ACC 561 Week 6 Final Guide

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ACC 561 Week 6 Final Guide Check this A
tutorial guideline at http//www.assignmentcloud
.com/ACC-561/ACC-561-Week-6-Final-Guide Multiple
Choice Question 49 Which of the following is an
advantage of corporations relative to
partnerships and sole proprietorships? Lower
taxes. Harder to transfer ownership. Most common
form of organization. Reduced legal liability for
investors.   Multiple Choice Question 64 The
group of users of accounting information charged
with achieving the goals of the business is
its auditors. creditors. managers. investors.  
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Multiple Choice Question 110  Which of the
following financial statements is concerned with
the company at a point in time? Entry field with
correct answer  Income statement. Balance
sheet.  Retained Earnings statement. Statement of
cash flows.   Multiple Choice Question 112 An
income statement presents the revenues and
expenses for a specific period of
time.  summarizes the changes in retained
earnings for a specific period of time.  reports
the assets, liabilities, and stockholders equity
at a specific date. reports the changes in
assets, liabilities, and stockholders equity
over a period of time.   Multiple Choice Question
118 The most important information needed to
determine if companies can pay their current
obligations is the net income for this
year. relationship between current assets and
current liabilities. projected net income for
next year. relationship between short-term and
long-term liabilities.   Multiple Choice Question
124
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 A liquidity ratio measures the short-term
ability of a company to pay its maturing
obligations and to meet unexpected needs for
cash. percentage of total financing provided by
creditors. income or operating success of a
company over a period of time. ability of a
company to survive over a long period of
time.   Multiple Choice Question 165 The
convention of consistency refers to consistent
use of accounting principles throughout the
accounting periods. among firms. within
industries. among accounting periods.   Multiple
Choice Question 90 Horizontal analysis is also
known as  common size analysis. linear
analysis. vertical analysis. trend
analysis. Multiple Choice Question 92 Horizontal
analysis is a technique for evaluating a series
of financial statement data over a period of
time to determine which items are in error. that
has been arranged from the highest number to the
lowest number.
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to determine the amount and/or percentage
increase or decrease that has taken place. that
has been arranged from the lowest number to the
highest number.   Multiple Choice Question
111 Vertical analysis is a technique that
expresses each item in a financial statement as a
percent of a base amount. in dollars and
cents. starting with the highest value down to
the lowest value. as a percent of the item in the
previous year.   Multiple Choice Question
41 Process costing is used when the production
process is continuous. costs are to be assigned
to specific jobs. production is aimed at filling
a specific customer order. dissimilar products
are involved.   Multiple Choice Question 43 An
important feature of a job order cost system is
that each job must be similar to previous jobs
completed. has its own distinguishing
characteristics. must be completed before a new
job is accepted. consists of one unit of
output.   Multiple Choice Question 49
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In a process cost system, product costs are
summarized on job cost sheets. on production
cost reports. when the products are sold. after
each unit is produced.   Multiple Choice Question
33 An activity that has a direct cause-effect
relationship with the resources consumed is
a(n) overhead rate. product activity. cost
driver. cost pool.   Multiple Choice Question
40 Activity-based costing allocates overhead to
multiple activity cost pools, and it then assigns
the activity cost pools to products and services
by means of cost drivers.  assigns activity cost
pools to products and services, then allocates
overhead back to the activity cost
pools. accumulates overhead in one cost pool,
then assigns the overhead to products and
services by means of a cost driver. allocates
overhead directly to products and services based
on activity levels.   Multiple Choice Question
40 A cost which remains constant per unit at
various levels of activity is a
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mixed cost. fixed cost. manufacturing
cost. variable cost.   Multiple Choice Question
105 The break-even point is where total sales
equal total variable costs. total variable costs
equal total fixed costs. total sales equal total
fixed costs. contribution margin equals total
fixed costs.   Multiple Choice Question 109 Fixed
costs are 600,000 and the contribution margin
per unit is 150. What is the break-even
point? 1,500,000 4,000,000 1,500 units 4,000
units   Multiple Choice Question 94 When a
company assigns the costs of direct materials,
direct labor, and both variable and fixed
manufacturing overhead to products, that company
is using product costing. operations costing.
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 absorption costing. variable costing.   Multiple
Choice Question 122 If a division manager's
compensation is based upon the division's net
income, the manager may decide to meet the net
income targets by increasing production when
using variable costing, in order to increase net
income. variable costing, in order to decrease
net income. absorption costing, in order to
increase net income. absorption costing, in order
to decrease net income.   Multiple Choice
Question 50 An unrealistic budget is more likely
to result when it has been developed by all
levels of management. has been developed in a
bottom up fashion. has been developed in a top
down fashion. is developed with performance
appraisal usages in mind.   Multiple Choice
Question 39 A major element in budgetary control
is the valuation of inventories. the preparation
of long-term plans. approval of the budget by the
stockholders. the comparison of actual results
with planned objectives.    
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Multiple Choice Question 43 The purpose of the
sales budget report is to control sales
commissions. control selling expenses.  determine
whether income objectives are being
met. determine whether sales goals are being
met.   Multiple Choice Question 89 The
accumulation of accounting data on the basis of
the individual manager who has the authority to
make day-to-day decisions about activities in an
area is called   flexible accounting. static
reporting. responsibility accounting. master
budgeting. Multiple Choice Question 142 Variance
reports are (a) external financial reports.  (b)
SEC financial reports.  (c) internal reports for
management.  (d) all of these.   Multiple Choice
Question 40 Internal reports that review the
actual impact of decisions are prepared by the
controller.
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management accountants. factory
workers. department heads.   Multiple Choice
Question 42 The process of evaluating financial
data that change under alternative courses of
action is called cost-benefit analysis. contributi
on margin analysis. incremental analysis. double
entry analysis.   Multiple Choice Question
54 Seasons Manufacturing manufactures a product
with a unit variable cost of 100 and a unit
sales price of 176. Fixed manufacturing costs
were 480,000 when 10,000 units were produced and
sold. The company has a one-time opportunity to
sell an additional 1,000 units at 140 each in a
foreign market which would not affect its present
sales. If the company has sufficient capacity to
produce the additional units, acceptance of the
special order would affect net income as
follows Income would increase by 40,000. Income
would decrease by 8,000. Income would increase
by 140,000. Income would increase by
8,000. Multiple Choice Question 70 Carter, Inc.
can make 100 units of a necessary component part
with the following costs
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Direct Materials 120,000 Direct Labor
20,000 Variable Overhead 60,000 Fixed Overhead
40,000 If Carter can purchase the component
externally for 220,000 and only 10,000 of the
fixed costs can be avoided, what is the correct
make-or-buy decision? Buy and save 30,000 Make
and save 10,000 Buy and save 10,000 Make and
save 30,000   Multiple Choice Question 84 A
company has a process that results in 15,000
pounds of Product A that can be sold for 16 per
pound. An alternative would be to process Product
A further at a cost of 200,000 and then sell it
for 28 per pound. Should management sell Product
A now or should Product A be processed further
and then sold? What is the effect of the
action? Sell now, the company will be better off
by 20,000. Sell now, the company will be better
off by 200,000. Process further, the company
will be better off by 180,000. Process further,
the company will be better off by 20,000.   For
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