ACC 280 Final Exam 6

ACC 280 Final Exam 6 1. (TCO 1) Which of the following would not be considered an internal user of accounting data for a company? 2. (TCO 1) Resources owned by a business are referred to as . 3. (TCO 1) To show how successfully your business performed during a period of time, you would report its revenues and expenses in the 4. (TCO 1) Henson Company began the year with retained earnings of $175,000. During the year, the company recorded revenues of $250,000, expenses of $190,000, and paid dividends of $20,000. What was Henson’s retained earnings at the end of the year? (Points : 4) 5. (TCO 4) Which of the following statements is not true? (Points : 4) 6. (TCO 4) Using the following balance sheet and income statement data, what is the current ratio? 7. (TCO4) Using the following balance sheet and income statement data, what is the total amount of working capital? 8. (TCO 4) Using the following balance sheet and income statement data, what is the debt to total assets ratio? Current assets $7,000 Net income $12,000 Current liabilities 4,000 Stockholders’ equity 21,000 Total assets 30,000 Total liabilities 9,000 Average common shares outstanding was 10,000 (Points : 4) 9. (TCO 2) Franklin Company provided consulting services and billed the client $2,500. As a result of this event, . (Points : 4) 10. (TCO 2) A credit is not the normal balance for which account listed below? (Points : 4) 11. (TCO 2) In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $400. The cash account has a (Points : 4) 12. (TCO 2) A trial balance would only help in detecting which one of the following errors? (Points : 4) 13. (TCO 3) Related buying activities include (Points : 4) 14. (TCO 3) Ron Jones has been a trusted employee for over 10 years. He is responsible for ordering merchandise inventory, receiving the inventory items, and authorizing the payment for these items. Which internal control principle, if any, is being violated? (Points : 4) 15. (TCO 3) For which of the following errors should the appropriate amount be subtracted from the balance per bank on a bank reconciliation? (Points : 4) 1) The standards and rules that are recognized as a general guide for financial reporting are called . 2) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March? 3) Which one of the following items is not generally used in preparing a statement of cash flows? 4) The cost principle requires that when assets are acquired, they be recorded at . 5) What is the preparation of reports for each level of responsibility in the company’s organization chart called? 6) The cost principle is the basis for preparing financial statements because it is . 7) Which list below best describes the major services performed by public accountants? 8) A well-designed activity-based costing system starts with . 9) The income statement and 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 Closing entries are necessary for . 10) What exists when budgeted costs exceed actual results? 11) Multinational corporations . 12) The major reporting standard for management accounts is . 13) The primary purpose of the statement of cash flows is to . 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?