Professional Documents
Culture Documents
If Jenks applies the LCM basis, the value of the inventory reported on
the balance sheet would be
Question 15
Selection of an inventory costing method by management does not
usually depend on
Question 16
Which statement concerning lower of cost or market (LCM) is
incorrect?
Question 17
Use the following information regarding Black Company and Red
Company to answer the question Which of the following is Red
Company's "cost of goods sold" for 2014 (to the closest dollar)?
Question 18
A low number of days in inventory may indicate all of the following
except
Question 19
The LIFO reserve is
Question 20
Match the items below by entering the appropriate code letter in the
space provided.
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Using the above information, determine the cash balance per books
(before adjustments) for the Clark Company.
Question 17
Of the following employees, who should prepare the bank
reconciliation?
Question 18
In the month of May, Lopat Company Inc. wrote checks in the
amount of $55,500. In June, checks in the amount of $75,948 were
written. In May, $50,808 of these checks were presented to the bank
for payment, and $65,298 in June. What is the amount of outstanding
checks at the end of May?
Question 19
All of the following are true regarding the management and
monitoring of cash except
Question 20
Match the items below by entering the appropriate code letter in the
space provided.
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How what is the total effect of these transactions on Free Cash Flow,
Current Cash Debt Coverage, and Cash Debt Coverage respectively?
Free Current Cash Debt Cash
Debt
Cash
Flow Coverage Coverage
Question 19
All of the following statements are true regarding cash flow
presentations except
Question 20
For each of the following items, indicate by using the appropriate
code letter, how the item should be reported in the statement of cash
flows, using the indirect method.
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How what is the total effect of these transactions on Free Cash Flow,
Current Cash Debt Coverage, and Cash Debt Coverage respectively?
Free Current Cash Debt Cash
Debt
Cash
Flow Coverage Coverage
Question 19
All of the following statements are true regarding cash flow
presentations except
Question 20
For each of the following items, indicate by using the appropriate
code letter, how the item should be reported in the statement of cash
flows, using the indirect method.
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Nikoto produced 40,000 tons of steel during March. How much is the
flexible budget for total manufacturing costs for March?
Question 11
At 18,000 direct labor hours, the flexible budget for indirect materials
is $36,000. If $37,400 are incurred at 18,400 direct labor hours, the
flexible budget report should show the following difference for
indirect materials
Question 12
Top management can control
Question 13
A manager of a cost center is evaluated mainly on
Question 14
Given below is an excerpt from a management performance report:
Budget Actual
Difference
Sales $ 1,400,000
Controllable margin 160,000
Total average assets 4,000,000
Fixed costs 100,000
If 2013 is the base year, what is the percentage increase in sales from
2013 to 2014?
Question 17
Laser Performance Inc. has the following information available
(amount in thousands).
Net Income $30,000
Average Total Liabilities 80,000
Average Current Liabilities 36,000
Cash Provided by Operations 48,000
Cash Sales 130,000
Capital Expenditures 22,000
Dividends Paid 6,000
What is the current cash debt coverage?
Question 18
Which of the following income statement figures would probably be
the best indicator of a companys future performance?
Question 19
Which one of the following is not a benefit of budgeting?
Question 20
The single most important output in preparing financial budgets is the
Question 21
Zoum Corporation had the following transactions during 2014:
Question 25
Which of the following is the least likely consideration that managem
ent uses when deciding whether to pay a dividend?
ACC 556 - Midterm part 2
Question 1
Which of these would cause the inventory turnover ratio to increase th
e most?
Question 2
Bad Debt Expense is considered
Question 3
A trial balance proves
Question 4
Fehr Company sells merchandise on account for $5,000 to Kelly Com
pany with credit terms of 2/10, n/30. Kelly Company returns $1,000 o
f merchandise that was damaged, along with a check to settle the acco
unt within the discount period. What is the amount of the check?
Question 5
A revenue generally
Question 6
A merchandiser will earn an operating income of exactly $0 when
Question 7
Smithson Corporations unadjusted trial balance includes the followin
g balances (assume normal balances):
Accounts Receivable $3,357,000
Allowances for Doubtful Accounts $ 63,900
Bad debts are estimated to be 6% of outstanding receivables. What a
mount of bad debt expense will the company record?
Question 8
All of the following are characteristics of every accounting informatio
n system except it is a system
Question 9
Receivables are
Question 10
Regions Inc. pays its rent of $48,000 annually on January 1 and make
s monthly adjusting entries. If the February 28 monthly adjusting entr
y for prepaid rent is omitted, which of the following are true?
Question 11
What is an advantage of using the multiple-step income statement?
Question 1
Which of these would cause the inventory turnover ratio to increase th
e most?
Question 2
Bad Debt Expense is considered
Question 3
A trial balance proves
Question 4
Fehr Company sells merchandise on account for $5,000 to Kelly Com
pany with credit terms of 2/10, n/30. Kelly Company returns $1,000 o
f merchandise that was damaged, along with a check to settle the acco
unt within the discount period. What is the amount of the check?
Question 5
A revenue generally
Question 6
A merchandiser will earn an operating income of exactly $0 when
Question 7
Smithson Corporations unadjusted trial balance includes the followin
g balances (assume normal balances):
Accounts Receivable $3,357,000
Allowances for Doubtful Accounts $ 63,900
$2,000
3.Propose two (2) methods and techniques that the company should
use to manage its budget over time in preparation for the fact that
budgets are ever changing. Justify your response.