Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Accounting
Q:
Charleston Company was nearing year-end and the CEO wanted to report a high level of inventory on the balance sheet. An order of raw materials was planned for early the next year, but the CEO asked the purchasing manager to accelerate the shipment so that it would arrive before the end of the year. Because this action was taken deliberately to affect the financial results of the company, it would be considered unethical.
Q:
Baker products shipped an order to a customer on the second day of January. Later that day, the sales manager told the accountant to record the sale as if it had taken place on the last day of December. This would allow the company to book the sales revenue in the year just ended and boost year-end profit. Because the transaction was a legitimate sale, the alteration of the date of sale alone would not be considered unethical.
Q:
The sales manager for Baker Products told the shipping department to ship an order to a customer on the last day of December instead of the previously scheduled shipping date of January 2. This would allow the company to book the sales revenue in the year just ended and boost year-end profit. Although done deliberately to boost income, the action did not misrepresent any facts of the situation, and so it would not be considered unethical.
Q:
The accountant for Spiral Supplies deliberately post-dated a check to pay for business expenses in order to record a higher net income for the company. As long as the amount was not material, this would not be considered unethical behavior.
Q:
Maintaining confidentiality of company information is a key element of ethical professional practice.
Q:
The IMA standards of ethical practice provide that accountants should continually develop their knowledge and skills.
Q:
Which of the following BEST describes the value chain?
A) A management information system which tracks the costs of products through the manufacturing process
B) The minimizing of inventory levels to reduce storage, insurance and finance costs
C) All activities that contribute to the continuous improvement of business operations
D) The whole sequence of activities that add value to the goods and services sold to end-users
Q:
Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?
A) Supply chain management
B) Just-in-time (JIT)
C) Enterprise resource planning
D) Total quality management
Q:
Which of the following is NOT an advantage of just-in-time inventory management?
A) Surplus inventory is maintained to prevent production shut-down in case of supply interruption
B) Lower inventory levels reduce storage cost
C) Inventory kept for shorter periods of time reduces the amount of goods that become obsolete
D) Reduce the amount of insurance needed for lower levels of inventory
Q:
Which of the following BEST describes just-in-time inventory management?
A) Production system that stores surplus goods at each stage of manufacture
B) Inventory purchasing process that gains purchase discounts by buying in large quantities
C) Production system that focuses on delivering materials and goods in exactly the right quantity when needed
D) Inventory system which stockpiles raw materials to protect against supply interruptions
Q:
What is the name given to software systems that can integrate all of a company's worldwide functions, departments and data into a single system?
A) Total quality management
B) Enterprise resource planning
C) E-Commerce
D) Just-in-time inventory management
Q:
What is total quality management?
A) A philosophy of supplying customers with superior products and services
B) An exchange of information with suppliers and customers to create efficient and effective processes
C) A software system that integrates a company's functions, departments and data into a single system
D) A system which speeds the transformation of raw materials into finished products.
Q:
Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?
A) Supply chain management
B) Just-in-time (JIT)
C) Enterprise resource planning
D) Total quality management
Q:
Which of the following is a philosophy of providing customers with superior products and services?
A) Just-in-time (JIT) inventory management
B) Enterprise resource planning (ERP)
C) Supply chain management
D) Total quality management
Q:
Increased global competition has resulted in many companies moving their operations to other countries to be closer to new markets.
Q:
During the past century, many developed economies have shifted their focus from a service economy to a manufacturing economy.
Q:
Which of the following most accurately describes the term cost/benefit analysis?
A) Considering whether employees should be entitled to certain fringe benefits
B) Calculating the cost of holding fundraising benefits for charity
C) Considering whether the cost of products exceeds the market selling price
D) Considering whether the cost of calculating certain types of information provides a commensurate economic benefit
Q:
Q:
For assets and expenses, a debit increases the account.
Q:
____________________ represents the percentage of each sales dollar that remains after all expenses have been subtracted.
Q:
______________ and ____________ are the two major sources of capital.
Q:
_________________ measure the ability of a company to meet its current obligations.
Q:
____________ are fractions or percentages computed by dividing one account or line-item amount by another.
Q:
_____________________ expresses a line item as a percentage of some other line item for the same period.
Q:
_________________ expresses a line item as a percentage of some prior-period amount.
Q:
u200b
Kooper Co.
Income Statement
For the Year Ended December 31, Year 1
Revenues: u200b u200b
Net sales u200b $383,000
Less: Cost of goods sold u200b 121,700
Gross margin u200b $261,300
Less Operating expenses: u200b u200b
Selling expenses $41,500 u200b
Administrative expenses 56,500 u200b
Interest expense 12,000 u200b
Total expenses u200b 100,000
Net income u200b $151,300
Kooper Co.
Balance Sheet
December 31,Year 1
Assets
Current assets: u200b u200b u200b
Cash u200b $53,000 u200b
Accounts receivable u200b 64,300 u200b
Marketable securities u200b 10,500 u200b
Inventory u200b 93,250 u200b
Total current assets u200b u200b $221,050
Property, plant, and equipment: u200b u200b u200b
Store equipment $325,000 u200b u200b
Less Accumulated depreciation 162,100 $162,900 u200b
Office equipment $149,750 u200b u200b
Less Accumulated depreciation 72,750 77,000 u200b
Total property, plant, and equipment u200b u200b 239,900
Total assets u200b u200b $460,950
Liabilities
Current liabilities: u200b u200b u200b
Accounts payable u200b $97,200 u200b
Salaries payable u200b 28,700 u200b
Total current liabilities u200b u200b $125,900
Long-term liabilities: u200b u200b u200b
Note payable (due Year 1) u200b u200b 154,000
Total liabilities u200b u200b $279,900
Stockholders Equity
Total stockholders equity u200b u200b 181,050
Total liabilities and equity u200b u200b $460,950
There were 30,000 shares of common stock outstanding throughout Year 1. Dividends on common stock amounted to $21,000 and dividends on preferred stock amounted to $30,000. The market value of a share of common stock was $36 at the end of Year 1. The income tax rate is 40%. The accounts receivable and inventory accounts had beginning balances of $58,500 and $101,400 respectively. Total assets at the beginning of the year were $430,500.
Required: Calculate the following ratios:
A. Debt ratio
B. Debt-to-equity ratio
State what information each ratio is providing to the company.
Q:
u200b
Kooper Co.
Income Statement
For the Year Ended December 31, Year 1
Revenues: u200b u200b
Net sales u200b $383,000
Less: Cost of goods sold u200b 121,700
Gross margin u200b $261,300
Less Operating expenses: u200b u200b
Selling expenses $41,500 u200b
Administrative expenses 56,500 u200b
Interest expense 12,000 u200b
Total expenses u200b 100,000
Net income u200b $151,300
Kooper Co.
Balance Sheet
December 31,Year 1
Assets
Current assets: u200b u200b u200b
Cash u200b $53,000 u200b
Accounts receivable u200b 64,300 u200b
Marketable securities u200b 10,500 u200b
Inventory u200b 93,250 u200b
Total current assets u200b u200b $221,050
Property, plant, and equipment: u200b u200b u200b
Store equipment $325,000 u200b u200b
Less Accumulated depreciation 162,100 $162,900 u200b
Office equipment $149,750 u200b u200b
Less Accumulated depreciation 72,750 77,000 u200b
Total property, plant, and equipment u200b u200b 239,900
Total assets u200b u200b $460,950
Liabilities
Current liabilities: u200b u200b u200b
Accounts payable u200b $97,200 u200b
Salaries payable u200b 28,700 u200b
Total current liabilities u200b u200b $125,900
Long-term liabilities: u200b u200b u200b
Note payable (due Year 1) u200b u200b 154,000
Total liabilities u200b u200b $279,900
Stockholders Equity
Total stockholders equity u200b u200b 181,050
Total liabilities and equity u200b u200b $460,950u200b
There were 30,000 shares of common stock outstanding throughout Year 1. Dividends on common stock amounted to $21,000 and dividends on preferred stock amounted to $30,000. The market value of a share of common stock was $36 at the end of Year 1. The income tax rate is 40%. The accounts receivable and inventory accounts had beginning balances of $58,500 and $101,400 respectively. Total assets at the beginning of the year were $430,500.
Required: Calculate the following ratios:
A. return on sales
B. return on total assets
C. earnings per share
D. price-earnings ratio
Q:
u200b
Kooper Co.
Income Statement
For the Year Ended December 31, Year 1
Revenues: u200b u200b
Net sales u200b $383,000
Less: Cost of goods sold u200b 121,700
Gross margin u200b $261,300
Less Operating expenses: u200b u200b
Selling expenses $41,500 u200b
Administrative expenses 56,500 u200b
Interest expense 12,000 u200b
Total expenses u200b 100,000
Net income u200b $151,300
Kooper Co.
Balance Sheet
December 31, Year 1
Assets
Current assets: u200b u200b u200b
Cash u200b $53,000 u200b
Accounts receivable u200b 64,300 u200b
Marketable securities u200b 10,500 u200b
Inventory u200b 93,250 u200b
Total current assets u200b u200b $221,050
Property, plant, and equipment: u200b u200b u200b
Store equipment $325,000 u200b u200b
Less Accumulated depreciation 162,100 $162,900 u200b
Office equipment $149,750 u200b u200b
Less Accumulated depreciation 72,750 77,000 u200b
Total property, plant, and equipment u200b u200b 239,900
Total assets u200b u200b $460,950
Liabilities
Current liabilities: u200b u200b u200b
Accounts payable u200b $97,200 u200b
Salaries payable u200b 28,700 u200b
Total current liabilities u200b u200b $125,900
Long-term liabilities: u200b u200b u200b
Note payable (due Year 1) u200b u200b 154,000
Total liabilities u200b u200b $279,900
Stockholders Equity
Total stockholders equity u200b u200b 181,050
Total liabilities and equity u200b u200b $460,950
There were 30,000 shares of common stock outstanding throughout Year 1. Dividends on common stock amounted to $21,000 and dividends on preferred stock amounted to $30,000. The market value of a share of common stock was $36 at the end of Year 1. The income tax rate is 40%. The accounts receivable and inventory accounts had beginning balances of $58,500 and $101,400 respectively. Total assets at the beginning of the year were $430,500.
Required: Calculate the following ratios:
A. Current ratio
B. Quick ratio
C. Accounts receivable turnover ratio and accounts receivable turnover in days
D. Inventory turnover ratio and inventory turnover in days
Q:
________________ are the ongoing, day-to-day, revenue-generating activities of an organization.
Q:
u200b_____ is a premier credential for a forensic accountant.
a. u200bCertified Public Accountant
b. u200bCertified Financial Analyst
c. u200bCertified Management Accountant
d. u200bCertified Fraud Examiner
Q:
u200b_____ is the time that a unit of product spends in the value stream, from start to finish.u200bu200b
a. u200bLead time
b. u200bWait time
c. u200bCycle time
d. u200bMove time
Q:
u200b_____ are incurred to determine whether products and services are conforming to their requirements.
a. u200bPrevention costs
b. u200bAppraisal costs
c. u200bOpportunity costs
d. u200bSunk costs
Q:
_____ are costs incurred because products or services are produced that do not conform to specifications.
a. u200bControl costs
b. u200bFailure costs
c. u200bDetection costs
d. u200bAppraisal costs
Q:
u200b_____ immediately follows performance measurement within the business sustainability cycle.
a. u200bSustainability reporting
b. u200bSustainability assurance
c. u200bStakeholder engagement
d. u200bRisk management
Q:
_________ is defined as wrongful or criminal deception intended to result in financial or personal gain.u200b
Q:
_________ requires suppliers to deliver parts and materials just in time to be used in production, eliminating the need for materials inventories.u200b
Q:
_________ are incurred to prevent poor quality in the products or services being produced.u200b
Q:
_________ is the external verification that an independent party provides concerning the content of a corporate sustainability report and/or the process used in preparing a corporate sustainability report.u200b
Q:
u200b_________ refers to the voluntary public disclosure of qualitative and/or quantitative information about an organization's performance on one or more financial and/or nonfinancial dimensions.
Q:
u200b_________ can be defined as the difference between the inherent risk and the residual risk produced by the particular risk response.
Q:
_________ is measured as the benefit of risk response minus the cost of risk response.u200b
Q:
_______________________ are the future cash flows expressed in terms of their present value.
Q:
_______________________ ignore the time value of money.
Q:
_____________________ explicitly consider the time value of money.
Q:
______________________ are projects that, if accepted or rejected, do not affect the cash flows of other projects.
Q:
_______________________ are concerned with the process of planning, setting goals and priorities, arranging financing, and using certain criteria to select long-term assets.
Q:
________________ is the difference between realization and sacrifice, where realization is what the customer receives and sacrifice is what is given up in return.
Q:
_________________ emphasizes only effectiveness of implementation.
Q:
______________________ occurs whenever managers receive information about the effectiveness of strategy implementation as well as the validity of the assumptions underlying the strategy.
Q:
___________________ is after-tax operating income minus the dollar cost of capital employed.
Q:
_______________ indicate the minimum ROI necessary to accept an investment.
Q:
_________________ is found by dividing sales by average operating assets.
Q:
_____________ is the ratio of operating income to sales.
Q:
_____________________ refers to earnings before non-operating revenue, expenses, interest and taxes.
Q:
________________ decision making allows managers at lower levels to make and implement key decisions pertaining to their areas of responsibility.
Q:
______________________ is a prerequisite for assigning responsibility.
Q:
_______________________ is the difference between the actual variable overhead and applied variable overhead.
Q:
_________________ are capacity costs acquired in advance of usage.
Q:
______________ focuses on the continuous reduction of the manufacturing costs of existing products and processes.
Q:
_________________ occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.
Q:
____________________ is the difference between the actual and standard unit price of an input multiplied by the number of inputs used.
Q:
___________________ is calculated by multiplying the unit labor standard by the actual output.
Q:
________________ demands maximum efficiency and can be achieved only if everything operates perfectly.
Q:
___________________ can provide an initial guideline for setting standards, but should be used with caution because they can perpetuate existing inefficiencies.
Q:
_______________ often means the difference between success and failure or between above-average profits and lesser profits.
Q:
Allan Corporation has a sales budget for March of $440,000. About 10% are cash sales and the remainder is sold on account.
The company expects that 60% of credit sales will be collected in the month of the sale, 25% in the next month and 10% in the following month.
Materials purchased on account are expected to be $250,000. Allan pays 35% in the month of the purchase, 50% in the month following the purchase and the remaining 15% in the second month after the purchase.
Salaries and wages of the workers are approximately $45,000 per month. The employees are paid weekly so on average 95% of their wages are paid in the month to which they relate and the remaining 5% is paid in the following month.
Utilities average $4,300 per month.
Rent on the building is $9,000 per month.
Insurance is $3,000 per month and advertising costs are $1,000 per month.
February sales were $320,000 and purchases of materials in February were $170,000; January sales were $200,000 and purchases of materials in January were $130,000.
The cash balance on March 1st is $5,400.
Required:
A. Prepare a schedule of cash receipts
B. Prepare a schedule of cash payments (Accounts payable payments)
C. Prepare a cash budget
Q:
___________________ exists when a manager deliberately underestimates revenues or overestimates cost in an effort to make the future period appear less attractive in the budget than they think it will be in reality.
Q:
_____________________ allows subordinate managers considerable say in how the budgets are established.
Q:
_________________ are used to ensure that budgeted costs can be realistically compared with costs for actual levels of activity.
Q:
____________________ is individual behavior that is in basic conflict with the goals of the organization.
Q:
______________ are the means an organization uses to influence a manager to exert effort to achieve an organizations goals.
Q:
_________________ consists of beginning cash balance and the expected cash receipts.
Q:
__________________ is looking ahead to see what actions should be taken to realize particular goals.
Q:
________________ refers to the relative amount of each product manufactured by a company.
Q:
_______________________ focus on whether a product should be processed beyond the split-off point.
Q:
______________ is the point at which products become distinguishable after passing through a common process.
Q:
__________________ have common processes and costs of production up to a split-off point.
Q:
_____________________ are simply those factors that are hard to put a number on, including things like political pressure and product safety.
Q:
____________________ consists of choosing among alternatives with an immediate or limited end in view.
Q:
_____ are referred to as strictly variable costs.
a. Scarce resources
b. Implicit resources
c. Committed resources
d. Indirect resources
e. Flexible resources