Financial Accounting (BUS 302L) UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Comparing actual outcomes with budget outcomes, then following up, is an example of a
a. planning activities
b. operating activities
c. controlling activities
d. accounting activities
e. staffing activities - CORRECT ANSWER - c. controlling activities
Which of the following is typically a starting point for the budget process?
a. a summary cash budget
b. a sales budget
c. a budget balance sheet
d. a production budget
e. a materials purchase budget - CORRECT ANSWER - b. a sales budget
,Tax accounting is generally most used by:
a. Share holder
b. Manager
c. Creditors
d. Internal revenue service
e. Decision makers - CORRECT ANSWER - d. Internal revenue service
Management accountant place more emphases on which of the following:
a. certified financial statement
b. future activities
c. historial cost information
d. cash flow
e. annual tax returns - CORRECT ANSWER - b. future activities
Which of the following organization would be most likely to accept a process costing system?
a. customer homebuilder
,b. law office
c. paper manufacture
d. dental office
e. TV sale and services organization - CORRECT ANSWER - c. paper manufacture
The discount rate for use in capital budgeting decision is also referred to as
a. a cost of capital
b. the cost of capital
c. the hurdle rate
d. the minimum required rate of return
e. all none - CORRECT ANSWER - d. the minimum required rate of return
What is breakeven point in units?
Sale price : $7.50 per unit
Variable cost : $2.25 per unit
Fixed cost : $10,000
Units sold : 20,000
a. 1333
, b. 1905
c. 10000
d. 20000
e. some number other than these 4 - CORRECT ANSWER - b. 1905
BP: Fixed Cost / (Price - VC)
BP: 10,000 / (7.50 - 2.25) = 1905
A balance sheet shows
a. revenues, liabilities and stockholders' equity
b. expenses, dividends, and stockholders' equity
c. revenues, expenses, and dividends.
d. assets, liabilities and stockholders' equity
e. none of the options listed - CORRECT ANSWER - d. assets, liabilities and stockholders'
equity
The excess of expenses over revenues for a period is:
ACTUAL Exam Questions and CORRECT
Answers
Comparing actual outcomes with budget outcomes, then following up, is an example of a
a. planning activities
b. operating activities
c. controlling activities
d. accounting activities
e. staffing activities - CORRECT ANSWER - c. controlling activities
Which of the following is typically a starting point for the budget process?
a. a summary cash budget
b. a sales budget
c. a budget balance sheet
d. a production budget
e. a materials purchase budget - CORRECT ANSWER - b. a sales budget
,Tax accounting is generally most used by:
a. Share holder
b. Manager
c. Creditors
d. Internal revenue service
e. Decision makers - CORRECT ANSWER - d. Internal revenue service
Management accountant place more emphases on which of the following:
a. certified financial statement
b. future activities
c. historial cost information
d. cash flow
e. annual tax returns - CORRECT ANSWER - b. future activities
Which of the following organization would be most likely to accept a process costing system?
a. customer homebuilder
,b. law office
c. paper manufacture
d. dental office
e. TV sale and services organization - CORRECT ANSWER - c. paper manufacture
The discount rate for use in capital budgeting decision is also referred to as
a. a cost of capital
b. the cost of capital
c. the hurdle rate
d. the minimum required rate of return
e. all none - CORRECT ANSWER - d. the minimum required rate of return
What is breakeven point in units?
Sale price : $7.50 per unit
Variable cost : $2.25 per unit
Fixed cost : $10,000
Units sold : 20,000
a. 1333
, b. 1905
c. 10000
d. 20000
e. some number other than these 4 - CORRECT ANSWER - b. 1905
BP: Fixed Cost / (Price - VC)
BP: 10,000 / (7.50 - 2.25) = 1905
A balance sheet shows
a. revenues, liabilities and stockholders' equity
b. expenses, dividends, and stockholders' equity
c. revenues, expenses, and dividends.
d. assets, liabilities and stockholders' equity
e. none of the options listed - CORRECT ANSWER - d. assets, liabilities and stockholders'
equity
The excess of expenses over revenues for a period is:
