ACC 556 Final Exam Part 1 and 2

ACC 556 Final Exam Part 1 and 2 Click Link Below To Buy: http://hwcampus.com/shop/acc-556-final-exam-part-1-2/ Final Part 1 • Question 1 2 out of 2 points Under the corporate form of business organization • Question 2 2 out of 2 points Accountants do not attempt to measure the change in a plant asset's market value during ownership because • Question 3 2 out of 2 points Budget reports provide the feedback needed by management to see whether actual operations are on course. • Question 4 2 out of 2 points Intangible assets are rights, privileges, and competitive advantages that result from ownership of long-lived assets without physical substance. • Question 5 2 out of 2 points A corporation is not an entity that is separate and distinct from its owners. • Question 6 2 out of 2 points The market rate of interest is often called the • Question 7 2 out of 2 points A current liability is a debt that can reasonably be expected to be paid • Question 8 2 out of 2 points A budget can be used as a basis for evaluating performance. Vertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place. Bonds with a face value of $400,000 and a quoted price of 104¼ have a selling price of • Question 11 2 out of 2 points The current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time. • Question 12 2 out of 2 points On January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is • Question 13 2 out of 2 points One objective of the income statement is to separate the results of continuing operations from those of discontinued operations. • Question 14 2 out of 2 points All of the following are true regarding financial statement analysis ratios associated with liabilities except • Question 15 2 out of 2 points A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions. • Question 16 2 out of 2 points A master budget is most useful in evaluating a manager's performance in controlling costs. • Question 17 2 out of 2 points The master budget reflects management's long-term plans encompassing five years or more. • Question 18 2 out of 2 points The debt to assets ratio measures the percentage of the total assets provided by creditors. • Question 19 2 out of 2 points A company whose current liabilities exceed its current assets may have a liquidity problem. • Question 20 2 out of 2 points During 2014, Phelps Corporation reported net sales of $3,000,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps’s asset turnover ratio is • Question 21 2 out of 2 points Cash dividends are not a liability of the corporation until they are declared by the board of directors. • Question 22 2 out of 2 points Once cost is established for a plant asset, it becomes the basis of accounting for the asset unless the asset appreciates in value, in which case, market value becomes the basis for accountability. • Question 23 2 out of 2 points The book value of a plant asset is the difference between the • Question 24 2 out of 2 points On January 1, a machine with a useful life of five years and a residual value of $15,000 was purchased for $75,000. What is the depreciation expense for year 2 under straight-line depreciation? • Question 25 2 out of 2 points Which of the following is not properly classified as property, plant, and equipment? Final Part 2 • Question 1 2 out of 2 points A comparison with other companies that provides insight into a company's competitive position is most commonly known as which of the following types of comparisons? • Question 2 2 out of 2 points All of the following statements regarding changes in accounting principles are true except which of the following? • Question 3 2 out of 2 points A critical factor in budgeting for a service firm is to • Question 4 2 out of 2 points Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%. • Question 5 2 out of 2 points A flexible budget • Question 6 2 out of 2 points A manager of a cost center is evaluated mainly on • Question 7 2 out of 2 points The single most important output in preparing financial budgets is the • Question 8 2 out of 2 points Quincy Corp. earned controllable margin of $500,000 on sales of $6,400,000. The division had average operating assets of $5,200,000. The company requires a return on investment of at least 8%. How much is residual income? • Question 9 2 out of 2 points Laser Performance Inc. has the following information available (amount in thousands). • Question 10 2 out of 2 points The primary purpose of the statement of cash flows is to • Question 11 2 out of 2 points The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures. Total asset $400,000 Stockholders’ equity—common 200,000 Total stockholders’ equity 280,000 Sales revenue 120,000 Net income 25,000 Number of shares of common stock 8,000 Common dividends 9,000 Preferred dividends 6,000 What is Marsh’s payout ratio? 2 out of 2 points If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to • Question 13 2 out of 2 points Which one of the following is not a benefit of budgeting? • Question 14 2 out of 2 points Zoum Corporation had the following transactions during 2014: 1 - Issued $125,000 of par value common stock for cash. 2 - Recorded and paid wages expense of $60,000. 3 - Acquired land by issuing common stock of par value $50,000. 4 - Declared and paid a cash dividend of $10,000. 5 - Sold a long-term investment (cost $3,000) for cash of $3,000. 6 - Recorded cash sales of $400,000. 7 - Bought inventory for cash of $160,000. 8 - Acquired an investment in Zynga stock for cash of $21,000. 9 - Converted bonds payable to common stock in the amount of $500,000. 10 - Repaid a 6 year note payable in the amount of $220,000. What is the net cash provided by operating activities? • Question 15 2 out of 2 points Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle? • Question 16 2 out of 2 points Cochran Corporation, Inc. has the following income statement (in millions): COCHRAN CORPORATION, INC. Income Statement For the Year Ended December 31, 2014 Net Sales $240 Cost of Goods Sold 80 Gross Profit 160 Operating Expenses 65 Net Income $ 95 Using vertical analysis, what percentage is assigned to net income? Answer Selected Answer: 40% Correct Answer: 40% • Question 17 2 out of 2 points If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January? • Question 18 2 out of 2 points Which one of the following items is not necessary in preparing a statement of cash flows? • Question 19 2 out of 2 points Holden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report • Question 20 2 out of 2 points Which of the following income statement figures would probably be the best indicator of a company’s future performance? • Question 21 2 out of 2 points The date on which a cash dividend becomes a binding legal obligation is on the • Question 22 2 out of 2 points On the basis of the budget reports, • Question 23 2 out of 2 points Assume the following sales data for a company: 2015 $910,000 2014 $770,000 2013 700,000 If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014? • Question 24 2 out of 2 points A master budget consists of • Question 25 2 out of 2 points Ratios are used as tools in financial analysis Course Financial Accounting for Mgrs Test Week 11 Final Exam Part 2 (50 pts) AM Status Completed Attempt Score 46 out of 50 points Question 1 2 out of 2 points A manager of a cost center is evaluated mainly on Question 2 2 out of 2 points Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%. Sales $ 1,400,000 Controllable margin 160,000 Total average assets 4,000,000 Fixed costs 100,000 What is the ROI for the year? Question 3 2 out of 2 points Ratios are used as tools in financial analysis Question 4 2 out of 2 points Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle? Question 5 2 out of 2 points A master budget consists of Question 6 2 out of 2 points The date on which a cash dividend becomes a binding legal obligation is on the Question 7 2 out of 2 points If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January? Question 8 0 out of 2 points All of the following statements regarding changes in accounting principles are true except which of the following? Question 9 2 out of 2 points On the basis of the budget reports, Question 10 2 out of 2 points Holden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report Question 11 2 out of 2 points The primary purpose of the statement of cash flows is to Question 12 2 out of 2 points Cochran Corporation, Inc. has the following income statement (in millions): COCHRAN CORPORATION, INC. Income Statement For the Year Ended December 31, 2014 Net Sales $240 Cost of Goods Sold 80 Gross Profit 160 Operating Expenses 65 Net Income $ 95 Using vertical analysis, what percentage is assigned to net income? Answer Question 13 0 out of 2 points The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures. Total asset $400,000 Stockholders’ equity—common 200,000 Total stockholders’ equity 280,000 Sales revenue 120,000 Net income 25,000 Number of shares of common stock 8,000 Common dividends 9,000 Preferred dividends 6,000 What is Marsh’s payout ratio? Question 14 2 out of 2 points A flexible budget Question 15 2 out of 2 points A comparison with other companies that provides insight into a company's competitive position is most commonly known as which of the following types of comparisons? Answer Question 16 2 out of 2 points Assume the following sales data for a company: 2015 $910,000 2014 $770,000 2013 700,000 If 2013 is the base year, what is the percentage increase in sales from 2013 to 2014? Question 17 2 out of 2 points Laser Performance Inc. has the following information available (amount in thousands). Net Income $30,000 Average Total Liabilities 80,000 Average Current Liabilities 36,000 Cash Provided by Operations 48,000 Cash Sales 130,000 Capital Expenditures 22,000 Dividends Paid 6,000 What is the current cash debt coverage? Question 18 2 out of 2 points Which of the following income statement figures would probably be the best indicator of a company’s future performance? Question 19 2 out of 2 points Which one of the following is not a benefit of budgeting? Question 20 2 out of 2 points The single most important output in preparing financial budgets is the Question 21 2 out of 2 points Zoum Corporation had the following transactions during 2014: 1 - Issued $125,000 of par value common stock for cash. 2 - Recorded and paid wages expense of $60,000. 3 - Acquired land by issuing common stock of par value $50,000. 4 - Declared and paid a cash dividend of $10,000. 5 - Sold a long-term investment (cost $3,000) for cash of $3,000. 6 - Recorded cash sales of $400,000. 7 - Bought inventory for cash of $160,000. 8 - Acquired an investment in Zynga stock for cash of $21,000. 9 - Converted bonds payable to common stock in the amount of $500,000. 10 - Repaid a 6 year note payable in the amount of $220,000. Question 22 2 out of 2 points A critical factor in budgeting for a service firm is to Question 23 2 out of 2 points If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to Question 24 2 out of 2 points Which one of the following items is not necessary in preparing a statement of cash flows? Question 25 2 out of 2 points Quincy Corp. earned controllable margin of $500,000 on sales of $6,400,000. The division had average operating assets of $5,200,000. The company requires a return on investment of at least 8%. How much is residual income?