Managerial accounting chapter 13-15

If a gain of $11,000 is realized in selling (for cash) office equipment having a book value of $55,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

$66,000

Based on the following data for the current year, what is the accounts receivable turnover? Net sales on account during year $700,000 Cost of merchandise sold during year 270,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000

17.5

Based on the following data for the current year, what is the inventory turnover?Net sales on account during year $700,000 Cost of merchandise sold during year 270,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000

2.7

Which of the following is the principle reason for preparing managerial accounting reports?

Usefulness to management

Which of the following is most associated with managerial accounting?

May rely on estimates and forecasts

What is the primary criterion for the preparation of managerial accounting reports?

Meet the manager needs

Which of the following are basic phases of the management process?

Planning and controlling

Which of the following is false in regards to direct materials for an auto manufacturer?

Small plastic clips to hold on door panels, that become part of the auto, must be accounted for as direct materials.

Which one of the following below should be added to net income in calculating net cash flow from operating activities using the indirect method?

an increase in accrued liabilities

In horizontal analysis, each item is expressed as a percentage of the

base year figure.

Which of the following can be found on the statement of cash flows?

cash flows from operating activities

On the statement of cash flows, a $7,500 gain on the sale of fixed assets would be

deducted from net income in converting the net income reported on the income statement to cash flows from operating activities

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as:

direct labor cost

Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?

discarding an asset that had been fully depreciated

A product cost is:

expensed in the period the product is sold

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

gain on sale of land

What type of analysis is indicated by the following? Current assets 2011 $ 430,000 2010 $ 500,000 Amount $70,000* Percent 14%* Fixed assets 2011 1,740,000 2010 1,500,000 amount 240,000 percent 16%

horizontal analysis

Which of the following is not included in the computation of the quick ratio?

inventory

Which of the following is not a factory overhead cost?

materials used directly in the manufacturing process of the product

Period costs include:

operating costs that are shown on the income statement in the period in which they are incurred

Which of the following types of transactions would be reported as a cash flow from investing activity on the statement of cash flows?

purchase of noncurrent assets

Which of the following ratios provides a solvency measure that shows the margin of safety of bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis?

ratio of fixed assets to long-term liabilities

The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to as

solvency and profitability

Cash paid to purchase long-term investments would be reported in the statement of cash flows in

the cash flows from investing activities section

The percent of fixed assets to total assets is an example of

vertical analysis

Which of the following costs are referred to as conversion costs?

Direct labor cost and factory overhead cost

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

a decrease in accounts receivable

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in

a separate schedule