Accounting Mini Exam 1
If we have $80,000 in assets and $25,000 in liabilities, what is Stockholders' Equity?
$55,000
You purchase raw materials from a supplier on credit. You now have an ___________ with the supplier.
Accounts Payable
You perform a service for a customer and bill them for your service. You now have an __________ with the customer.
Accounts Receivable
Which of the following is part of Manufacturing Overhead? All of the following are MOH costs Indirect Materials Indirect Labor Factory rent, depreciation, insurance, etc
All of the following are MOH costs
Supplies
Assets
Accounting Equation
Assets= Liabilities + SE
Ending Work in Process Inventory
Beginning WIP + Manufacturing Costs - COGM
Notes Payable
Liability
Which one of the following is not a cost element in manufacturing a product? Direct materials Manufacturing overhead Direct labor Office salaries
Office salaries
Dividends
SE
Internal users include human resources managers.
TRUE
Buildings
Assets
What is the accounting equation?
Assets = Liabilities + Stockholders' Equity
Is the company able to pay its debts?
Creditor
Which of the following is the correct formula for finding Cost of Goods Manufactured?
Direct materials Direct labor MOH Total Manufacturing Costs Total Cost of Work In Process Less, WIP, BB
GAAP stands for:
Generally Accepted Accounting Principles
The steps in the accounting process are:
Identify, Record, Communicate
Is the company a good investment?
Investor
Income Statements
Revenues - Expenses = Net Income
Cash, Accounts Receivable, Inventory and Equipment are all examples of assets.
TRUE
Indirect Materials are raw materials that either do not become part of the finished product or are too costly to track.
TRUE
Liabilities are the creditors' claims against a business's assets.
TRUE
The accounting process includes the bookkeeping function.
TRUE
Received cash from customer in payment on account.
increase and decrease assets
Which of the following is not a manufacturing cost category? Cost of goods sold Direct labor Manufacturing overhead Direct materials
Cost of goods sold
Beginning Work in Process Inventory
Costs of Goods Sold + Ending WIP - Costs of Purchases
Managerial Accounting is primarily for external users, provides less detail, and is prepared quarterly or annually.
FALSE
Managerial accounting provides reports to help investors and creditors evaluate a company.
FALSE
The three steps in the accounting process are identification, recording, and examination.
FALSE
Cost of Goods Available for Sale is a combination of: Finished Goods, BB, and Cost of Goods Sold Cost of Goods Sold and Cost of Goods Manufactured Finished Goods, EB, and Cost of Goods Manufactured Finished Goods, BB, and Cost of Goods Manufactured
Finished Goods, BB and Cost of Goods Manufactured
Is the company complying with tax laws?
Internal Revenue Service
Which one of the following is not considered a raw material cost? Lumber used to build tables Rivets for the wings of a new commercial jet aircraft Partially completed motor engines for a motorcycle factory Bolts used in manufacturing the compressor of an engine
Partially completed motor engines for a motorcycle factory
Is the company operating within prescribed guidelines?
Regulatory Agency
Which of the following is not a Product/Manufacturing Cost? Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Costs
Selling and Administrative Costs
Retained Earnings Statement
Start with 0 + Net Income - Dividends = Retained Earnings
The two most common types of external users are investors and creditors.
TRUE
Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction? The purchase of a new computer. The appointment of a new CPA firm to perform an audit. Payment of income taxes. The sale of store equipment.
The appointment of a new CPA firm to perform an audit
Owners enjoy limited liability in a: proprietorship. corporation. partnership. sole proprietorship.
corporation
Manufacturing costs include: direct materials, direct labor, and manufacturing overhead. direct materials and manufacturing overhead only. direct labor and manufacturing overhead only. direct materials and direct labor only.
direct materials, direct labor, and manufacturing overhead.
The accounting process is correctly sequenced: identification, recording, communication. identification, communication, recording. communication, recording, identification. recording, communication, identification.
identification, recording, communication.
Obtained a loan from the bank.
increase assets and increase liability
Billed customers for services rendered.
increase assets and increase stockholders equity
Received cash for services provided
increase assets and increase stockholders' equity.
Purchased office supplies on credit.
increase assets and liabilities
Purchased office equipment on credit
increases assets and increase liability
A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n): direct material. miscellaneous expense. period cost. indirect material.
indirect material.
Salaries and Wages Payable
liability
Managerial accounting is also called analytical accounting. inside reporting. management accounting. controlling.
management accounting.
Amounts owed to bank
notes payable
A proprietorship is a business: organized as a separate legal entity under state corporation law. owned by one person. owned by two or more persons. owned by a governmental agency.
owned by one person
Management accountants would not: prepare reports primarily for external users. be concerned with the impact of cost and volume on profits. determine cost behavior. assist in budget planning.
prepare reports primarily for external users.
Party to whom money is owed
creditor
Paid dividends.
decrease assets and decrease stockholders' equity
Paid for office equipment purchased in transaction 2.
decreases assets and decrease liability
Paid employees' salaries.
decreases assets and decrease stockholders equity
Paid telephone bill for the month.
decreases assets and decrease stockholders equity
How the Turn Tables Inc has revenue of $100,000 and expenses of $125,000. What is their net income/loss?
$25,000 Net Loss
Wildcat Inc has the following costs: DM Used of $25, DL of $5, MOH of $20, WIP BB of $30. What is Total Manuf Cost? $80 $20 $50 $30
$50
Amounts due from customers:
accounts receivable
Managerial accounting is applicable to service entities. manufacturing entities. not-for-profit entities. all of these.
all of these.
Amounts owed to suppliers for goods and services purchased
accounts payable
Dividends directly increase Retained Earnings.
FALSE
Accountants refer to an economic event as a: purchase. transaction. change in ownership. sale.
Transaction