ACC test 1

Which one of the following would have no impact on the contribution margin per unit?

a change in rent

The Byrde Company recently paid employees for work done in the manufacture of the company's product; when the company records the transaction in an accounting framework it would include __________ and ________________.

(cash) & inventory

Which of the following is correct?

- Assets + liabilities = equity - revenues - expenses - dividends = Net income - beg R/E + net income = ending R/E - Assets + revenues - expenses = R/E - NONE OF THE ABOVE (correct)

The Del Corporation buys collapsible chairs for $50 and sells them for $85; the company has the following sales forecast: June 2,200 units, July 2,800 units and August 3,200 units. Ending inventory for each month should be 20% of the next month's sales. The company had 180 units on hand on June 1st. What total dollar amount would appear on the company's sales budget for July?

238,000

The Nix Company's statement of cash flows reported cash inflows from operating activities of $80,000 and cash outflows from investing activities of $20,000. If the company had a beginning cash balance of $60,000 and an ending cash balance of $150,000, what were its cash flows from financing activities? Use a positive number to indicate a cash inflow or a negative number to indicate a cash outflow.

30,000

Which of the following is not an important factor to consider when preparing a sales forecast?

- new product instructions - seasonal demand variations - a change in the sales team - competitors' actions - ALL OF THE ABOVE ARE IMPORTANT

The Langmore Company recently sold 150 units and had total sales of $4,200. During the same time the company reported variable costs per unit of $18 and net income of $800. If the company's price per unit were increased by $4 and its volume decreased by 10 units, what would be the company's projected net income?

1,260

The Young Company had total sales of $180,000 when the sales volume was 1,500 units. The company's costs included variable cost per unit of $85 and total fixed costs of $65,000. What is the company's break-even point in units (rounded to the nearest whole unit)?

1,857

The Del Corporation buys collapsible chairs for $50 and sells them for $85; the company has the following sales forecast: June 2,200 units, July 2,800 units and August 3,200 units. Ending inventory for each month should be 20% of the next month's sales. The company had 180 units on hand on June 1st. What total dollar amount would appear on the company's budgets for cost of goods sold for June?

110,000

Cosgrove makes all of its sales on account which it collects as follows: 40% in the month of the sale and 60% in the following month. Budgeted sales for the next several months are March $18,000, April $28,000, May $16,000 and June $25,000. Budgeted cash collections for June are

19,600

How many of the following appear on more than one financial statement? Inventory Retained earnings Revenue Net income

2

Of the accounts listed below, how many are impacted when a company sells a product? Revenue Common stock Equipment Cost of Goods Sold

2

The Evans Corporation reported the following cost information for the production of 84,000 units: (a) direct materials of $400,000, (b) direct labor of $200,000, (c) administrative costs of $60,000, (d) overhead costs of $600,000 and (e) selling costs of $70,000. If the company sold 34,000 units, what total dollar amount would it report as cost of goods sold? Round your final answer to the nearest whole dollar.

485,714

If the Dean Corporation had sales of $350,000, total fixed costs of $120,000 and net income of $70,000 when it sold 12,500 units, what is the company's contribution margin ratio (rounded to the nearest 1/10th of a percent)?

54.3%

The Ash Corporation completed the following transactions for the month: (a) Owners begin company by investing $6,000, (b) Paid $200 in employees wages, (c) Purchased $800 of inventory, (d) Sold $600 of the inventory to customers for $1,200 and (e) Purchased $200 of equipment. Based on these transactions, what is the company's cash balance at the end of the month?

6,000

The Dermody Corporation was started in 2017 by its owners who contributed a total of $50,000. During 2017, the company had revenues of $34,000, expenses of $21,000 and dividends of $3,000. What amount would be reported for total equity in the company's 2017 financial statements?

60,000

Wilkes, Inc. has the following sales forecast: 50 units for February, 80 units in March and 100 units in April. Ending inventory for each month should be 10% of the next month's sales. If the company had 20 units on hand at February 1st, how many units should be purchased for March?

82

To assess whether your company could afford to purchase some new equipment immediately, which financial statement should you review?

Balance sheet

In a cash budget a disbursement from an investing activity could include which of the following

Equipment purchases

Which of the following represents items that management intends to sell on an on-going basis?

Inventory

The Petty Company recently returned some equipment it had previously purchased for a refund; when the company records the transaction in an accounting framework it would include _________ and ________________ .

cash & (equipment)

The purchases budget uses all of the following except the

cash receipts

At some point, period costs will appear on a company's

income statement

The salary of the production line manager would be classified as a(n) ____________ cost as well as a __________ cost.

overhead & fixed

The utilities for an administrative facility would be classified as a(n) _________ cost as well as a __________ cost.

period and variable

According to the class notes, a personal balance sheet

refers to total assets minus total liabilities as your net worth

Which of the following costs is most likely the easiest to estimate for a budget?

rent

Which of the following lists the components of the master budget in correct order of preparation?

sales budget, purchases budget, balance sheet budget

as sales volume changes

the effect on net income will depend on the behavior pattern of various costs.