University of Phoenix-BUS 475-Sample 19 - All 100 Questions Answered. (Study Guide)

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1) The cost principle requires that when assets are acquired, they be recorded at __________. A. list price B. exchange price paid C. selling price D. appraisal value 2) Which one of the followin... g items is not generally used in preparing a statement of cash flows? A. Additional information B. Comparative balance sheets C. Current income statement D. Adjusted trial balance 3) Multinational corporations __________. A. are U.S. companies that trade their securities on the exchanges in other countries B. are U.S. companies that sell goods & services in other countries C. are firms that conduct their operations in more than one country through subsidiaries, divisions, or branches in foreign countries D. are required to use international accounting standards 4) What effect do current technology changes have on managerial accounting? A. Reduction of reporting costs of managerial accounting information B. Increase in product costs C. Reduction of emphasis on the value chain D. Creation of the middleman 5) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) & lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A. $90,000 B. $60,000 C. $75,000 D. $150,000 6) A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 & used FIFO costing, the gross profit for the period would be _____. A. $50 B. $75 C. $60 D. $65 7) The cost principle is the basis for preparing financial statements because it is __________. A. the most accurate measure of purchasing power B. a conservative value C. relevant & objectively measured, & verifiable D. an international accounting standard 8) The standards & rules that are recognized as a general guide for financial reporting are called __________. A. standards of financial reporting B. generally accepted accounting standards C. generally accepted accounting principles D. operating guidelines 9) What is value chain management best defined as? A. All activities associated with providing a product or service B. A large chain that keeps the machines from falling on the production floor C. Management decisions that affect how quickly the production run occurs D. The incremental value of costs associated with hiring a new production floor leader 10) The income statement & balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 The net income (or loss) for the period is __________. A. not determinable B. $48,000 income C. $10,000 income D. $10,000 loss 11) The first step in activity-based costing is to __________. A. identify the cost driver that has a strong correlation to the activity cost pool B. assign manufacturing overhead costs for each activity cost pool to products C. compute the activity-based overhead rate per cost driver D. identify & classify the major activities involved in the manufacture of specific products 12) The conceptual framework developed by the Financial Accounting Standards Board __________. A. is legally binding on all accountants B. was approved by a vote of all accountants C. are rules that all accountants must follow D. is viewed as providing a constitution for setting accounting standards for financial reporting 13) The cost of an asset & its fair market value are __________. A. the same on the date of acquisition B. never the same C. the same when the asset is sold D. irrelevant when the asset is used by the business in its operations 14) If a company reports a net loss, it __________. A. will not be able to make capital expenditures B. will not be able to get a loan C. may still have a net increase in cash D. will not be able to pay cash dividends 15) A logical starting point from which the study of international trade begins is __________. A. the principle of comparative advantage B. the principle of absolute advantage C. the recognition that not all markets are competitive D. the recognition that government intervention in markets sometimes enhances the economic welfare of the society [Show More]

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