Accounting Final

Should be deducted from net income in determining net cash flows from operating activities using the indirect method?

A decrease in accounts payable

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The journal entry for the transfer of costs from work in process to finished goods is

Finished Goods 540,000 Work in Process 540,000

Goods that are partially completed by a manufacturer are

Work in process inventory

Depreciation on factory equipment would be reported on the statement of cash flows prepared by the indirect method in

The operating activities section

Costs that vary in total in direct proportion to changes in an activity level are called ______ costs.

Variable

Example of mixed cost

rental costs of $10,000 per month plus $0.30 per machine hour of use

Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The journal entry for the materials requisitioned by the production department is

Work in Process 156,000 Materials 156,000

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use (indirect labor). In addition, factory overhead charged to production was $32,000. The journal entry for the direct labor costs is

Work in Process 150,000 Wages Payable 150,000

A disadvantage of the corporate form of business entity is

Being subject to more governmental regulations

Which of the following is the appropriate entry to journalize the declaration of cash dividends?

Cash Dividends Cash Dividends Payable

On the statement of cash flows, the "Cash flows from (used for) financing activities" section would include

Cash received from issuing common stock

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had production costs of $375,000. The journal entry for the transfer of costs from finished goods to cost of goods sold is

Cost of Goods Sold 375,000 Finished Goods 375,000

Example of direct labor cost for a cell phone manufacturer?

Cost of assembly worker wages

Which of the following is an example of direct materials cost for an automobile manufacturer?

Cost of interior upholstery

The journal entry a company uses for the issuance of bonds when the contract rate and the market rate are the same includes a

Debit to Cash and a credit to Bonds Payable

The date on which a cash dividend becomes a binding legal obligation is on the

Declaration day

Which of the following is part of factory overhead cost?

Depreciation of factory equipment and machines

An advantage of the proprietorship form of business organization is

Ease of formation

A 10-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows as a(n)

Financing activity

Costs that remain constant in total dollar amount as the level of activity changes are called ________ costs.

Fixed

The three most common cost behavior classifications are:

Fixed costs, variable costs, and mixed costs

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows as a(n)

Investing activity

If the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be

Less than $500,000

The shares currently held by stockholders are the

Outstanding shares

Most associated with financial accounting reports?

Prepared in accordance with GAAP

Example of a cost that remains the same in total as the number of units produced changes

Salary of a factory supervisor