ACCT 2001 Midterm: ACCT2001 Term Test 2 2017 Spring Solutions
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Use the following data to answer questions 1 to8.
Adm2341 Ltd had the following data for its year ofoperation:
DM used | 32 000 $ |
DL | 20 000 $ |
Manufacturing variable overhead cost | 12 000 $ |
Manufacturing fixed overhead cost | 16 000 $ |
Variable operating expenses | 4 000 $ |
Fixed operating expenses | 6 000 $ |
Finished goods inventory-ending | 600 unités |
Sales (45 $ per unit) | 63 000 $ |
1. What is the unitproduct cost for the month under variable costing?
a) 32 $ 40 $
b) 45 $
c) 26 $
d) None of the above
2. What is the unit product cost forthe month under absorption costing method?
a) 32 $
b) 40 $
c) 45 $
d) 26 $
e) None of the above
3. Under absorption costing, what wasthe value of the ending inventory for the year?
a) 27 000 $
b) 24 000 $
c) 15 600 $
d) 19 200$
e) None of theabove
4. Under variable costing, what wasthe value of the ending inventory for the year?
a) 27 000 $
b) 24 000 $
c) 15 600 $
d) 19 200 $
e) None of theabove
5. Undervariable costing, what was the cost of goods sold for the year?
a) 56 000 $
b) 63 000 $
c) 44 800 $
d) 36 400 $
e) None of theabove
6. Undervariable costing, what was the contribution margin for theyear?
a) 18 200 $
b) 14 200 $
c) 3 000 $
d) 22 600 $
e) None of theabove
7. Under variablecosting, what was the reported operating income (loss) for theyear?
a) 14 200 $
b) 8 200 $
c) (3 000) $
d) (7 800 $) $
e) None of theabove
8. Under absorptioncosting, what was the reported operating income (loss) for theyear?
a) 14 200 $
b) 8 200 $
c) (3 000) $
d) (7 800 $) $
e) aucune desréponses ci-dessus
Question 11
The two most useful financial statements are ____ and____.
A. | federal tax returns; income and expense statements | |
B. | balance sheets; wills | |
C. | cash-flow statements; balance sheets | |
D. | wills; federal tax returns |
Question 12
Which of the following is the best example of awell-stated financial goal?
A. | Pay off your credit cards as soon as possible | |
B. | Purchase a three-bedroom home in five years | |
C. | Buy a $3,000 computer in 18 months | |
D. | Buy a $2,000 stereo |
Question 13
The first step in the budgeting process is
A. | setting financial goals. | |
B. | evaluating. | |
C. | organizing. | |
D. | decision making. |
Question 13
The first step in the budgeting process is
A. | setting financial goals. | |
B. | evaluating. | |
C. | organizing. | |
D. | decision making. |
Which of the following is a characteristic of a cash-flowstatement?
A. | It shows if you were able to live within your income for theperiod covered. | |
B. | All of these. | |
C. | It covers a period of time, usually one month or one year. | |
D. | The statement includes three sections: income, expenses, andsurplus (or deficit). |
Question 15
The formula for calculating net worth is
A. | income minus liabilities. | |
B. | assets minus expenses. | |
C. | income minus expenses. | |
D. | assets minus liabilities. |
Question 16
Food, clothing, and entertainment are examples of
A. | long-term liabilities. | |
B. | short-term liabilities. | |
C. | fixed expenses. | |
D. | variable expenses. |
Question 17
To construct a balance sheet, you need to compile dollar valuesfor your assets and liabilities. Good sources from which to beginare
A. | checkbook or savings account records. | |
B. | all of these. | |
C. | investments. | |
D. | receipts of various payments. |
Question 18
Discretionary income is used to pay for things like
A. | housing. | |
B. | vacations. | |
C. | utilities. | |
D. | food. |
Question 19
A short-term goal is one that is projected to be acheived withinhow much time?
A. | one month | |
B. | three months | |
C. | one year | |
D. | five years |
Question 20
The advantages of having organized financial records include
A. | helping you take advantage of all available tax deductions. | |
B. | all of these. | |
C. | enabling you to review the results of financialtransactions. | |
D. | helping you save money as well as make money. |
Rent and insurance payments are examples of
A. | variable expenses. | |
B. | fixed expenses. | |
C. | long-term liabilities. | |
D. | short-term liabilities. |
Matthew is concerned about his ability to save money regularlyand has prepared a budget. Which of the following budgetclassifications would be most appropriate for Matthew'sbudget?
A. | Savings as a fixed expenditure | |
B. | Saving whatever may be left over | |
C. | Savings as a variable expenditure | |
Question 3
A successful financial plan includes
A. | explicitly stated financial goals. | |
B. | specified values that underlie the plan. | |
C. | all of these. | |
D. | logical and consistent financial strategies. |
Question 4
A cash-flow statement is also known as a(n) ____ statement.
A. | taxable income | |
B. | net worth | |
C. | income and expense | |
D. | asset-and-liability |
Question 5
A long-term goal is one that is projected to be acheived beyondhow much time?
A. | five year | |
B. | ten years | |
C. | six months | |
D. | one year |
Question 6
A balance sheet includes ____, ____, and ____.
A. | income; expenses; net worth | |
B. | assets; expenses; liabilities | |
C. | income; liabilities; net worth | |
D. | assets; liabilities; net worth |
Question 7
Disposable income is income
A. | after all employer withholding including taxes. | |
B. | minus fixed expenditures. | |
C. | before taxes. | |
D. | after all employer withholding except taxes. |
Question 8
Which of the following would be classified as a long-termliability?
A. | Education loan balance | |
B. | Credit card debt | |
C. | Bank card debt | |
D. | All of these |
Question 9
Stephen Scott's monthly pay stub indicates that his monthlygross income is $3,800. However, $800 is withheld for income andSocial Security taxes, $200 is withheld for his health anddisability insurance, and another $200 is contributed to hispension plan. How much is Stephen's disposable income?
A. | $2,800 | |
B. | $3,000 | |
C. | $2,600 | |
D. | $3,800 |
Question 10
Which of the following provides information about a person'sfinancial condition at a specific point in time?
A. | Federal tax return | |
B. | Balance sheet | |
C. | All of these | |
D. | Income and expense statement |
Question 11
The two most useful financial statements are ____ and____.
A. | federal tax returns; income and expense statements | |
B. | balance sheets; wills | |
C. | cash-flow statements; balance sheets | |
D. | wills; federal tax returns |
Question 12
Which of the following is the best example of awell-stated financial goal?
A. | Pay off your credit cards as soon as possible | |
B. | Purchase a three-bedroom home in five years | |
C. | Buy a $3,000 computer in 18 months | |
D. | Buy a $2,000 stereo |
Question 13
The first step in the budgeting process is
A. | setting financial goals. | |
B. | evaluating. | |
C. | organizing. | |
D. | decision making. |
Question 13
The first step in the budgeting process is
A. | setting financial goals. | |
B. | evaluating. | |
C. | organizing. | |
D. | decision making. |
Which of the following is a characteristic of a cash-flowstatement?
A. | It shows if you were able to live within your income for theperiod covered. | |
B. | All of these. | |
C. | It covers a period of time, usually one month or one year. | |
D. | The statement includes three sections: income, expenses, andsurplus (or deficit). |
Question 15
The formula for calculating net worth is
A. | income minus liabilities. | |
B. | assets minus expenses. | |
C. | income minus expenses. | |
D. | assets minus liabilities. |
Question 16
Food, clothing, and entertainment are examples of
A. | long-term liabilities. | |
B. | short-term liabilities. | |
C. | fixed expenses. | |
D. | variable expenses. |
Question 17
To construct a balance sheet, you need to compile dollar valuesfor your assets and liabilities. Good sources from which to beginare
A. | checkbook or savings account records. | |
B. | all of these. | |
C. | investments. | |
D. | receipts of various payments. |
Question 18
Discretionary income is used to pay for things like
A. | housing. | |
B. | vacations. | |
C. | utilities. | |
D. | food. |
Question 19
A short-term goal is one that is projected to be acheived withinhow much time?
A. | one month | |
B. | three months | |
C. | one year | |
D. | five years |
Question 20
The advantages of having organized financial records include
A. | helping you take advantage of all available tax deductions. | |
B. | all of these. | |
C. | enabling you to review the results of financialtransactions. | |
D. | helping you save money as well as make money. |