managerial acc review

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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

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

base year figure

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

cash flows from investing activities section

what can be found on the statement of cash flows?

cash flows from operating activities

a product cost is..

expensed in the period the product is sold

borrowed $43,000 from regional bank, issuing a 5 year, 8% note for that amount.

financing/$43,000

Issued $500,000 of 20-year, 10% bonds payable at 99.

financing/495,000

issued bonds payable for cash

financing/cash inflow

declared and paid a cash dividend

financing/cash outflow

purchased treasury stock for cash

financing/cash outflow

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

the percent of increases/decreases in related items in comparative financial statements is called what...

horizontal analysis

utilities on factory building...

indirect

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

inventory

received $120,000 from sale of land costing $70,000

investing/$120,000

acquired equip for $64,000 cash

investing/$64,000

purchased investments for $75,000

investing/$75,000

which of the following is most associated with managerial accounting?

may rely on estimates and forecasts

what is the primary criterion for the prep of managerial accounting reports?

meet the managers needs

office equip depreciation...

neither

recognized depreciation for the year, $37,000

operating/$37,000

received cash for sales

operating/cash inflow

received interest on a long term bond investment

operating/cash inflow

paid an account payable

operating/cash outflow

paid the weekly payroll

operating/cash outflow

advertising expense...

period

depreciation on store equip...

period

salespersons' commissions...

period

depreciation on factory machinery...

product

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 concurrent 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

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

small plastic clips to hold on door panels must be dm

the ability of a business to pay its debts and earn income is...

solvency and profitability

under which of the following cases may a percentage change be computed?

the trend of the amounts is decreasing but all amounts are positive

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 hadn't been fully depreciated

declared $35,000 cash dividends on stock. $5,000 dividends were payable at the beginning of the year, and $6,000 were payable at the end of the year.

financing/$34,000

Issued 85,000 shares of $10 par common stock for $25 a share, receiving cash.

financing/2,125,000

factory equip depreciation...

indirect

indirect labor incurred...

indirect

indirect materials used...

indirect

sold a long term stock investment for cash at book value

investing/cash inflow

paid cash for a new piece of equipment

investing/cash outflow

paid cash for stock in another company

investing/cash outflow

Declared and issued 100 shares of $20 par common stock as a stock dividend, when the market price of the stock was $32 a share.

n/a

admin office salaries & utilities on admin facilities...

neither

insurance expire on admin facilities...

neither

period costs include...

operating costs that are shown on income statement

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

planning and controlling

direct labor incurred...

product

direct materials used...

product

factory machinery repairs and maintenance...

product

factory utilities...

product

indirect labor incurred...

product

indirect materials used...

product

plant insurance expired...

product

salary of plant manager...

product

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

usefulness to management

the percent of fixed assets to total assets is an example of...

vertical analysis

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

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

decrease in acc rec & increase in accrued liabilities

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

deducted from net income/reported on income statement to cash flows from operating activities

direct labor incurred...

direct

direct materials used...

direct

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 costs are referred to as conversion costs?

direct labor cost and fo cost


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