Chapter 9 Dynamic Module Review
Practice Exam Guide.
Which of the following is NOT true about credit card sales and budgets? - CORRECT ANSWER A sale is
shown on the operating expense budget, two months after the sale.
United Needed for Sales + Desired Ending Inventory - Units in Beginning Inventory is the formula to
compute - CORRECT ANSWER Units to produce
The computation for sales revenue is - CORRECT ANSWER Expected Number of Unit Sales x Expected
Sales Price per Unit
Benchmarking - CORRECT ANSWER May help a manager motivate employees and provide a measure to
evaluate performance
Capital expenditure budgets - CORRECT ANSWER Reveal a manager's intent to invest in new property,
plant, or equipment
A budget - CORRECT ANSWER Should force a manager to plan, promote coordination, and provide a
benchmark for motivation employees and evaluation actual performance
The characteristics of a retail credit card include each of the following EXCEPT - CORRECT ANSWER The
card issuer assumes the credit risk
Customer World expects the credit card company to deposit funds in their business account for their
sales where a customer uses a credit card to pay.
If Customer World earned $90 from a sale and the transaction fee was $1.25, how much should
Customer World expect the credit card company to deposit into their business account? - CORRECT
ANSWER $88.75
, Customer World provides and services to customers and allows customers to pay by credit card. On
Thursday, a customer purchased a computer for $600 and used a credit card to pay. The credit card
company charges Computer World a transaction fee qual to $0.20 + 1% of the total charge.
What is the transaction fee Customer World must pay on this scale? - CORRECT ANSWER $6.20
Which of the following answers describes the benefits of the financial budget? - CORRECT ANSWER A
manager who uses this budget can compile the capital expenditure budget, the cash budget, and the
budgeted balance sheet.
The Paper Mill expects to sell 6,000 reams of paper in October and 8,000 in November for $6 each.
What is the total sales revenue for the sales budget during October and November? - CORRECT ANSWER
$36,000 October; $48,000 November
Which of the following is a benefit to a merchant who accepts credit and debit card transactions? -
CORRECT ANSWER The acceptance of credit cards increases the speed of cash flows
A _ is a lending tool the company can use to draw money as needed at a specified rate of interest, for a
specified amount of time, paying on the actual amount owed instead of a closed-end note. - CORRECT
ANSWER line of credit
The managerial accountant at Hill's Development Services expects to collect 30% of its credit sales in the
month after the sale and 40% two months after the sale. Assume credit sales in December were
$100,000 and November sales were $90,000.
November credit sales
$90,000
December credit sales
Practice Exam Guide.
Which of the following is NOT true about credit card sales and budgets? - CORRECT ANSWER A sale is
shown on the operating expense budget, two months after the sale.
United Needed for Sales + Desired Ending Inventory - Units in Beginning Inventory is the formula to
compute - CORRECT ANSWER Units to produce
The computation for sales revenue is - CORRECT ANSWER Expected Number of Unit Sales x Expected
Sales Price per Unit
Benchmarking - CORRECT ANSWER May help a manager motivate employees and provide a measure to
evaluate performance
Capital expenditure budgets - CORRECT ANSWER Reveal a manager's intent to invest in new property,
plant, or equipment
A budget - CORRECT ANSWER Should force a manager to plan, promote coordination, and provide a
benchmark for motivation employees and evaluation actual performance
The characteristics of a retail credit card include each of the following EXCEPT - CORRECT ANSWER The
card issuer assumes the credit risk
Customer World expects the credit card company to deposit funds in their business account for their
sales where a customer uses a credit card to pay.
If Customer World earned $90 from a sale and the transaction fee was $1.25, how much should
Customer World expect the credit card company to deposit into their business account? - CORRECT
ANSWER $88.75
, Customer World provides and services to customers and allows customers to pay by credit card. On
Thursday, a customer purchased a computer for $600 and used a credit card to pay. The credit card
company charges Computer World a transaction fee qual to $0.20 + 1% of the total charge.
What is the transaction fee Customer World must pay on this scale? - CORRECT ANSWER $6.20
Which of the following answers describes the benefits of the financial budget? - CORRECT ANSWER A
manager who uses this budget can compile the capital expenditure budget, the cash budget, and the
budgeted balance sheet.
The Paper Mill expects to sell 6,000 reams of paper in October and 8,000 in November for $6 each.
What is the total sales revenue for the sales budget during October and November? - CORRECT ANSWER
$36,000 October; $48,000 November
Which of the following is a benefit to a merchant who accepts credit and debit card transactions? -
CORRECT ANSWER The acceptance of credit cards increases the speed of cash flows
A _ is a lending tool the company can use to draw money as needed at a specified rate of interest, for a
specified amount of time, paying on the actual amount owed instead of a closed-end note. - CORRECT
ANSWER line of credit
The managerial accountant at Hill's Development Services expects to collect 30% of its credit sales in the
month after the sale and 40% two months after the sale. Assume credit sales in December were
$100,000 and November sales were $90,000.
November credit sales
$90,000
December credit sales
