ACCT 212 Final Exam-Liberty University questions with answers

ACCT 212 Final Exam-Liberty University
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questions with answers |\ |\




Horizontal Analysis (side-by-side) - CORRECT ANSWERS
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✔✔compare year to year analysis of each account's dollar
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amount changes and percentage changes; dollar change=current
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year minus previous year; %change= dollar change/previous
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year


Vertical Analysis of Balance Sheet - CORRECT ANSWERS ✔✔each
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item is stated as a percent of total assets.
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Vertical Analysis of Income Statement - CORRECT ANSWERS
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✔✔account balance/net sales |\ |\




ratio analysis - CORRECT ANSWERS ✔✔the assessment of a firm's
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financial condition using calculations and interpretations of
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financial ratios developed from the firm's financial statements
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current ratio - CORRECT ANSWERS ✔✔current assets/current
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liabilities


acid-test ratio - CORRECT ANSWERS ✔✔(Current Assets -
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Inventory) / Current Liabilities|\ |\ |\




total asset turnover - CORRECT ANSWERS ✔✔net sales/average
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total assets
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,A/R turnover - CORRECT ANSWERS ✔✔Sales/Average A/R, net
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Days' sales uncollected - CORRECT ANSWERS ✔✔365 / A/R
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Turnover


inventory turnover - CORRECT ANSWERS ✔✔COGS/Average
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Inventory


debt-to-equity ratio - CORRECT ANSWERS ✔✔total liabilities/total
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equity


times interest earned - CORRECT ANSWERS ✔✔EBIT/ interest
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expense


profit margin - CORRECT ANSWERS ✔✔net income/net sales
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return on assets - CORRECT ANSWERS ✔✔net income/average
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total assets|\




working capital - CORRECT ANSWERS ✔✔current assets-current
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liabilities


fixed costs - CORRECT ANSWERS ✔✔costs that remain constant
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as output changes
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, variable costs - CORRECT ANSWERS ✔✔costs that vary directly
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with the level of production
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direct costs - CORRECT ANSWERS ✔✔Costs that can be
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specifically identified with a particular project or activity.
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indirect costs - CORRECT ANSWERS ✔✔Costs that cannot be
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easily and accurately traced to a cost object.
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schedule of cost of goods manufactured - CORRECT ANSWERS
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✔✔Direct Materials used |\ |\




+Direct Labor |\




+Factory Overhead |\




=total manufacturing cost
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+beginning WIP |\




-ending WIP |\




=COGM


direct labor - CORRECT ANSWERS ✔✔the work of factory
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employees that can be physically and directly associated with
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converting raw materials into finished goods |\ |\ |\ |\ |\




indirect labor - CORRECT ANSWERS ✔✔The labor costs of janitors,
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supervisors, materials handlers, and other factory workers that
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cannot be conveniently traced to particular products.
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