Final Exam (ACCT)

investment center (B)

Pillsbury produces cookies, pizza, bread, and other food items. Pillsbury was acquired by General Mills in 2001 for $10.4 billion. Pillsbury is likely to be classified as a(n): A. cost center B. investment center C. profit center D. revenue center

the payment of cash dividends would be presented in the financing activities section as a cash payment under both methods (B)

a company pays cash dividends on preferred stock. where would this transaction appear if the company prepares the statement of cash flows using the indirect method or the direct method? A. the payment of cash dividends would be presented in the investing activities section as a cash payment under both methods B. the payment of cash dividends would be presented in the financing activities section as a cash payment under both methods C. the payment of cash dividends would be presented in the operating activities section as a reduction in net income under the indirect method and as a cash payment under the direct method D. the payment of cash dividends would be presented in the non cash investing and financing activities section under both methods

the purchase of equipment would be presented in the investing activities section as a cash payment under both methods (D)

a company purchases equipment for use in its business activities. where would this transaction appear if the company prepares the statement of cash flows using the indirect method or the direct method? A. the purchase of equipment would be presented in the non cash investing and financing activities section under both methods B. the purchase of equipment would be presented in the financing activities section as a cash payment under both methods C. the purchase of equipment would be presented in the operating activities section as a reduction in net income under the indirect method and as a cash payment under the direct method D. the purchase of equipment would be presented in the investing activities section as a cash payment under both methods

the purchase of land would be presented in the non cash investing and financing activities section under both methods (C)

a company purchases land using its common stock. where would this transaction appear if the company prepares the statement of cash flows using the indirect method or the direct method? A. the purchase of land would be presented in the financing activities section as a cash payment under both methods B. the purchase of land would be presented in the investing activities section as a cash payment under both methods C. the purchase of land would be presented in the non cash investing and financing activities section under both methods D. the purchase of land would be presented in the operating activities section as a reduction in net income under the indirect method and as a cash payment under the direct method

a loss from the sale of equipment will be added to net income in the operating activities section (B)

a company uses the indirect method to prepare the statement of cash flows. how will a loss from the sale of equipment be presented on the statement? A. a loss from the sale of equipment will be an addition in the financing activities section B. a loss from the sale of equipment will be added to net income in the operating activities section C. a loss from the sale of equipment will be deducted from net income in the operating activities section D. a loss from the sale of equipment will be an addition in the investing activities section

depreciation expense will be added to net income in the operating activities section (C)

a company uses the indirect method to prepare the statement of cash flows. how will depreciation be presented on the statement? A. depreciation expense will be added to net income in the financing activities section B. depreciation expense will be subtracted from net income in the operating section C. depreciation expense will be added to net income in the operating activities section D. depreciation expense will be added to net income in the investing activities section

the adjustment will be for the increase or decrease in accounts payable for the period and will adjust net income in the operating activities section (A)

a company uses the indirect method to prepare the statement of cash flows. how will the adjustment to reflect the amount of cash payments to suppliers be presented on the statement? A. the adjustment will be for the increase or decrease in accounts payable for the period and will adjust net income in the operating activities section B. the adjustment will be for the increase or decrease in inventory for the period and will adjust net income in the operating activities section C. the adjustment will be for the increase or decrease in accrued expenses for the period and will adjust net income in the operating activities section D. the adjustment will be for the increase or decrease in accounts receivable for the period and will adjust net income in the operating activities section

a decrease in accounts receivable would be added to net income (A)

a company uses the indirect method to prepare the statement of cash flows. which of the following items would be added to net income in determining the net cash flow from operating activities? A. a decrease in accounts receivable would be added to net income B. an increase in inventory would be added to net income C. a decrease in accounts payable would be added to net income D. an increase in preferred dividends payable would be added to net income

operating (A)

a loss of $35,000 from the sale of equipment would be included in which of the activities sections of the statement of cash flows? A. operating B. investing C. financing D. would not be on the statement of cash flows

the inflow and outflow of cash during the time period (C)

a statement of cash flows is generated to show: A. the revenues the company has earned B. the expenses the company has incurred during the time period C. the inflow and outflow of cash during the time period D. how profits were generated

recording actual results (D)

budgets are used for all of the following EXCEPT: A. planning for the future B. controlling operations C. directing operations D. recording actual results

learning and growth (D)

employee satisfaction would be an example of measuring which perspective? A. financial B. customer C. internal business D. learning and growth

variances which are greater than a certain dollar amount or percentage (A)

management by exception would dictate that the manager investigate which of the following variances? A. variances which are greater than a certain dollar amount or percentage B. variances which are less than a certain dollar amount or percentage C. all unfavorable variances D. all favorable and unfavorable variances

unit sales + desired end inventory - beginning inventory (A)

on the production budget, the number of units to be produced is computed as: A. unit sales + desired end inventory - beginning inventory B. unit sales + desired end inventory + beginning inventory C. unit sales - desired end inventory - beginning inventory D. unit sales - desired end inventory + beginning inventory

price variance (B)

the best label for the formula (AP - BP)AQ is the: A. efficiency variance B. price variance C. total flexible budget variance D. spending variance *A = actual *B = budgeted *P = price *Q = quantity

efficiency variance (A)

the best label for the formula (AQ - BQ)BP is the: A. efficiency variance B. price variance C. total flexible budget variance D. spending variance *A = actual *B = budgeted *P = price *Q = quantity

price variance (B)

the best label for the formula [(AP)(AQ) - (BP)(AQ)] is the: A. efficiency variance B. price variance C. total flexible budget variance D. spending variance *A = actual *B = budgeted *P = price *Q = quantity

profit center (C)

the convenience store owned by a national chain is likely to be classified as a(n): A. cost center B. investment center C. profit center D. revenue center

internal business (C)

the number of defects found during the manufacturing process would be an example of measuring which perspective? A. financial B. customer C. internal business D. learning and growth

customer (B)

the number of on time deliveries would be an example of measuring which perspective? A. financial B. customer C. internal business D. learning and growth

cash budget (B)

which of the following budgets is part of the financial budgets? A. sales budget B. cash budget C. direct materials budget D. operating expense budget

motivating unit managers (B)

which of the following goals of a performance evaluation system is accomplished when bonuses are provided to subunit managers who achieve performance targets? A. benchmarking B. motivating unit managers C. promoting goal congruence D. communicating expectations

communicating company's expectations (B)

which of the following goals of a performance evaluation system is accomplished when subunit managers are provided with performance targets? A. benchmarking B. communicating company's expectations C. promoting goal congruence D. providing feedback

the statement of cash flows is required by generally accepted accounting principles (B)

which of the following is TRUE about a statement of cash flows? A. the statement of cash flows is prepared at the option of management B. the statement of cash flows is required by generally accepted accounting principles C. the statement of cash flows may be combined with the income statement D. the statement of cash flows does not have to be completed if an income statement is prepared

unit managers may not understand the big picture of the company (B)

which of the following is a disadvantage of decentralization? A. management does not have time to concentrate on long term strategic planning B. unit managers may not understand the big picture of the company C. unit managers have decreased motivation and retention D. managers receive training and experience to allow advancement in the organization

operating, investing, financing (D)

which of the following is the correct order of the sections on a statement of cash flows? A. operating, financing, investing B. financing, investing, operating C. investing, operating, financing D. operating, investing, financing

financial perspective (A)

return on investment and revenue growth would be examples of: A. financial perspective B. customer perspective C. internal business perspective D. learning and growth perspective

setting long term goals that extend one year into the future (B)

strategic planning involves: A. setting short term goals that extend one year into the future B. setting long term goals that extend one year into the future C. setting goals for next month D. executing directives from the board of directors