1.A company had net cash flows fromoperations of $140,000, total cash flows of $600,000, and averagetotal assets of $2,400,000. The cash flow on total assets ratioequals(rounded): <?xml:namespace prefix = o ns ="urn:schemas-microsoft-com:office:office" />
A. 9.3%.
B. 17.1%.
C. 25.0%.
D. 4.3%.
E. 5.8%.
2. Use the following information and theindirect method to calculate the net cash provided or used byoperating activities:
Net income $12,800
Depreciation expense 11,600
Payment on mortgage payable 14,400
Gain on sale of land 7,900
Increase in merchandise inventory 2,100
Increase in accounts payable 6,500
Proceeds from sale of land 8,500
A. $35,300.
B. $12,400.
C. $20,900.
D. $7,900.
E. $40,900.
3. The statement of cash flows reports:
A. Assets,liabilities and equity
B. Revenues,gains, expenses and losses
C. Cashinflows and outflows for an accounting period
D. Equity,net income and dividends
E. Changes inequity
4. The statement of cash flows is:
A. Anothername for the statement of financial position
B. Afinancial statement that presents information about changes inequity during a period
C. Afinancial statement that reports the cash inflows and outflows foran accounting period and that classifies those cash flows asoperating activities, investing activities or financingactivities
D. Afinancial statement that lists the types and amounts of assets,liabilities and equity of a business on a specific date
E. A financialstatement that lists the types and amounts of the revenues andexpenses of a business for an accounting period
5.
A company had a profit margin of 15%. Ifnet income equaled $44,000 and average total assets equaled$335,000, how much were net sales? (Rounded to the nearest wholedollar.)
A. $293,333
B. $6,600
C. $223
D. $50,250
E. $291,000
6. A company has sales of $2,418,422, agross profit ratio of 25%, a days' sales in inventory ratio of13.8, and total current assets of $535,600. What is the endinginventory for the year?
A. $69,006
B. $328,640
C. $68,577
D. $133,900
E. $38,812
7. Net income divided by average totalassets is equal to the:
A. Profitmargin
B. Totalasset turnover
C. Return ontotal assets
D. Days'income in assets
E. Currentratio
8. The three most common tools of financialanalysis are:
A. Financialreporting, ratio analysis, vertical analysis
B. Ratioanalysis, horizontal analysis, financial reporting
C. Horizontal analysis, vertical analysis, ratio analysis
D. Trendanalysis, financial reporting, ratio analysis
E. Verticalanalysis, political analysis, horizontal analysis
9. Financial statements with data for twoor more successive accounting periods placed in columns side byside, sometimes with changes shown in dollar amounts and percents,are referred to as:
A. Period-to-period statements
B. Controlling statements
C. Successive statements
D. Comparative statements
E. Serialstatements
10. A company produces work boots. Thecompany received and produced an order for 4,600 pairs of boots.The following information is available regarding this order.
Process time 5.6 days
Inspection time. 6.5 days
Move time 6.3 days
Wait time 9.6 days
What is this company's manufacturing cycleefficiency?
A. 28days
B. 7.0days
C. 23.21%
D. 20%
E. 22.5%
11. The following information is availablefor Talking Toys, Inc., for the current year:
Direct materials used $7,500
Goods in process, January 1 48,000
Goods in process, December 31 44,000
Total Factory overhead 6,200
Direct labor used 28,500
The total manufacturing costs incurredduring the year were:
A. $46,200.
B. $44,200.
C. $7,500.
D. $42,200.
E. $89,000.
12. Compute cost of goods manufactured forthis period given the following amounts.
Ending finished goods inventory $66,000
Cost of Goods Sold 54,000
Beginning finished goods inventory60,000
A. $72,000
B. $48,000
C. $60,000
D. $66,000
E. $180,000.
13. Which of the following is neverincluded in direct materials costs?
A. Invoicecosts of direct materials.
B. Outgoingdelivery charges.
C. Materialsstorage costs.
D. Materialshandling costs.
E. Insuranceon stored material.
14. Which of the following costs would notbe classified as factory overhead?
A. Propertytaxes on maintenance machinery.
B. Expiredinsurance on factory equipment.
C. Wages ofthe factory janitor.
D. Metaldoorknobs used on wood cabinets produced.
E. Small toolsused in production.
15.
The S&S Company's manufacturing costsfor August are: direct labor, $13,000; indirect labor, $8,100;direct materials, $14,400; taxes on raw materials and work inprocess, $800; heat, lights and power, $900; and insurance on plantand equipment, $400. S&S Company's factory overhead incurredfor August is:
A. $2,100.
B. $24,600.
C. $21,100.
D. $10,200.
E. $13,000
16. A company has an overhead applicationrate of 115% of direct labor costs. How much overhead would beallocated to a job if it required total labor costing $15,000?
A. $115,000
B. $2,250
C. $17,250
D. $230,000
E. $13,250
17. When factory payroll costs are recordedin a job cost accounting system:
A. FactoryPayroll is debited and Goods in Process is credited.
B. Goods inProcess Inventory and Factory Overhead are debited and FactoryPayroll is credited.
C. Cost ofGoods Manufactured is debited and Direct Labor is credited.
D. DirectLabor and Indirect Labor are debited and Factory Payroll iscredited.
E. Goods inProcess is debited and factory payroll is credited.
18. Job order costing systems normallyuse:
A. Periodicinventory systems.
B. Perpetualinventory systems.
C. Realinventory systems.
D. Generalinventory systems.
E. All of theabove.
19. A job order cost accounting systemwould best fit the needs of a company that makes:
A. Shoes andapparel.
B. Paint.
C. Cement.
D. Custommachinery.
E. Pencils anderasers.
20.
At the beginning of the recent period,there were 2,100 units of product in a department, 1/3 completed.These units were finished and an additional 9,000 units werestarted and completed during the period. 1,200 units were still inprocess at the end of the period, 1/4 completed. Using the FIFOvaluation method, the equivalent units produced by the departmentwere:
A. 16,500units.
B. 12,300units.
C. 11,100units.
D. 10,700units.
E. 10,900units.
21.
A department had 2,300 units which were 30%complete in beginning Goods in Process Inventory. During thecurrent period, 24,000 units were transferred out. Ending Goods inProcess Inventory was 2,500 units which were 30% complete. Usingthe FIFO method, what are the equivalent units produced if alldirect material and direct labor are added uniformly throughout theprocess?
A. 24,060
B. 23,970
C. 24,750
D. 26,360
E. 26,500
22. To compute an equivalent unit ofproduction, one must be able to reasonably estimate:
A. Thepercentage of completion.
B. Unitscompleted.
C. Unitsstarted and completed.
D. Directlabor cost.
E. Materialscost.
23. Which of the following five types ofproducts is least likely to be produced in a process manufacturingsystem?
A. Compactdisks.
B. Slacksfor casual wear.
C. Baseballhats.
D. Calculators.
E. Oilpaintings.
26. Ridley Company estimates that overheadcosts for the next year will be $6,870,000 for indirect labor and$450,000 for factory utilities. The company uses machine hours asits overhead allocation base. If 160,000 machine hours are plannedfor this next year, what is the company's plantwide overheadrate?
A. $.02186per machine hour.
B. $42.9375per machine hour.
C. $45.75per machine hour.
D. $2.8125per machine hour.
E. $.3555 permachine hour.
