1. The retained earnings statement shows all of the following except which one?
The amounts of changes in retained earnings during the period
The causes of changes in retained earnings during the period
The time period following the one shown for the income statement
Beginning retained earnings on the first line of the statement
2. The information needed to determine whether a company is using accounting methods similar to those of its competitors, would be found in which of the following?
management discussion and analysis section
notes to the financial statements
3. Using the following balance sheet and income statement data, what is the earnings per share?
Current assets $ 9,000 Net income $ 12,000
Current liabilities 4,000 Stockholders’ equity 27,000
Average assets 44,000 Total liabilities 6,000
Total assets 30,000
Average common shares outstanding was 10,000
4. Which of the following is not considered a measure of liquidity?
Debt to total assets ratio
Each of the above are liquidity measures
5. Which pair of accounts follows the rules of debit and credit, in relation to increases and decreases, in the same manner?
Accounts Payable and Rent Expense
Repair Expense and Notes Payable
Prepaid Insurance and Advertising Expense
Service Revenues and Equipment
6. Which of the following is not part of the recording process?
Preparing a trial balance
Entering transactions in a journal
Posting journal entries
7. Joe is a warehouse custodian, and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates ______________________ .
documentation procedures are violated
independent internal verification is violated
segregation of duties is violated
establishment of responsibility is violated
8. The following information was taken from Niland Company cash budget for the month of April:
Beginning cash balance $30,000
Cash receipts 27,000
Cash disbursements 34,000
If the company has a policy of maintaining end of the month cash balance of $25,000, the amount the company would have to borrow is which of the following?
9. Managerial accounting information does which of the following?
pertains to the entity as a whole and is highly aggregated
must be prepared according to generally accepted accounting principles
pertains to subunits of the entity and may be very detailed
is prepared only once a year
10. A manufacturing process requires small amounts of glue. The glue used in the production process is classified as which of the following?
11. Which of the following are period costs?
Direct materials and direct labor
Direct labor and manufacturing overhead
12. Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totaling $13,000, and direct materials totaling $16,000. How much is direct labor cost?
13. Hardigan Manufacturing Company reported the following year-end information:
beginning work in process inventory, $80,000
cost of goods manufactured, $980,000
beginning finished goods inventory, $50,000
ending work in process inventory, $70,000
and ending finished goods inventory, $40,000
How much is Hardigan’s cost of goods sold for the year?
14. Which statement describes a fixed cost?
It varies in total at every level of activity.
The amount per unit varies depending on the activity level.
Its total varies proportionally to the level of activity.
It remains the same per unit regardless of activity level.
15. Which one of the following is not an assumption of CVP analysis?
All units produced are sold.
Cost classifications are reasonably accurate.
Factors other than changes in activity may affect costs.
The sales mix remains constant.