ACCT 3309 FINAL

Salem Data Services was able to sell to outside customers all of the commercial hours it had available to sell. (T/F)

F

The following item would be classified as an OPERATING activity on the state.. flows: (I) a. Proceeds from borrowing. b. Repurchase of company stock. c. Payments from customers. d. Payments on loans.

c. Payments from customers.

In a decentralized organization: a. local-division managers have less control over their business segments. b. there are few deviations from the standarized way of doing things. c. front-line employees are not trained to respond to changes in the business enviroment. d. decisions are made by the managers most familiar with the problems and opportunities.

d. decisions are made by the managers most familiar with the problems and opportunities.

During the course of our discussion of the Salem case, we determined that the on-going, long-term equipment leases into which Data Services had entered were not a problem when the shut-down of Data Services was considered. (T/F)

F

In our discussion about the Salem case we concluded the Ms. Wu was an experienced executive who had done a good job managing the successful Data Services start-up. (T/F)

F

In the Tall Tree2 case, we decided that the worksheet prepared by the controller, Mr. Martino, was accurate and useful in analyzing of the profitability of special events such as the Stars & Stripes event. (T/F)

F

Because of its relationship with Salem Telephone, Salem Data Services was able to avoid many of the expenses that an independent company would have encountered. (T/F)

T

Sanchez & Ryan, Inc. sells a single porduct. This year 20,000 units were sold... $130,000 of sales revenue, $60,000 of variable costs, and $17,500 of fixed costs. Using the data in question ( ), if sales increase by $19,500... a. $10,500. b. $17,500. c. $19,500. d. $35,000.

a. $10,500

When deciding to purchase a new cutting machine or continue using the old machine, the following costs are all relevant EXCEPT the: (MA 3) a. $100,000 cost of the old machine. b. $40,000 cost of the new machine. c. $20,000 disposal value of the old machine. d. $6,000 annual savings in operating costs if the new machine is purchased.

a. $100,000 cost of the old machine.

Orbach Company Income Statement On a percentage basis, how much did Orbach Sales change from 2009 to 2010? (UFS 5) a. -14.9% b. 14.9% c. 17.5% d. -17.5

a. -14.9%

Smithson Company financial statements for 2015. (UFS 5) What is the Current Ratio? a. 2.16 : 1 b. 0.71 : 1 c. 1.92 : 1 d. 10.23 : 1 Current Ratio = (Current Assets)/(Current Liabilities)

a. 2.16 : 1

Smithson Company financial statements for 2015. (UFS 5) What is Inventory Turnover? a. 37.89 times b. 40.79 times c. 25.26 times d. 40.00 times Inventory Turnonve = (Cost of Goods Sold)/(Average Inventory)

a. 37.89 times

Place the following steps for the implementation of target costing for a product in order: A = Derive a target cost B = Develop a target selling price C = Perform value engineering D = Determine target profit margin a. B D A C b. B A D C c. A D B C d. A B C D

a. B D A C

When forming a conclusion about a financial metric (ratio), you should do all of the following EXCEPT: (UFS 5) a. Be certain that the ratio is computed using the universally accepted standard formula for that measure. b. Compare it to the same metric from prior years. c. Compare it to industry averages and/or competitors. d. Weigh it against other metrics for that company for that year.

a. Be certain that the ratio is computed using the universally accepted standard formula for that measure.

According to Section 302 of the Sarbanes-Oxley Act, who... financial statements of a public company?(I) a. CEO and CFO. b. Public Company Accounting Oversight Board. c. SEC. d. External auditor.

a. CEO and CFO.

What is the primary purpose of any business?(I) a. Create value for owners. b. Maximize revenue. c. Create value for customers. d. Create net income.

a. Create value for owners.

Which method of inventory assumes the last units purchased will remain in ending inventory on the balance sheet?(I) a. FIFO. b. LIFO. c. Average cost. d. LIFO and FIFO.

a. FIFO.

Which of the following statements is true?(I) a. Foreign firms registered with the SEC may file reports based on IFRS. b. U.S. firms registered with the SEC must file reports based on IFRS. c. The European Union requires frims to report based on GAAP. d. Foreign firm register with the SEC may file reports based on IFRS... they reconcile all amounts to GAAP.

a. Foreign firms registered with the SEC may file reports based on IFRS.

Which format of the income statement should be used for analysis purposes?(I) a. Multiple step. b. Cash basis. c. Single-step. d. Accural basis.

a. Multiple step.

What is the preferred method to generate cash in a firm?(I) a. Operating activities. b. Investing activities. c. Financing activities. d. Investing and financing activities.

a. Operating activities.

Which ratios tell us what kind of return the organization creates for its owners? (UFS 5) a. Profitability b. Liquidity c. Solvency d. Financing

a. Profitability

How are sale reported on the income statement?(I) a. Sales are shown for three years net of returns and allowances. b. Sales amounts are inflation-adjusted. c. Sales are shown for two years and are reported in normal terms. d. Sales are shown at gross amounts, adjusted for inflation.

a. Sales are shown for three years net of returns and allowances.

In job order costing, individual jobs and products will be allocated different amounts of overhead costs depending on whether a single cost pool or multiple cost pools is used. a. True b. False

a. True

When will a firm regard goodwill on its books?(I) a. When one company acquires another company for a price in excess of the face value of the net identifiable assets acquired. b. When the firm donates property to charities. c. When it is determined that the firm's customers have a really high opinion... company. d. When fixed assets are impaired.

a. When one company acquires another company for a price in excess of the face value of the net identifiable assets acquired.

Fixed manufacturing costs: (MA 3): a. are generally indirect costs. b. vary with production or sales volume. c. include parts and materials used to manufacture a product. d. can be adjusted in the short run to meet actual demands.

a. are generally indirect costs.

A decentralized organization does all the following EXCEPT it: a. encourages local success rather then organizational success. b. trains employees in skills needed for decision makin. c. assigns responsibility to front-line employees. c. adapts to the local business enviroment.

a. encourages local success rather then organizational success.

The break-even point in units is: a. fixed costs divided by contribution margin per unit. b. total costs divided by variable costs per unit. c. contribution margin per unit divided by revenue per... d. (fixed costs plus costs) divided by contribution...

a. fixed costs divided by contribution margin per unit.

Management accounting: (MA 1) a. is both retrospective, providing feedback about past operations, and also prospective, incorporating forecasts and estimates about future events. b. is primarly oriented to external stakeholders. c. must be consistent with rules formulated by the Financial Accounting Standards Board (FASB). d. provides information that is generally available only on a quarterly or annual basis.

a. is both retrospective, providing feedback about past operations, and also prospective, incorporating forecasts and estimates about future events.

Measuring performance based on cost per unit will motivate performance that includes keeping _____ under control. a. only costs b. costs and on-time delivery c. costs and the amount of defects d. only quality

a. only costs

Performance measures for financial control include all of the following EXCEPT: a. reduced cycle times. b. ROI (return on investment) and economic value added. c. profit. d. cost.

a. reduced cycle times.

The best chance of incorporating engineering and manufacturing efficiency into product and services is during the: a. research, development, and engineering cycle. b. manufacturing cycle. c. post-sale service and disposal cycle. d. operating cycle.

a. research, development, and engineering cycle.

By some estimates, 80% of a product's total life costs are committed by decisions made during the ______ cycle. a. research, development, and engineering b. manufacturing c. post-sale service and disposal d. operating

a. research, development, and engineering.

A cost center is a business segment: a. that usually evaluates employee performance by comparing the center's actual costs with target or standard costs for the amount and type of work done. b. in which interperiod cost comparisons can be misleading if the output level and production mix are constant. c. that usually includes individual stores within a department-store chain. d. that should be evaluated solely on its ability to control and reduce costs.

a. that usually evaluates employee performance by comparing the center's actual costs with target or standard costs for the amount and type of work done.

Sanchez & Ryan, Inc. sells a single porduct. This year 20,000 units were sold... $130,000 of sales revenue, $60,000 of variable costs, and $17,500 of fixed costs. The contribution margin per unit was: (MA 3) a. $6.50 b. $3.50 c. $3.00 d. $1.75 = (Sales Revenue - Variable Costs)/(Units Sold)

b. $3.50

Orbach Company Income Statement In a common-size analysis, what percentage would you show for Operating ex... for 2010? (UFS 5) a. -13.% b. 10.3% c. 15.2% d. 8.8%

b. 10.3%

Sanchez & Ryan, Inc. sells a single porduct. This year 20,000 units were sold... $130,000 of sales revenue, $60,000 of variable costs, and $17,500 of fixed costs. Using the data in question ( ), how many units must Sanchez sell... a profit of $35,000? (MA 3) a. 20,000 units. b. 15,000 units. c. 10,000 units. d. 5,000 units.

b. 15,000 units

Smithson Company financial statements for 2015. (UFS 5) What is the Days' Sales in Receivables? a. 17.66 days b. 23.54 days c. 10.14 days d. 15.84 days Days' Sales in Inventory = (EOY Inventory)/(Sales/365)

b. 23.54 days

Orbach Company Income Statement In a common-size analysis, what percentage would you show for Gross profit... 2009? a. 27.5% b. 26.9% c. 16.8% d. 10.0%

b. 26.9%

Use the following information for Jett Co. to answer this question.(I) Jett Co.'s gross profit, operating profit, and net profit margins for 2015 are: a. 50.0%, 32.5%, 22.5%, respectively. b. 29.2%, 12.5%, 10.0%, respectively. c. 27.0%, 11.0%, 10.5%, respectively. d. 21.5%, 17.5%, 12.0%, respectively.

b. 29.2%, 12.5%, 10.0%, respectively.

Which ratios measure the extent of a firm's financing with debt relative to equity and its ability to cover interest and fixed chargers? (UFS 5) a. Debt ratio and price-to-earnings ratio. b. Cash flow adequacy and fixed charge coverage. c. Days payable outstanding and gross profit margin. d. Cash interest coverage and average collection period.

b. Cash flow adequacy and fixed charge coverage.

How is a common-size income statement prepared?(I) a. Each income statement item is expressed as a percentage of total assets. b. Each income statement item is expressed as a percentage of net sales. c. Each income statement item is expressed as a percentage of net income. d. Each income statement item is expressed as a percentage of cash flow.

b. Each income statement item is expressed as a percentage of net sales.

Which ratios are concerned with whether the company is properly managing its working capital and cash flows? (UFS 5) a. Profitability b. Liquidity c. Solvency d. Efficiency

b. Liquidity

How is earning per common share calculated?(I) a. Operating profit divided by the average number of common st... b. Net profit minus preferred dividends divided by the average num... shares outstanding for the year. c. Net profit divided by the average number of common and pre... outstandin. d. Operating profit divided by the average number of repurchase...

b. Net profit minus preferred dividends divided by the average num... shares outstanding for the year.

The following item would be classified as an FINANCING activity on the sta...(I) a. Payments for inventory. b. Payment of dividends. c. Acquisition of land. d. Sale of goods.

b. Payment of dividends.

Selling and administrative expenses include which of the following income...(I) a. Salaries, insurance, interest. b. Salaries, rent expense, advertising. c. Rent, interest, cost of goods. d. Advertising, research & development, amortization.

b. Salaries, rent expense, advertising.

Which financial statement provides information about operating,fi... activities? a. Statement of financial position. b. Statement of cash flows. c. Statement of stockholder's equity. d. Income statement.

b. Statement of cash flows.

All of the following are true of common-size analysis EXCEPT: (UFS 5) a. This analyisis permits comparisons between two or more corporations of differing sizes. b. This analysis makes it harder to compare performance to prior years. c. Balance sheet items are expressed as a percentage of total assets. d. This analysis makes it easier to analyze a firm's performance within the current year as well as between years.

b. This analysis makes it harder to compare performance to prior years.

In a common-size analysis all of the items on the balance sheet should be expressed as a percentage of: (UFS 5) a. Total Liabilities b. Total Assets c. Total Stockholder's Equity d. Current Assets

b. Total Assets

Which of the following marketable securities are reported at fair value...?(I) a. Held to maturity and trading securities. b. Trading securities and securities available for sale. c. Held to maturity and securities available for sale. d. Corporate bonds and convertible debt.

b. Trading securities and securities available for sale.

A _______ is how a business tries to compete against similar businesses in... differentiate itself from its competitors and create a sustainable competitive advantage...(I) a. business model b. business strategy c. mission statement d. business plan

b. business strategy

A business's strategy is designed to create the firm's sustaina... Which of the following is correct with respect to business stra...? a. business strategy and business model are the same... b. business strategy and business model are not the same... c. business strategy is not an important part of managi... d. none of the above is correct.

b. business strategy and business model are not the same...

Which of the following is NOT a function of a management accounting system? (MA 1) a. strategic development b. financial reporting c. control d. product costing

b. financial reporting

Which of the following describes the condition where buyers and... what is sold and at what price.(I) a. controlled market b. free market economy c. regulated market d. all are correct

b. free market economy

A key element of any organization's strategy is identifying: (MA 1) a. its potential shareholders. b. its target customers. c. competitor's products. d. employee needs.

b. its target customers.

An example of a direct cost for a service provided by an accounting firm, such as a tax return, would be: a. depreciation on computer system. b. labor of staff accountant who prepared the return. c. labort of file clerk who filed copies of return. d. rent on the office.

b. labor of staff accountant who prepared the return.

For most products, the majority of the product's total life costs are incurred during the: a. research, development, and engineering cycle. b. manufacturing cycle. c. post-sale service and disposal cycle. d. operating cycle.

b. manufacturing cycle.

One goal of ______ is to design costs out of products in the research, development, and engineering stage. a. cost-plus pricing b. target costing c. Kaizen costing d. traditional costing

b. target costing

A cost, the total of which depends on the number of units produced is referred to as a: a. fixed cost. b. variable cost. c. direct cost. d. indirect cost.

b. variable cost.

Rupe Company... A single predetermined manufacturing overhead rate based on total plant direct labor hours is: a. $ 4 per direct labor hour. b. $10 per direct labor hour. c. $20 per direct labor hour. d. $40 per direct labor hour.

c. $20 per direct labor hour.

After conducting a market research study, Steward Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $120. The annual target sales volume for interior doors is 20,000. Stewart has a 20% expected return on sales target. What is the target profit margin? a. $384,000 b. $600,000 c. $480,000 d. $360,000 (Target Price*Units)*Expected Return on Sales Target. (120*20,000)*0.20 = 480,000

c. $480,000

Smithson Company financial statements for 2015. (UFS 5) What is the Gross Profit Margin? a. 61.29% b. 38.71% c. 41.94% d. 20.97% Gross Profit Margin = (Gross Profit)/(Sales)

c. 41.94%

Sanchez & Ryan, Inc. sells a single porduct. This year 20,000 units were sold... $130,000 of sales revenue, $60,000 of variable costs, and $17,500 of fixed costs. Using the data in question ( ), how many units must Sanchez sell... for the year? (MA 3) a. 2,000 units. b. 3,000 units. c. 5,000 units. d. 10,000 units.

c. 5,000 units

Orbach Company Income Statement In a common-size analysis, what percentage would you show for Cost of Goods sold? (UFS 5) a. -15.6% b. 27.5% c. 72.5% d. 74.3%

c. 72.5%

Which of the following items should alert the analyst to the potential for ma... analyzing accounts receivable and the allowance for doubtful accounts?(I) a. Sales, accounts receivable and the allowance for doubtful accounts... approximately the same rate. b. A company lowers its credit standards and also increases the ba... for doubtful accounts. c. Accounts receivable is growing at a large rate and the allowance... d. An analysis of the "Valuation and Qualifying Accounts" schedule... the amounts recorded for bad debt expense are close in amount... year.

c. Accounts receivable is growing at a large rate and the allowance...

Which of the following is an external source of liquidity?(I) a. Sales of services. b. Repurchases of stock. c. Borrowing. d. Sales of products.

c. Borrowing.

What is implied if the inventory account has increased?(I) a. Cash flow from financing activities has decreased relatively. b. Cash flow from operating activities has increased relatively. c. Cash flow from operating activities has decreased relatively. d. Cash flow from financing activities has increased relatively.

c. Cash flow from operating activities has decreased relatively.

Which of the items below would be included under "Other income and...(I) a. Salaries, interest expense, equity losses. b. Research and development, dividend income, interest expense. c. Dividen revenue, gains from sale of assets, interest income. d. Advertising, cost of good sold, selling and administrative expense.

c. Dividen revenue, gains from sale of assets, interest income.

Which of the following is false?(I) a. Common-size balance sheets allow for comparison of firms with diff... assets by introducinga a commmon denominator. b. The common-size balance sheet reveals the composition of assets... categories. c. Each item on a common-size balance sheet is expressed as a percent... d. The common-size balance sheet reveals the capital and the debt...

c. Each item on a common-size balance sheet is expressed as a percent...

Which of the following statements is true?(I) a. The straight-line method of depreciation allocates a decreasing amount of depreciation expense each year. b. Straight-line depreciation is the least used method for financial reporting purposes. c. Fixed assests are reported at historical cost less accumulated depreciation on the balance sheet. d. The total amount of depreciation ove the asset's life is larger when using an accelarated method of depreication.

c. Fixed assests are reported at historical cost less accumulated depreciation on the balance sheet.

Which financial statement presents the results of operations?(I) a. Balance sheet. b. Statement of financial position. c. Income statement. d. Statement of cash flows.

c. Income statement.

In the Fantasia case, Roberto Ponti violated one of the first principals that should by considered when creating the capital structure of a business. The principle he violated was which of the following: a. Never trust your customers to do what they say they will do. b. A company must always prepare an operating budget. c. Long-term capital needs should not be financed with short-term financing. d. Never allow the current ratio to fall below 10 to 1.

c. Long-term capital needs should not be financed with short-term financing.

Peyton Company and Kaisen Company: Ratio Which statement is true regaring Percent Uncollectible? (UFS 5) a. Both companies performed worse in 2012 than in 2011. b. Kaise performed worse in 2012 than in 2011. c. Peyton performed better than Kaisen both years. d. Peyton performed worse in 2012 than Kaisen.

c. Peyton performed better than Kaisen both years.

In our discussion of the Fantasia case, we identified several major issues or problems with the company. Which of the following was NOT one of the problems that we identified? a. Lack of sufficient financial planning with respect to the expansion. b. Poor adminastration of the accounts receivable collection process. c. Ponti's lack of manufacturing expertise demonstrated by the need for expanded manufacturing capacity. d. Greed on the part of the majority shareholders by requiring the continuation of the annual dividend payments.

c. Ponti's lack of manufacturing expertise demonstrated by the need for expanded manufacturing capacity.

The following item would be classified as an INVESTING activity on the sta...(I) a. Proceeds from borrowing. b. Sale of goods. c. Proceeds from sale of property. d. Payment to lenders.

c. Proceeds from sale of property.

Skate Magic makes and sells different products. There is a contraint in the company's manufacturing process. How can the Vice-president of sales at Skate Magic encourage her salespeople to promote the more profitable model and thereby maximize Skate Magic's profits? a. Put all sales persons on salary. b. Provide higher sales commissions for higher priced items. c. Provide higher sales commissions for items with the greatest contribution margin per constrained resource. d. Provide higher sales commissions for higher priced items and items with the greatest contribution margin per constrained resource.

c. Provide higher sales commissions for items with the greatest contribution margin per constrained resource.

Which of the following items would be a way to manipulate the cash flow amount on the statement of cash flows?(I) a. Adding depreciation back to net income to determine cash flow... b. Including interest expense and tax expense in the calculation of... activities. c. Recording an item that should be recorded as an operation act... d. The cash flow statement cannot be manipulated.

c. Recording an item that should be recorded as an operation act...

Which stockholders' equity account represents the sum of every dollar a company... since its inception, less any payments made to shareholders in the form of div...(I) a. Treasury stock. b. Accumulated other comprehensive income. c. Retained earnings. d. Preferred stock.

c. Retained earnings.

Which ratios measure how much profit was generated compared to the invest... into creating the profits? (UFS 5) a. Liquidity Ratios b. Debt Financing Ratios c. Return Ratios d. Margin Ratios

c. Return Ratios

In the Salem Telephone case, Salem Data Services had to be a separate company from Salem Telephone Company for which of the following reasons? a. Mr. Flores had promised the Salem Board of Directors that the two firms would be separate entitles. b. The two companies had different ownership. c. Salem Telephone was a regulated utility company and did not want Salem Data Services encumbered by its regulatory rules. d. None of the above is correct.

c. Salem Telephone was a regulated utility company and did not want Salem Data Services encumbered by its regulatory rules.

The generally accepted accounting principles which assures financial statement... that that costs recorded for an accounting period are related to the revenue ge... the period is which of the following?(I) a. The Revenue Recognition Principle b. The Accrual Basis of Accounting c. The Matching Principle d. Consistency Principle

c. The Matching Principle

Which of the following is NOT a condition that must be met for an item to be rec... revenue?(I) a. Revenues must be earned. b. The amount of the revenue must be measurable. c. The revenue must be received in cash. d. The cost of generating the revenue can be determined.

c. The revenue must be received in cash.

Which of the following statements is FALSE regarding working capital and liquidity? (UFS 5) a. We want to minimize the amount of investement we have in inventory. b. We want to maximize the time we take to pay back out accounts payable. c. We want to maximize the amount of time we take to collect our receivables. d. We want to minimize the amount of cash we need on hand for day-to-day operations.

c. We want to maximize the amount of time we take to collect our receivables.

The person MOST likely to use ONLY financial accounting information is a: (MA 1) a. factory shift supervisor. b. vice president of operations. c. current shareholder. d. department manager.

c. current shareholder.

Target costing is: a. engineering-driven. b. value-driven. c. customer-driven. d. market-driven.

c. customer-driven.

Because the business world is constantly changing, a business has to... gain a sustainable advantage.(I) a. be consistent b. follow market trends c. innovate d. remain profitable

c. innovate

Relevent costs of a make-or-buy decision for a part include all of the following EXCEPT: (MA 3) a. fixed salaries that will not be incurred if the part is outsourced. b. current direct materials costs of the part. c. special machinery for the part that has no resale value. d. material-handling costs that can be eliminated if the part is outsourced.

c. special machinery for the part that has no resale value.

Total-life-cycle costing is the name given to: a. a method of cost planning to reduce manufacturing costs to targeted levels. b. the process of examining each component of a product to detemine whether its cost can be reduced. c. the process of managing all costs along the value chain. d. a system that focuses on reducing costs during the manufacturing cycle.

c. the process of managing all costs along the value chain.

Contribution margin equals revenues minus: a. total product costs. b. total period costs. c. total variable costs. d. total fixed costs.

c. total variable costs.

Dennis' TV currently sells small televisions for $180. It has costs of $140. A competitor is bringing a new television to market that will sell for $150. Management believes it must lower the price to $150 to compete in the market for small televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Dennis' sales are currently 100,000 per year. What is the change in profit margin if Marketing is correct and only the sales price is changed? a. $1,100,000 b. $300,000 c. $(1,100,000) d. $(2,900,000)

d. $(2,900,000)

ABC Company purchases five products for sale in the order and at the costs shown: Unit : Cost per Unit 1 : $10 2 : $12 3 : $15 4 : $18 5 : $13 Assume ABC sells two items and uses the LIFO method of inventory valuation. What amount would appear for cost of good sold on the income statement?(I) a. $37 b. $41 c. $22 d. $31

d. $31

Ocean Technical Services... rate of $70 per direct labor hour... direct materials $50,000; direct labor 900 direct labor hours @ $30 per hour; and a markup rate of 25%. Manufacturing overhead cost estimates for this special order total: a. $7,000. b. $36,000. c. $45,990. d. $63,000.

d. $63,000.

Smithson Company financial statements for 2015. (UFS 5) What is the Price/Earnings Ratio? a. 0.58 times b. 1.67 times c. 1.04 times d. 1.73 times

d. 1.73 times

Smithson Company financial statements for 2015. (UFS 5) What is the Days' Sale in Inventory? a. 9.61 days b. 9.13 days c. 8.95 days d. 10.14 days Days' Sales in Inventory = (EOY Inventory)/(Cost of Goods/365)

d. 10.14 days

Orbach Company Income Statement In a common-size analysis, what percentage would you show for Net... for 2010? a. 17.2% b. 16.8% c. 10.0% d. 9.4%

d. 9.4%

What is an unqualified audit report?(I) a. A report stating that the auditors are no qualified to repor... b. A report that states the financial statements are in violation... c. A report that states that departures from GAAP exist in the... statements. d. A report that states the financial statements are presen... material respects, and are in conformity with GAAP.

d. A report that states the financial statements are presen... material respects, and are in conformity with GAAP.

A local unit is evaluated as a profit center but the corporate office controls many facets of the operation. If local-unit performance is poor. It may reflect: a. poor corporate decisions. b. poor local decisions. c. conditions that no one can control. d. All of the above are correct.

d. All of the above are correct.

Constraints from the theory of constratins may include: a. the availability of direct materials in manufacturing. b. linear square feet of display space for a retailer. c. direct labor in the service industry. d. All of the above are correct.

d. All of the above are correct.

The following is a variation of the Accounting Equation: a. Assets + Liabilities = Stockholder's Equity. b. Revenues - Expenses = Net Income. c. Sales - Costs = Net Profit. d. Assets - Liabilities = Stockholders' Equity.

d. Assets - Liabilities = Stockholders' Equity.

When analyzing an income statement, the type of analysis in which you turn each line into a percentage of net sales is called: (UFS 5) a. Market analysis b. Fundamental analysis c. Flux capacitor analysis d. Common-size analysis

d. Common-size analysis

Which of the following financial metrics would management want to minimize? (UFS 5) a. Gross Profit Margin b. Return on Assets c. Receivable Turnonver d. Days' Receivables Outstanding

d. Days' Receivables Outstanding

Which of the following would increase cash from operating activities?(I) a. Increasing accounts receivable. b. Increasing inventories. c. Decreasing accounts payable. d. Decreasing accounts receivables.

d. Decreasing accounts receivables.

Which of the following is true regarding financial analysis? (UFS 5) a. There is ONE important ratio that will indicate the overall financial health of an organization. b. There is an acceptable range into which ratios must fall for a company to be considered financially healthy. c. There is always a standard rule or formula for calculating each specific metric (ratio). d. None of the above is correct.

d. None of the above is correct.

Peyton Company and Kaisen Company: Ratio Which statement is true regarding Days' Receivables Outstanding (O/S)? (UFS 5) a. Both companies performed worse in 2012 that in 2011. b. Kaisen performed worse in 2012 that in 2011. c. Peyton performed better than Kaisen both years. d. Peyton performed worse in 2012 than Kaisen.

d. Peyton performed worse in 2012 than Kaisen.

Which of the following accounts would be classified as non-current asse... sheet?(I) a. Accounts receivable, inventory, cash equivalents. b. Marketable securities, accounts payable, property, plant and e... c. Prepaid expenses, goodwill, long-term investments. d. Property, plant and equipment, long-term investments, goodwill...

d. Property, plant and equipment, long-term investments, goodwill...

How are revenues and expenses recognized under the accrual basis of accou...?(I) a. Revenues are recognized when cash when cash is received and expenses are rec... cash is paid. b. Revenues and expenses are recognized equally over a twelve month... c. Revenues and expenses are recognized based on the choices of ma... d. Revenues are recognized in the accounting period when the sale is... are recognized in the period in which they relate to the sale of the...

d. Revenues are recognized in the accounting period when the sale is... are recognized in the period in which they relate to the sale of the...

Why are gains and losses from asset sales removed from net cash flows from operating activities?(I) a. Selling assets is a noncash item. b. Gains and losses from asset sales are a financing act... c. Gains and losses are not removed from net income... from operating activities. d. The entire proceeds from sales of long-lived assets...

d. The entire proceeds from sales of long-lived assets...

All of the following are reasons that the statement of cash flows is useful to the...except: (I) a. The statement of cash flows shows how cash is generated during an... b. A positive net income figure on the income statement is ultimately... c. The statement of cash flows shows the adjustments made to net income... calculate cash flow from operations; those should be examined.... d. The statment of cash flows is the only financial statement that can... manipulate.

d. The statment of cash flows is the only financial statement that can... manipulate.

What does the Net Profit Margin Ratio (percentage) measure? (UFS 5) a. How much our company is financed through debt. b. How easily we can pay back our long-term debt. c. How quickly we can turn investments in working capital into cash. d. What percentage of sales was retained after taking out all expenses.

d. What percentage of sales was retained after taking out all expenses.

Fair Engineering Company... 100,000 units. DM $80,000 DL 20,000 Vscosts 50,000 Fscosts 40,000 Total Costs $190,000 ... then its monthly operating incom will:

d. decrease by $2,000.

Costs are relevant to a particular decision if they: (MA 3) a. are variable costs. b. are fixed costs. c. remain unchanged across the alternatives being considered. d. differ across, the decision alternatives being considered.

d. differ across, the decision alternatives being considered.

The predetermined overhead rate is using _____ overhead costs. a. actual b. allocated c. direct d. estimated

d. estimated

In a manufacturing enviroment, an indirect cost such as ______ would usually be allocated to a cost object. a. sales department salaries b. raw materials c. labor of employees who operate manufacturing equiment d. labor of manufacturing supervisor

d. labor of manufacturing supervisor

Depreciation on computers at the corporate headquarters is best characterized as: a. direct costs. b. fixed manufacturing overhead. c. variable overhead. d. period costs.

d. period costs.

Target costing differs from traditional costing in all of the following ways EXCEPT: a. target costing collects market research continually throughout the target costing process rather than as a single event. b. target costing uses the total-life-cycle concept to minimize ownership costs. c. traditional costing spends less time on product specification and design. d. traditional cositing uses cross-functional teams to guide the process.

d. traditional cositing uses cross-functional teams to guide the process.