QuizQuestion 1 (1 point)A responsibility center that incurs costs (and expenses) and generates revenues is classified as a(n):Question 1 options:revenue center.investment center.profit center.cost center.Question 2 (1 point)The most useful measure for evaluating a manager’s performance in controlling revenues and costs in a profit center is:Question 2 options:contribution margin.controllable margin.contribution gross profit.contribution net income.Question 3 (1 point)Marley Corporation desires to earn target net income of $180,000. If the selling price per unit is $30, unit variable cost is $24, and total fixed costs are $720,000, the number of unQuestion 3 options:120,000.0060,000.0090,000.00150,000.00Question 4 (1 point)Oscar Corporation uses a process cost accounting system. Given the following data, compute the number of units transferred out during the current period.Beginning Work in processEnding Work in ProcessStarted into ProductionQuestion 4 options:10,000 units (½ complete)12,500 units (⅓ complete)75,000 units62,500.0072,500.0085,000.0075,000.00Question 5 (1 point)Pilgrim Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the perioEstimated annual overhead costActual annual overhead costEstimated machine hoursActual machine hoursQuestion 5 options:$1,200,000$1,150,000300,000280,000$1,150,000 applied and neitherunder- nor overapplied.$1,120,000 applied and $30,000overapplied.$1,120,000 applied and $30,000underapplied.$1,200,000 applied and $30,000overapplied.Question 6 (1 point)The following data has been collected for use in analyzing the behavior of maintenance costs of Sterling Corporation:MonthJanuaryFebruaryMarchAprilMaintenance Costs$121,000125,000128,000159,000Machine Hours20,00023,00024,00034,000MayJuneJuly168,000178,000181,00036,00038,00040,000Using the high-low method to separate the maintenance costs into their variable and fixed cost components, these components are:Question 6 options:$4 per hour plus $41,000.$3 per hour plus $61,000.$5 per hour plus $20,000.$5 per hour plus $30,000.Question 7 (1 point)Given the following data for Carlson Company, compute (A) total manufacturing costs and (B) costs of goods manufactured:Direct materials usedDirect laborManufacturing overheadOperating expensesQuestion 7 options:$120,00050,000150,000175,000(A)$320,000(A)$320,000(A)$310,000(A)$330,000Beginning workin process inEnding workprocessBeginningfinished goodsEnding finishedgoods$20,00010,00025,00015,000(B)$330,000(B)$310,000(B)$330,000(B)$340,000Question 8 (1 point)The production cost report shows both quantities and costs. Costs are reported in three sections: (1) costs accounted for, (2) unit costs, and (3) costs charged to department. The sQuestion 8 options:(1), (2), (3).(2), (3), (1).(1), (3), (2).(2), (1), (3).Question 9 (1 point)The starting point of a master budget is the preparation of the:Question 9 options:cash budget.budgeted balance sheet.production budget.sales budget.Question 10 (1 point)The most useful measure for evaluating the performance of the manager of an investment center is:Question 10 options:controllable margin.contribution margin.return on investment.income from operations.Question 11 (1 point)The cost classification scheme most relevant to responsibility accounting is:Question 11 options:direct vs. indirect.fixed vs. variable.semivariable vs. mixed.controllable vs. uncontrollable.Question 12 (1 point)Carter Company estimates its sales at 30,000 units in the first quarter and that sales will increase by 6,000 units each quarter over the year. It has, and desires, a 25% ending invenQuestion 12 options:$508,500.00$738,000.00$886,500.00$1,023,000.00Question 13 (1 point)Carter Company estimates its sales at 30,000 units in the first quarter and that sales will increase by 6,000 units each quarter over the year. It has, and desires, a 25% ending invenQuestion 13 options:45,750.0034,500.0043,500.0036,000.00Question 14 (1 point)Kemp Company incurs the following costs in producing 50,000 units of product:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead$200,000100,000200,000600,000An outside supplier has offered to supply the 50,000 units at $14.00 each. All of Kemp’s related variable costs, but only $400,000 of the fixed costs would be eliminated if the offerQuestion 14 options:savings of $400,000.loss of $400,000.savings of $200,000.loss of $200,000.Question 15 (1 point)To be classified as a short-term investment, an investment must meet the following criteria:Question 15 options:Readily MarketableNoNo Loss On DisposalYesReadily MarketableYesNo Loss On DisposalNoReadily MarketableNoNo Loss On DisposalNoReadily MarketableYesNo Loss On DisposalYesIntent to ConvertwithinOne Year orOperatingCycle, whichever islongerNoIntent to Convertwithin orOne YearOperatingCycle, whichever islongerYesIntent to ConvertwithinOne Year orOperatingCycle, whichever islongerYesIntent to Convertwithin orOne YearOperatingCycle, whichever islongerYesQuestion 16 (1 point)Lyndon Company has a production process where two products result from a joint processing procedure; both can be sold immediately or processed further. Given the following aQuestion 16 options:AllocatedJoint Cost$50$30ProductABBoth A and B.SellingPrice$100$50AdditionalProcessing Cost$90$25NewSelling Price$200$80Only A.Neither A nor B.Only B.Question 17 (1 point)A flexible budget:Question 17 options:can be considered a series of relatedstatic budgets.typically uses an activity indexdifferent from that used in developingthe predetermined overhead rate.is also called a static budget.can be prepared for sales orproduction budgets, but not for anoperating expense budget.Question 18 (1 point)Leah Company’s equipment account increased $400,000 during the period; the related accumulated depreciation increased $30,000. New equipment was purchased at a cost of $Question 18 options:$250,000.00$280,000.00$320,000.00$210,000.00Question 19 (1 point)Which of the following would not be included in the operating activities section of a statement of cash flows?Question 19 options:Cash outflows to governments fortaxes.Cash inflows from returns on loans(i.e., interest).Cash inflows from returns on equitysecurities (i.e., dividends).Cash outflows to reacquire treasurystock.Question 20 (1 point)The concept of significant influence must be satisfied before which accounting method can be used by an investor?Question 20 options:All of these answers are correct.Consolidated financial statements.Cost.Equity.Question 21 (1 point)Which of the following pairs of terms in the area of financial statement analysis are synonymous?Question 21 options:Horizontal — TrendVertical — RatioHorizontal — RatioRatio — TrendQuestion 22 (1 point)Which of the following statements is true?Question 22 options:Question 23 (1 point)Trading securities are securities thatare not intended to be sold in thefuture.Trading securities are reported at costin the balance sheet.Trading securities are securitiesbought and held primarily for sale inthe near term. are debt securitiesTrading securitiesthat the investor has the intent tohold to maturity.Dividends received are credited to what account under the equity method and cost method, respectively?Question 23 options:Equity MethodStock InvestmentsEquity MethodStock InvestmentsEquity MethodDividend RevenueEquity MethodDividend RevenueCost MethodDividend RevenueCost MethodStock InvestmentsCost MethodStock InvestmentsCost MethodDividend RevenueQuestion 24 (1 point)In accounting for available-for-sale securities, the Unrealized Loss on Available-for-Securities account should be classified as a:Question 24 options:deduction in the stockholders’ equitysection of the balance sheet.loss on the income statement.contra asset on the balance sheet.liability on the balance sheet.Question 25 (1 point)Reporting investments at fair value is applicable to:Question 25 options:held-to-maturity securities.trading securities only.available-for-sale securities only.both available-for-sale and tradingsecurities.Question 26 (1 point)Sailor Corporation has the following stock outstanding:6% Preferred, $100 parCommon Stock, $50 par$1,000,0002,000,000No dividends were paid the previous 2 years. If Sailor declares $250,000 of dividends in the current year, how much will common stockholders receive if the preferred stock is cumQuestion 26 options:$60,000.00$70,000.00$180,000.00$190,000.00Question 27 (1 point)The statement of cash flows is a(n):Question 27 options:required basic financial statement.required supplemental financialstatement.optional basic financial statement.optional supplementary statement.Question 28 (1 point)The directors of Bennett Corp. are trying to decide whether they should issue par or no par stock. They are considering three alternatives for their new stock, which they are assumQuestion 28 options:(A)$60,000(A)$60,000(A)$480,000(A)$300,000(B)$480,000(B)$300,000(B)$480,000(B)$60,000(C)$480,000(C)$480,000(C)$480,000(C)$480,000Question 29 (1 point)Victor Corp. reacquired, but did not retire, 20,000 shares of its $2 par common stock at a cost of $13 per share on April 30, 2014. The stock was originally issued at $11 per share. OQuestion 29 options:$280,000.00$60,000.00$100,000.00$180,000.00Question 30 (1 point)What is the effect on total paid-in capital of a stock dividend and a stock split, respectively?Question 30 options:Stock DividendDecreaseStock DividendIncreaseStock DividendDecreaseStock DividendNo effectStock SplitNo effectStock SplitNo effectStock SplitDecreaseStock SplitNo effectQuestion 31 (1 point)Which of the following is reported in the retained earnings statement as an adjustment to the beginning balance?Question 31 options:Extraordinary items.Discontinued operations.Other revenues and expenses.Prior period adjustments.Question 32 (1 point)Which of the following should be classified as an extraordinary item?Question 32 options:Effects of major casualties notinfrequent in the area. amount ofWrite-off of a significantreceivables.to a bitter, lengthy laborLosses duestrike.Loss from the expropriation offacilities by a foreign government.Question 33 (1 point)Bonds that mature in installments are called:Question 33 options:callable bonds.serial bonds.registered bonds.term bonds.Question 34 (1 point)A Discount on Bonds Payable account:Question 34 options:is an adjunct account to BondsPayable. interest expense to be lesswill causethan cash interest payable. the bondis increased over the life ofuntil it equals the bond’s face value.is a contra account to Bonds Payable.Question 35 (1 point)Dina Corp. had 500,000 shares of common stock outstanding throughout the year. Dina reported net income of $2,400,000 and declared preferred stock dividends of $400,000 duQuestion 35 options:$0.80.$4.00.$4.80.$6.00.Question 36 (1 point)In order to be considered extraordinary, an item must be:Question 36 options:infrequent and unusual.unusual and uninsured.uninsured and infrequent.infrequent and uninsured.Question 37 (1 point)If the market rate of interest is lower than the stated rate, bonds will sell at an amount:Question 37 options:equal to face value.not determinable from the giveninformation.higher than face value.lower than face value.Question 38 (1 point)Which of the following combinations presents correct examples of liquidity, profitability, and solvency ratios, respectively?Question 38 options:LiquidityReceivables turnoverProfitabilitySolvencyReturn on operating Times interestassetsearnedLiquidityQuick ratioLiquidityCurrent ratioLiquidityInventory turnoverProfitabilityPayout ratioProfitabilityInventory turnoverProfitabilityInventory turnoverSolvencyReturn onoperating assetsSolvencyDebt to equitySolvencyTimes interestedearnedQuestion 39 (16 points)NEEDMatch the term that best represents the definition or statement given below. No term should be used more than once, and not all terms will be used.Please note: LEO will randomize the presentation of the choices with each attempt.Question 39 options:Column 1Standards based on optimum levels of performanceunder perfect operating conditions.12The amount of revenue remaining after deductingvariable costs.3The disposal of a significant segment of a business.4Measures of the short-term ability of an enterprise topay its maturing obligations and to meet unexpectedneeds for cash.56Measures the ability of the company to survive over along period of time.78Costs that vary in total directly and proportionatelywith changes in the activity level.9A pro rata distribution of the corporation’s own stockto stockholders.10Column 2Accounts receivableBook value per shareCapital leaseContribution marginContribution margin ratioControllable costsCost accountingCost methodDiscontinued operationsEarnings per share11 Equity methodThe differences between actual costs and standardcosts.12 Extraordinary itemsThe portion of retained earnings that is currentlyunavailable for dividend declarations.13 Fixed costs14 Held-to-maturity securitiesThe net income earned by each share of outstandingcommon stock.15 Horizontal analysisEvents and transactions that are unusual in natureand infrequent in occurrence.16 Ideal standards17 Liquidity ratiosThe correction of an error in previously issuedfinancial statements.18 Noncontrollable costsCosts that a manager has the authority to incurwithin a given period of time.19 Normal standards20 Operating leaseDebt securities that the investor has the intent andability to hold to maturity.21 Overhead budget varianceThe difference between actual overhead andbudgeted overhead at actual production level.22 Overhead volume varianceAn accounting method in which the investment instock is initially recorded at cost and cash dividendsare credited to Dividend Revenue.23 Parent company24 Period costs25 Prior period adjustment26 Product costs27 Retained earnings appropriation28 Solvency ratios29 Stock dividend30 Stock split31 Variable costs32 VariancesQuestion 40 (1 point)Matthew Corporation manufactures paper shredding equipment. Each paper shredder has a standard materials cost of 20 pounds at $7.50 per pound or $150.00 in total. 40,000 pUse “U” or “F” to indicate whether the variance is unfavorable or favorable. Do not show your work or include any additional text with your answer. For example, if your answer isQuestion 40 options:Question 41 (1 point)NEEDMatthew Corporation manufactures paper shredding equipment. Each paper shredder has a standard materials cost of 20 pounds at $7.50 per pound or $150.00 in total. 40,000 pUse “U” or “F” to indicate whether the variance is unfavorable or favorable. Do not show your work or include any additional text with your answer. For example, if your answer isQuestion 41 options:NEEDQuestion 42 (1 point)Matthew Corporation manufactures paper shredding equipment and uses a process costing system. 2,000 units were in process at the beginning of the period, 60% complete. 20,0Do not show your work or include any additional text with your answer. For example, if your answer is 10,000, you should enter 10,000.Question 42 options:21,600Question 43 (1 point)Matthew Corporation manufactures paper shredding equipment and sells each unit for $500. Variable costs per unit equal $300. Total fixed costs equal $800,000. Matthew is curreDo not show your work or include any additional text with your answer. For example, if your answer is $10,000, you should enter $10,000.Question 43 options:$2,000,000Question 44 (1 point)Matthew Corporation manufactures paper shredding equipment and sells each unit for $500. Variable costs per unit equal $300. Total fixed costs equal $800,000. Matthew is curreDo not show your work or include any additional text with your answer. For example, if your answer is 10,000, you should enter 10,000.Question 44 options:6,000Question 45 (1 point)Matthew Corporation manufactures paper shredding equipment and sells each unit for $500. Variable costs per unit equal $300. Total fixed costs equal $800,000. Matthew is curreExpress your answer as a percentage, and do not show your work or include any additional text with your answer. For example, if your answer is 60%, you should enter 60%.Question 45 options:20%of units that the company must sell to earn its target net income is:period:The sections are listed in the following order:nventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter follownventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter followoffer is accepted. Acceptance will result in a:ing additional per unit information, determine which of the products should be processed further.of $700,000 and used equipment was sold at a loss of $20,000. Depreciation expense was $100,000. Proceeds from the sale of the used equipment were:cumulative?ssuming will be issued at $8 per share. The alternatives are: (A) $5 par value, (B) no par with a $1 stated value, and (C) no par, no stated value. If 60,000 shares are issued, what amare. On January 10, 2015, the 20,000 shares were sold at $16 per share. The sales entry should include a credit to Paid-in Capital from Treasury Stock for:0 during the year. Dina should present earnings per share of:000 pounds of materials were purchased for $320,000 during the period and 39,000 pounds were used in the production of 2,000 good units. What is the direct materials price varier is $100,000 unfavorable, you should enter $100,000 U.000 pounds of materials were purchased for $320,000 during the period and 39,000 pounds were used in the production of 2,000 good units. What is the direct materials usage varer is $100,000 unfavorable, you should enter $100,000 U.20,000 units were started into production during the period; 1,000 were in process at the end of the period, 60% complete. What are the equivalent units for conversion costs?currently selling 5,000 units per period and would like to earn net income of $400,000. What is the breakeven point in dollars?currently selling 5,000 units per period and would like to earn net income of $400,000. How many sales units are necessary to attain the desired income?currently selling 5,000 units per period and would like to earn net income of $400,000. What is the margin of safety ratio for current operations?owing sale. Cash collections for the third quarter are budgeted at:owing sale. Production in units for the third quarter should be budgeted at:amount will be credited to the common stock account in each of these cases?ariance?variance?

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