 
A) $1.40 
B) $1.71 
C) $3.11 
D) $0.21

Exam 16: Introduction to Management Accounting

Financial accounting is focused on which of the following objectives?

Harrison Company reports the following cost information for August: What is cost of goods sold for August?

Which of the following applies to goods that are produced by a manufacturing company and ready to sell?

Which of the following statements is INCORRECT?

Which of the following is an example of direct labor?

Best Company sells office supplies. The following information summarizes Best's operating activities for 2012: Required: Prepare an income statement for Best Company, a merchandiser, for the year ended December 31, 2012.using the format below:

Excellent Company sells accounting textbooks. The following information summarizes Excellent's operating activities for 2012: Required: Prepare an income statement for the year ended December 31, 2012. Please use the format provided below:

GAAP requires companies to treat product costs such as factory overhead as an asset until the product is sold.

Which of the following would probably be considered an indirect material cost in a bakery?

The following information was obtained from Fizz Company: How much were Fizz's inventoriable product costs?

The wages and benefits of the sales staff are product costs.

Managerial accounting includes the planning function. Which of the following items would be part of the planning function of a business's managerial accounting?

Managerial accounting's focus is to provide information for internal planning and control.

The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. What is the gross profit percentage?

The wages and benefits of the assembly line workers are included in manufacturing overhead.

Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials.

Arturo Manufacturing Company provided the following information for the year 2012: What was the amount of the cost of goods manufactured for the year?

Barrington Products is a merchandiser that sells a single type of specialized industrial chemical. Barrington reported the following information for the year 2012: How much was the unit cost per unit of product sold? (Please round to nearest cent.)

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, Bonds Payable, and Classification of Liabilities on the Balance Sheet

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

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