...paycheck. • They provide management with information about the company's past performance. • They help communicate goals and provide a basis for evaluation. • They guarantee the company will be profitable if it meets its objectives. 2. A common starting point in the budgeting process is • a clean slate, with no expectations. • expected future net income. • past performance. • to motivate the sales force. Want more details? Download now ACC 561 Week 5 Quiz 3. Which of the following statements about budget acceptance in an organization is true? • The most widely accepted budget by the organization is the one prepared by top management. • Budgets are hardly ever accepted by anyone except top management. • The most widely accepted budget by the organization is the one prepared by the department heads. • Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process. 4. What is budgetary control? • The process of providing information on budget differences to lower level managers • Another name for a flexible budget • The degree to which the CFO controls the budget • The use of budgets in controlling operations Quiz Answers just a click away ACC 561 Week 1 Quiz 5. The comparison of differences between actual and planned results • is done by the external auditors. • appears on the company's external financial statements. • is usually done orally in departmental meetings. • appears on periodic...
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...a cost that • may or may not be incurred, depending on management's discretion. • occurs at various times during the year. • varies in total in proportion to changes in the level of activity. • varies per unit at every level of activity. 2. An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: Unit Variable Cost Unit Fixed Cost • Increases Decreases • Remains constant Remains constant • Decreases Remains constant • Remains constant Decreases Want help? Click to download ACC 561 Week 4 Quiz 3. A fixed cost is a cost which • remains constant per unit with changes in the level of activity. • remains constant in total with changes in the level of activity. • varies inversely in total with changes in the level of activity. • varies in total with changes in the level of activity. 4. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? • 80% • 20% • 30% • 70% Want more details? Download now ACC 561 Week 5 Quiz 5. Contribution margin • is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. • equals sales revenue minus variable costs. • is always the same as gross profit margin. • excludes variable selling costs...
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... • generally receives favorable tax treatment relative to a corporation. 2. Most business enterprises in the United States are • government units. • partnerships. • proprietorships and partnerships. • corporations. Want more details? Download now ACC 561 Week 1 Quiz 3. A business organized as a separate legal entity is • government unit. • partnership. • corporation. • proprietor. 4. Which of the following is the best definition of an internal user of accounting information? • Creditors like banks that use accounting information to evaluate the risk of lending money. • Managers who use accounting information to plan, organize, and run a business. • Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits. • Investors who use accounting information to decide whether to buy or sell stock. Want help? Click to download ACC 561 Week 2 Quiz 5. Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules? • Labor Unions • Management • Taxing authorities • Regulatory agencies 6. Which of the following groups uses accounting information to determine whether the company can pay its obligations? • Chief Financial Officer • Creditors • Investors in common stock • Marketing managers Want help? Click to download ACC 561 Week 4 Quiz 7. Which of the following financial statements is divided into major categories...
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... • provide information to stockholders for investment decisions. 2. The two basic types of cost accounting systems are • job order and process cost systems. • job order and batch systems. • process cost and batch systems. • job order and job accumulation systems. Quiz Answers just a click away ACC 561 Week 3 Quiz 3. A process cost system would most likely be used by a company that makes • breakfast cereal. • motion pictures. • college graduation announcements. • repairs to automobiles. 4. Which of the following would be accounted for using a job order cost system? • The refining of petroleum. • The production of automobiles. • The production of personal computers. • The construction of a new campus building. Quiz Answers just a click away ACC 561 Week 1 Quiz 5.The flow of costs in a job order cost system • measures product costs for a set time period. • generally follows a LIFO cost flow assumption. • involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done. • cannot be measured until all jobs are complete. 6. The entry to record the acquisition of raw materials on account is • Raw Materials Inventory Accounts Payable • Work in Process Inventory Accounts Payable • Manufacturing Overhead Raw Materials Inventory Accounts Payable • Accounts Payable Raw Materials Inventory Want more details? Download now ACC 561 Week 5 Quiz 7. Time tickets should be approved by • the payroll department...
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...3 711 Chapter Tax Accounting TRUE-FALSE QUESTIONSCHAPTER 13 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. A partnership may adopt any tax year without IRS permission. A corporation ling its rst return must annualize its income if the tax period is less than 12 months. A taxable year may be as short as one day and may exceed 366 days. Under no circumstances may a corporation change its scal year without IRS permission. A taxpayer engaged in two or more separate and distinct businesses may use different accounting methods for both businesses. A grocery store may use the cash basis of reporting sales. In general, a CPA on the cash basis method will never have a bad debt deduction. A cash basis taxpayer may deduct prepaid business expenses currently. Both cash and accrual basis taxpayers will be taxed on a dividend when it is actually received. Computing cost of goods soldand being on the accrual basis are independent of each other. If, in the IRSs opinion, the taxpayers books do not clearly reect income, the IRS may revise them so that they do. Taxpayers must generally obtain the permission of the IRS to change accounting methods. A correction of an error in a tax return is usually considered a change in accounting method. The IRS can require a change in accounting methods if the method used by a taxpayer does not clearly reect income. IRS permission is not required for a change from FIFO to LIFO. The installment method cannot be used unless the total selling price...
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