University of Phoenix - BUS 475 Final Exam Answers-Set 1. LATEST 2020(100% A Grade)

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1) Which one of the following items is not generally used in preparing a statement of cash flows? A. Adjusted trial balance B. Comparative balance sheets C. Additional information D. Current inco... me statement 2) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A. $150,000 B. $60,000 C. $90,000 D. $75,000 3) Of the following companies, which one would not likely employ the specific identification method for inventory costing? A. Music store specializing in organ sales B. Antique shop C. Farm implement dealership D. Hardware store 4) Which one of the following is a product cost? A. Indirect labor B. Sales person’s salaries C. Office salaries D. Advertising costs 5) The conceptual framework developed by the Financial Accounting Standards Board __________. A. was approved by a vote of all accountants B. is viewed as providing a constitution for setting accounting standards for financial reporting C. are rules that all accountants must follow D. is legally binding on all accountants 6) What is the preparation of reports for each level of responsibility in the company’s organization chart called? A. Static reporting B. Exception reporting C. Responsibility reporting D. Master budgeting analysis 7) The cost principle requires that when assets are acquired, they be recorded at __________. A. appraisal value B. selling price C. exchange price paid D. list price 8) 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 9) The major reporting standard for management accounts is __________. A. generally accepted accounting principles B. relevance to decisions C. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management D. the Sarbanes-Oxley Act of 2002 10) The primary purpose of the statement of cash flows is to __________. A. facilitate banking relationships B. provide information about the cash receipts and cash payments during a period C. provide information about the investing and financing activities during a period D. prove that revenues exceed expenses if there is a net income 11) Managerial accounting __________. A. places emphasis on special-purpose information B. pertains to the entity as a whole and is highly aggregated C. is concerned with costing products D. is governed by generally accepted accounting principles 12) A well-designed activity-based costing system starts with __________. A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products C. identifying the activity-cost pools D. computing the activity-based overhead rate 13) Balance sheet accounts are considered to be __________. A. nominal accounts B. capital accounts C. temporary stockholders’ accounts D. permanent accounts 14) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? A. Cost of landscaping the corporate office B. The western division’s vice president’s salary C. General corporate liability insurance D. Factory janitor 15) There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. The names given to these market structures are __________. A. perfect competition and monopolistic competition B. duopoly and imperfect competition C. duopoly and triopoly D. monopolistic competition and oligopoly [Show More]

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