Business - Accounting And Taxation; Helping Quiz 3

1

<img src="https://sciemce.com/files/4/ppg__550826191151__f1q56g1.jpg" alt="" style="vertical-align: 0.0px;" height="416" width="630" /><img src="https://sciemce.com/files/4/ppg__550826191151__f1q56g2.jpg" alt="" style="vertical-align: 0.0px;" height="423" width="632" /><img src="https://sciemce.com/files/4/ppg__550826191151__f1q56g3.jpg" alt="" style="vertical-align: 0.0px;" height="427" width="629" /><img src="https://sciemce.com/files/4/ppg__550826191151__f1q56g4.jpg" alt="" style="vertical-align: 0.0px;" height="409" width="630" />Jackson has a loan that requires a $17,600 lump sum payment at the end of four years. The interest rate on the loan is 5%, compounded annually. How much did Jackson borrow today? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from

2

Selling expenses are found in the cost of goods sold

3

Match the items below to the type of cost (a-c).

4

The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.7hoursStandard labor rate$18.10per hourThe following data pertain to operations concerning the product for the last month: Actual hours worked 3,800hoursActual total labor cost$67,640 Actual output 500unitsWhat is the labor efficiency variance for the month?

5

Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales uncollected for Year 2. (Use 365 days a year.) Year 2Year 1 Cash$37,900 $32,650 Short-term investments 94,000 62,000 Accounts receivable, net 87,500 81,500 Merchandise inventory 123,000 127,000 Prepaid expenses 12,500 10,100 Plant assets 390,000 340,000 Accounts payable 111,400 109,800 Net sales 713,000 678,000 Cost of goods sold 392,000 377,000

6

What are non-sufficient funds (NSF) checks? How does a NSF check affect a bank reconciliation?

7

Cost of goods sold is often the largest expense on a merchandising company income statement.

8

Quinton Products manufactures digital cameras. Currently, the company manufactures its own carrying case for the cameras at the following unit costs: Direct materials $2.00 Direct labor $2.00 Variable overhead $1.00 Fixed overhead $1.00 Another manufacturer has offered to supply Quinton with the case at a cost of $6 each. Quinton currently makes 9,000 cases annually. If Quinton accepts the offer,

9

Who may bring civil litigation against an auditor?

10

Cerrato Company has assets of $350,000, liabilities of $130,000, and retained earnings of $180,000 . How much is total owners' equity?

11

Jenner Corporation paid its annual dividend. This transaction represents a(n) ________

12

With respect to colleges and universities, if a tuition or fee reduction is an employee benefit it should be treated as a compensation expense, rather than a discount.

13

Which of the following intangible assets could not be sold by a business to raise needed cash for a capital project?

14

In which systems analysis step do analysts conduct an extensive study of the present system to gain a thorough understanding of how it works?

15

Barrington Bears has developed the following sales forecasts for the next few months. January 500, February 600, March 720, April 800 and May 770. BB has 80 bears on hand on Dec. 31. Normal ending inventory policy is to hold 20% of next month’s sales. Each bear needs .8 yards of fabric and two pounds of stuffing. Fabric is budgeted to cost $15 per yard and stuffing $4 per pound. Direct labor is paid $18 per hour. Each bear takes 40 minutes to hand-finish. Variable overheads total $21 per direct labor hour. Fixed overheads amount to $25,000 per month. Eighty yards of fabric and 100 pounds of stuffing were in stock at year-end. Ten percent and 25% of next month’s stuffing and fabric needs respectively are planned for raw materials ending inventory each month.

16

An unmodified audit opinion rendered on a government unit's basic financial statements means those statements:

17

To perform cost-volume-profit analysis, a company must be able to separate costs into fixed and variable components

18

The average-cost method under a periodic inventory system relies on a simple average calculation as total cost of goods available for sale divided by the total units available for sale

19

Derivative instruments acquired to hedge exposure to variability in expected future cash are _________________________ hedges

20

This company purchased a semi truck at the beginning of 2011 at a cost of $100,000 . The truck had an estimated life of 5 years, an estimated residual value of $20,000, and will be depreciated using the straight-line method. On January 1, 2013, the company made major repairs of $30,000 to the truck that extended the life 3 years. Thus, starting with 2013, the truck has a remaining life of 5 years

21

A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold 380,000Sales revenue$2,736,000Variable manufacturing expense$1,349,000Fixed manufacturing expense$336,000Variable selling and administrative expense$399,000Fixed selling and administrative expense$372,000Net operating income$280,000 The company's degree of operating leverage is closest to:

22

Why might it be unfavorable for a firm to reduce repairs and maintenance, advertising, and research and development expenses?

Spending too little in these areas can impact the firm negatively. In capital intensive industries it is important for management to properly maintain plant and equipment. Expenditures in this area should correspond to the level of investment in capital equipment and to the age and condition of the assets. Poorly maintained equipment will result in waste and lost time and possibly poor quality products. Customers may choose to purchase products elsewhere, resulting in a decline of sales.Advertising is critical for certain types of industries. For example, firms operating in the beverage industry generally gain market share through extensive advertising. High-technology and pharmaceutical firms would cease to exist if they did not spend a certain amount on research and development. These industries depend on developing new products each year.

23

A company has provided the following data concerning a proposed project (Ignore income taxes.): Initial investment$10,000 Annual cost savings$? Salvage value$0 Life of the project 8yearsDiscount rate 14%Net present value$1,300 Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.The annual cost savings must be closest to: (Round your intermediate calculations to 3 decimal places.)

24

What are CAATS? Identify five of them.

25

Caneer Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit$240.00Variable expenses per unit$81.60Fixed expense per month$997,920 The unit sales to attain the company's monthly target profit of $44,000 is closest to:

26

Define fair market value as it relates to property transactions

27

Tax research typically occurs as part of the tax compliance process; it is rarely important in tax planning.

28

In a telecommunications environment, line errors can be detected by using an echo check

29

Stjohns Corporation uses a job-order costing system and has provided the following partially completed summary T-accounts for the just completed period: Work In ProcessBal22,000Credits534,000Direct materials85,000 Direct labor161,000 Overhead applied273,000 Bal.? Manufacturing OverheadDebits200,000Credits? Manufacturing overhead for the period was:

30

If Bowman Company is using FIFO, how would the accountant compute cost of goods sold when recording a sale under the perpetual inventory system?

31

Which of the following tables would most likely have a composite key?

32

Which one of the following statements best describes an ordinary annuity?

33

Which of the following statements is NOT correct concerning the Cash Budget?

34

For each of the following accounts, state type of account and the normal account balance. Assume a periodic inventory system.

35

When a company discontinues a segment of its business, the income statement should report income (loss) from continuing operations and income (loss) from discontinued operations

36

To assess management's integrity, the auditor may interview management.

37

Fixed costs should not be ignored when evaluating how well a manager has controlled costs.

38

The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0. Based on this information, an investor can conclude:

39

The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales$830,000Variable expenses$390,000Fixed manufacturing expenses$266,000Fixed selling and administrative expenses$232,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $111,000 of the fixed manufacturing expenses and $103,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. According to the company's accounting system, what is the net operating income earned by product D74F? Include all costs in this calculation-whether relevant or not.

40

Who is responsible for planning and monitoring a project to ensure timely and cost-effective completion?

Find your answers, solutions and more...

We made it much easier for you to find exactly what you're looking for on Sciemce. Enjoy our search engine "Clutch."

Save a GPA. Donate your notes with us.

Business - Accounting And Taxation; Helping Quiz 3

Recent Packs