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
