A100 FINAL EXAM IU
Last month, Buren, Inc. manufactured 10,000 units of its only
product, and the cost per unit was $60. At this level of production,
variable costs are 50% of total unit costs. If 10,500 units are
manufactured this month and cost behavior patterns remain
unchanged
A) total variable cost will remain unchanged.
B) variable cost per unit will increase.
C) fixed costs per unit will increase.
D) total cost per unit will decrease. - ANSWERS-total cost per unit
will decrease.
Last year Dallas Company reported sales of $640,000, a contribution
margin of $160,000, and a net loss of $40,000. Based on this
information, Dallas needed how much in total sales to breakeven?
A) $800,000
B) $640,000
C) $480,000
D) $720,000 - ANSWERS-$800,000
A product sells for $20 per unit and has a contribution margin ratio of
40%. Fixed expenses total $120,000 annually. How many units must
be sold to yield an annual net income of $30,000?
,A) 20,000
B) 18,750
C) 25,000
D) 12,500 - ANSWERS-18,750
Venice Company had $46,000 in total assets, $26,000 in current
liabilities, and $10,000 in stockholders' equity at December 31, 2026.
At that time Venice's current ratio was 1.5. How much did Venice
have in current assets at December 31, 2026?
A) $24,000
B) $15,000
C) $10,000
D) $39,000 - ANSWERS-$39,000
Daily, Inc. began 2025 with $6,400 in inventory and ended the year
with $5,600 in inventory. During 2025, Daily sold $32,000 of its
inventory for a total of $69,000. At the end of 2025, Daily still owed
$3,500 to its suppliers of inventory. How much was Daily's inventory
turnover ratio?
A) 5.46
B) 5.20
C) 5.33
D) 5.86 - ANSWERS-5.33
,Madison Company issued 200 shares of stock for $10 apiece when it
began business on January 1, 2019. No stock has been issued since
that time. The balance in stockholders' equity at January 1, 2025 was
$40,000. During 2025, $10,000 was paid in dividends. At December
31, 2025, Madison had total assets of $92,000 and total liabilities of
$32,000. What was Madison's earnings per share?
A) $260
B) $160
C) $200
D) $150 - ANSWERS-$150
Kirtland Company went into business in 2016 when it sold 200 shares
of stock for $20 apiece. No more stock has been issued since that
time. At December 31, 2025, Kirtland had $16,000 in its retained
earnings, and at December 31, 2026, retained earnings was $12,000.
Kirtland paid $10,000 in dividends during 2026. What is Kirtland's
earnings per share for 2026?
A) $300
B) $2
C) $50
D) $30 - ANSWERS-$30
Which of the following is a solvency ratio?
, A) Current ratio
B) Deb-to-equity ratio
C) Earnings per share
D) Return on equity ratio - ANSWERS-Current ratio
Which of the following ratios is of the most importance in
determining the price of a stock on the stock market?
A) Current ratio
B) Debt-to-equity
C) Earnings per share
D) Return on equity - ANSWERS-Earnings per share
Which of the following is primarily responsible for the information
provided in the financial statements?
A) Board of Directors
B) Internal Accounting Staff
C) Company Top Management
D) External Auditors - ANSWERS-Company Top Management
Which of the following describes the primary objective of financial
accounting?
Last month, Buren, Inc. manufactured 10,000 units of its only
product, and the cost per unit was $60. At this level of production,
variable costs are 50% of total unit costs. If 10,500 units are
manufactured this month and cost behavior patterns remain
unchanged
A) total variable cost will remain unchanged.
B) variable cost per unit will increase.
C) fixed costs per unit will increase.
D) total cost per unit will decrease. - ANSWERS-total cost per unit
will decrease.
Last year Dallas Company reported sales of $640,000, a contribution
margin of $160,000, and a net loss of $40,000. Based on this
information, Dallas needed how much in total sales to breakeven?
A) $800,000
B) $640,000
C) $480,000
D) $720,000 - ANSWERS-$800,000
A product sells for $20 per unit and has a contribution margin ratio of
40%. Fixed expenses total $120,000 annually. How many units must
be sold to yield an annual net income of $30,000?
,A) 20,000
B) 18,750
C) 25,000
D) 12,500 - ANSWERS-18,750
Venice Company had $46,000 in total assets, $26,000 in current
liabilities, and $10,000 in stockholders' equity at December 31, 2026.
At that time Venice's current ratio was 1.5. How much did Venice
have in current assets at December 31, 2026?
A) $24,000
B) $15,000
C) $10,000
D) $39,000 - ANSWERS-$39,000
Daily, Inc. began 2025 with $6,400 in inventory and ended the year
with $5,600 in inventory. During 2025, Daily sold $32,000 of its
inventory for a total of $69,000. At the end of 2025, Daily still owed
$3,500 to its suppliers of inventory. How much was Daily's inventory
turnover ratio?
A) 5.46
B) 5.20
C) 5.33
D) 5.86 - ANSWERS-5.33
,Madison Company issued 200 shares of stock for $10 apiece when it
began business on January 1, 2019. No stock has been issued since
that time. The balance in stockholders' equity at January 1, 2025 was
$40,000. During 2025, $10,000 was paid in dividends. At December
31, 2025, Madison had total assets of $92,000 and total liabilities of
$32,000. What was Madison's earnings per share?
A) $260
B) $160
C) $200
D) $150 - ANSWERS-$150
Kirtland Company went into business in 2016 when it sold 200 shares
of stock for $20 apiece. No more stock has been issued since that
time. At December 31, 2025, Kirtland had $16,000 in its retained
earnings, and at December 31, 2026, retained earnings was $12,000.
Kirtland paid $10,000 in dividends during 2026. What is Kirtland's
earnings per share for 2026?
A) $300
B) $2
C) $50
D) $30 - ANSWERS-$30
Which of the following is a solvency ratio?
, A) Current ratio
B) Deb-to-equity ratio
C) Earnings per share
D) Return on equity ratio - ANSWERS-Current ratio
Which of the following ratios is of the most importance in
determining the price of a stock on the stock market?
A) Current ratio
B) Debt-to-equity
C) Earnings per share
D) Return on equity - ANSWERS-Earnings per share
Which of the following is primarily responsible for the information
provided in the financial statements?
A) Board of Directors
B) Internal Accounting Staff
C) Company Top Management
D) External Auditors - ANSWERS-Company Top Management
Which of the following describes the primary objective of financial
accounting?
