ACCT 2302 Midterm Exam Questions with Correct Answers Latest Update 2025/2026
The ability to generate future revenues and meet long-term obligations is referred to as: -
Answers Solvency
Evaluation of company performance can include comparison and/or assessment of all but
which of the following: - Answers External user needs and demands
A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet. Its
common-size percent for cash equals: - Answers 7.85%
Clairmont Industries reported Net income of $283,000 and average Total assets of $637,000.
The Return on total assets is - Answers 44.4%
A company had a market price of $39.40 per share, earnings per share of $2.20, and dividends
per share of $1.35. Its price-earnings ratio equals: - Answers 17.9
An approach to managing inventories and production operations such that units of materials
and products are obtained and provided only as they are needed is called: - Answers Just-in-
time manufacturing
Raw materials that are tangible components of the finished product and can be separately and
readily traced through the manufacturing process are called: - Answers Direct materials
A manufacturing company has a beginning finished goods inventory of $27,800, cost of goods
manufactured of $58,000, and an ending finished goods inventory of $27,100. The cost of
goods sold for this company is: - Answers $58,700
Woke Company's direct materials costs are $3,700,000, its direct labor costs total $7,630,000,
and its factory overhead costs total $5,630,000. Its prime costs total: - Answers $11,330,000
A source document that an employee uses to report how much time was spent working on a job
or on overhead activities and that is used to determine the amount of direct labor to charge to
the job or to determine the amount of indirect labor to charge to factory overhead is called a: -
Answers Time ticket
Features of a job costing system include all but which of the following: - Answers Mass
production
A company has an overhead application rate of 123% of direct labor costs. How much overhead
would be allocated to a job if it required total labor costing $25,000? - Answers $30,750
Dallas Company uses a job order costing system. The company's executives estimated that
direct labor would be $3,360,000 (240,000 hours at $14/hour) and that factory overhead would
be $1,540,000 for the current period. At the end of the period, the records show that there had
been 220,000 hours of direct labor and $1,240,000 of actual overhead costs. Using direct labor
The ability to generate future revenues and meet long-term obligations is referred to as: -
Answers Solvency
Evaluation of company performance can include comparison and/or assessment of all but
which of the following: - Answers External user needs and demands
A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet. Its
common-size percent for cash equals: - Answers 7.85%
Clairmont Industries reported Net income of $283,000 and average Total assets of $637,000.
The Return on total assets is - Answers 44.4%
A company had a market price of $39.40 per share, earnings per share of $2.20, and dividends
per share of $1.35. Its price-earnings ratio equals: - Answers 17.9
An approach to managing inventories and production operations such that units of materials
and products are obtained and provided only as they are needed is called: - Answers Just-in-
time manufacturing
Raw materials that are tangible components of the finished product and can be separately and
readily traced through the manufacturing process are called: - Answers Direct materials
A manufacturing company has a beginning finished goods inventory of $27,800, cost of goods
manufactured of $58,000, and an ending finished goods inventory of $27,100. The cost of
goods sold for this company is: - Answers $58,700
Woke Company's direct materials costs are $3,700,000, its direct labor costs total $7,630,000,
and its factory overhead costs total $5,630,000. Its prime costs total: - Answers $11,330,000
A source document that an employee uses to report how much time was spent working on a job
or on overhead activities and that is used to determine the amount of direct labor to charge to
the job or to determine the amount of indirect labor to charge to factory overhead is called a: -
Answers Time ticket
Features of a job costing system include all but which of the following: - Answers Mass
production
A company has an overhead application rate of 123% of direct labor costs. How much overhead
would be allocated to a job if it required total labor costing $25,000? - Answers $30,750
Dallas Company uses a job order costing system. The company's executives estimated that
direct labor would be $3,360,000 (240,000 hours at $14/hour) and that factory overhead would
be $1,540,000 for the current period. At the end of the period, the records show that there had
been 220,000 hours of direct labor and $1,240,000 of actual overhead costs. Using direct labor
