...1 Accounting principle board 9, accounting research bulletin 9, accounting standards update 12, accrual basis accounting 6, aicpa 9, apb opinions 9, auditing standard board 10, committee on accounting procedure 9, decision usefulness 6, emerging issues task force 12, entity perspective 6, expectation gap 18, fasb staff position 13, financial accounting 4, financial accounting standards board 10, codifications 14, crs 14, financial reporting 4, financial statements 4 Chapter 2 Assumption 54, comparability 51, completeness 49, conceptual framework 42, confirmatory value 47, conservatism 49, consistency 51, cost constraint 61, economic entity assumption 54, elements 52, basic 52, expense recognition principle 58, fair value 56, fair value option 57fair value principle 57, faithful representation 49, financial statements 60, free form error 49, full disclosure principle 60, general purpose financial reporting 45, going concern assumption 55, historical cost assumption 55, historical cost principle 56, matching principle 59, materiality 47, monetary unit assumption 55, neutrality 49, notes to financial statements 60, objective of financial reporting 45, period costs 59, periodicity 56, predictive value 47, principle of accounting 56, product costs 59, prudence 49, qualitative characteristics 45, relevance 46, revenue recognition principle 58, supplementary information 60, timeliness 51, understandability 52, verifiability 51 Ch 3 Account, 84 accounting cycle, 89 accounting information...
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...Yellow highlight is on test word for word CHAPTER 1 58. Which of the following is not a management function? a. Constraining (NOT) b. Planning c. Controlling d. Directing Product costs consist of b. direct materials, direct labor, and manufacturing overhead. 88. Which one of the following represents a period cost? a. The VP of Sales' salary and benefits 89. Product costs are also called c. inventoriable costs. 98. Cost of goods manufactured is calculated as follows: c. Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending WIP. 97. Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of good s manufactured? c. $60,000 (10,000+50,000) 146. For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to b. cost of goods manufactured. 94. The subtotal, "Cost of goods manufactured" appears on b. a manufacturing company's income statement. 95. Cost of goods manufactured in a manufacturing company is analogous to d. cost of goods purchased in a merchandising company. 92. A manufacturing company calculates cost of goods sold as follows: d. Beginning FG inventory + cost of goods manufactured – ending FG inventory. 106. Worth Company reported...
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...Revised Spring 2011 EXAM REVIEW UNIT II - CHAPTERS 4, 5, & 6 Study Suggestions Review your class notes, homework exercises and problems. Review Summary, Review Problem and Glossary at the end of each chapter. Use your Study Guide, especially Multiple Choice and True & False questions Review the resource materials and practice quizzes and exams available on the Textbook Website: http://highered.mcgraw-hill.com/sites/0073048836/information_center_view0/ Additional review materials are available online at sites such as: http://www.cliffsnotes.com/WileyCDA/Section/id-305261.html Key Terms and Concepts to Know Chapter 4 – Systems Design: Process Costing Differences and similarities between job order and process costing. Flow of product costs through the inventory accounts and intocost of goods sold. Each production department has a unique Production Report and separate workin-process inventory account. Journal entries required in a Process Cost system. Concept of "Equivalent Units" and how to calculate equivalent units Prepare a Production Report consisting of: Quantity Schedule Equivalent Units Cost per Equivalent Unit Cost Reconciliation/Assignment Chapter 5 - Cost Behavior: Analysis And Use Variable costs o Effect of a change in volume of total and per unit variable costs o Relationship between variable cost and the activity base. o True variable costs versus step variable costs. o Effect of the relevant range on the behavior of variable costs...
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...AC 201 Principles of Accounting I Name Version A Exam 1A- Chapters 1-3 Multiple Choice Questions ( 2 points each) Select the ONE, BEST Answer 1.|External users of accounting information include: E.|All of the above.|| 2.|Accounting certifications include the: E.|All of the above.|| 3.|The major activities of a business include: B.|Financing.|| 4.|The accounting process begins with: A.|Analysis of business transactions and events.|| 5.|A debit is: C.|A decrease in an account.|| 6.|Of the following accounts, the one that normally has a credit balance is: C.|Sales Salaries Payable.|| 7.|A balance column ledger account is: .|B.|An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted.|C.|D.|E.|| 8.|The time period principle assumes that an organization's activities can be divided into specific time periods including: E.|All of the above.|| 9.|Profit margin is defined as: A.|B.|C.|Net income divided by net sales.|| 10.|A trial balance prepared before any adjustments have been recorded is: A.||B.|Used to prepare financial statements.|||| |On November 1 of the current year, Lois Bell began Lois Bell, Interior Design with an initial investment of $50,000 cash. On November...
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...Accounting 200 Review for Exam 1 Chapter 1: 1. Forms of Business Organizations: a. Sole Proprietorship i. Business owned by a single person ii. Ex. If you want to start a business without outside investors b. Partnership iii. Business owned by two or more persons iv. Ex. If you want to start a business with a friend you can form a partnership c. Corporation v. Completely different from proprietorship or partnership vi. Entity that is legally separate from its owners and involves outside investors in the business through issuance of shares vii. External funding is raised when individuals purchase shares of ownership 1. Typically referred to as common stock 2. Each share of stock represents a unit of ownership 2. What information would a company’s investors and creditors be interested in knowing to make informed decisions? d. Investors and creditors want to know about the company’s resources and their claims to those resources 3. Basic Accounting Equation e. Assets = Liabilities + Stockholders’ Equity f. Assets viii. Resources owned by the company ix. Land, building, equipment, cash, inventory, etc. g. 2 parties of the company claim the resources x. Creditors xi. Investors h. Liabilities xii. Amounts owned to creditors xiii. Ex. Amounts owed to bank, suppliers...
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...Practice Exam 2 1. Short Stay Surgery uses a job costing system for all patients who have surgery. The clinic uses a normal costing system with operating hours as the allocation base. For the month of March, estimated total operating hours in the surgery suits were 3,200 hours. The estimated overhead costs for the suites were $640,000. Patient Sarah Handy was in surgery for 2.5 hours. Other costs related to Handy’s surgery include: Patient medicine $ 50 Cost of nurses 250 Cost of supplies 150 a. Determine the budgeted (i.e., estimated) overhead rate for the surgery suites. b. Determine the total costs for Handy’s surgery. c. Short Stay Surgery would like to know which of its services is more profitable so that it can emphasize that service in advertisements. Discuss whether each of the following types of information is relevant for this product emphasis decision: 1) Direct labor (doctors and nurses) 2) Direct supplies and medicine 3) Overhead 2. The Vegan Wagon is part of a chain of restaurants and has been losing money in past months. Part of the problem has been a decline in sales. However, sales are expected to pick up during the summer months. In March, for example, the loss was $2,250. Static Budget Actual Revenue $80,000 $65,000 Costs: Cost of ingredients 24,000 22,750 Serving personnel...
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...1) The accounting process is correctly sequenced as A. identification, communication, recording. B. recording, communication, identification. C. identification, recording, communication. D. communication, recording, identification. 2) Which list below best describes the major services performed by public accountants? A. Bookkeeping, mergers, budgets B. Employee training, auditing, bookkeeping C. Auditing, taxation, management consulting D. Cost accounting, production scheduling, recruiting 3) Communication of economic events is the part of the accounting process that involves A. identifying economic events. B. preparing accounting reports. C. recording and classifying information. D. quantifying transactions into dollars and cents. 4) The body of theory underlying accounting is not based on A. physical laws of nature. B. principles. C. definitions. D. concepts. 5) The private sector organization involved in developing accounting principles is the A. Feasible Accounting Standards Body. B. Financial Accounting Standards Board. C. Financial Auditors' Standards Body. D. Financial Accounting Studies Board. 6) GAAP stands for A. Generally Accepted Auditing Procedures. B. Generally Accepted Auditing Principles. C. Generally Accepted Accounting Procedures. D. Generally Accepted Accounting Principles...
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...|SECTION A | Answer BOTH Questions in this Section. For each question, answer ALL parts. Question 1 The following is the trial balance of Fido plc as at 30 April 2011: |Trial Balance of Fido Ltd at 30 April 2011 | | |Debit |Credit | | |£ |£ | |Issued share capital: | | | |100,000 ordinary shares of £1 each | |100,000 | |7% redeemable preference shares (50p each) | |25,000 | |Purchases |49,700 | | |Retained earnings | |2,580 | |Freehold land (cost of acquisition) |140,000 | | |Advertising |4,650 | | |Fixtures (cost of acquisition) |15,000 | | |Fixtures (accumulated depreciation) ...
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...ACCT 212 Final Exam Ratings: (0)|Views: 472 |Likes: 0 Published by ssdasdasdas See more ACCT 212 Final Exam / FinancialAccounting Click this link to get the tutorial:http://homeworkfox.com/tutorials/business/15355/acct-212-final-exam-financial-accounting/ 6. (TCO 6) Depreciation is a process to allocate the cost of long-life assets to each period'sincome statement and adjusts the value of the asset on the balance sheet. (1) Explain how thestraight-line method is computed (10 points) and (2) provide an example of how this methodcould be used on a new delivery truck purchased for $25,000 to be used for 4 years with asalvage value of $0 for year one only. (15 points) (Points : 25) 7. (TCO 6) To raise capital, companies might sell bonds. This allows them to bypass lenderssuch as banks and go directly to the investing public. Your company is planning to sell bondswith a face amount of $10,000 and paying 5% annual interest. (1) The day the bonds hit themarket, the bond price is quoted at 101.5. What is the bond's selling price? (10 points) and (2)how does the company record this sale in its accounting information system? Use journal entriesto support your answer. (15 points) (Points : 25) 8. (TCO 1) Financial statement analysis is used by investors, creditors, and managers of businessto evaluate the operation and health of the business. This information is in part the basis for decision-making. (1) Identify ratios used to evaluate the profitability of a company (10 points)and...
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...1.) Wholesome, Inc. starts a pension plan for its 10 employees on 1/2/20A. All are 53, and will retire at age 65 (in 12 yrs) on 12/31/20J. All are expected to live 10 yrs past retirement. Each is given credit for 15 years prior service at inception of the plan. The plan calls for payments at the beginning of each retirement year. Wholesome will make a lump sum payment of $250,000 on 1/2/20A to partially fund the prior service cost of $453,246. Funding is to be set at a level payment each period of $108,258, starting on 12/31/20A. The fund earning and the settlement rate are 8%. Prior service cost is to be amortized st-line over the remaining service lives of the employees. The following data are available: 1/2/20A 12/31/20A 12/31/20J Projected Benefit Obligation $453,246 ? ? Prior service cost (PBO method) $453,246 PV @ 12/31/20J (annuity due, 10 payments) of benefits earned each yr per employee: $ 7,609 Required: a) Compute pension expense, listing components, and present required entries per SFAS 158 for the payment on 1/2/20A and the expense accrual/payment at 12/31/20A: Expense amount: $86,664 b) What is the PBO on 12/31/20A? What is the funded status of the plan on that date? (Show your work). PBO: $522,139 Funded status: $143,881 PBO: __________________ Funded status: _______________ 2) Lease Lessor, Inc. leases a computer under a 6 yr noncancelable lease to Lessee, Inc. The lease calls for...
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...1._____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix. A. Budgeting analysis B. Accounting C. Futuring D. Financial planning 2.A sales forecast is _____. A. a prediction of sales under a given set of conditions B. the same as a sales budget that will generate a desired level of sales C. all of these answers are correct D. the result of decisions to create conditions 3. A _____ gives the expected sales under a given set of conditions. A. sales prediction B. budget forecast C. sales forecast D. sales budget 4. _____ need cost accounting systems. A. Manufacturing firms and service organizations B. Manufacturing firms and nonprofit organizations C. Manufacturing firms, service organizations, and nonprofit organizations D. Service organizations and nonprofit organizations 5. _____ probably would not be used as a measure of activity in a flexible budget. A. Sales volume B. Number of machine hours used C. Number of hours worked by salespeople D. Number of direct labor hours worked 6. _____ are components of a master budget. A. A continuous budget and a static budget B. An operating budget and a financial budget C. A strategic plan and an operating budget D. A cash budget and an activity budget 7. The master budget quantifies targets for all of the following except _____. A. markets B. production C. sales D. cost driver activity 8. Costs...
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...Principles of Accounting II Exam 1 -2010 Version 1-16. Decentralization refers to: A. reporting for the company as a whole. B. focusing reporting on parts of the company. C. the delegation of decision-making authority throughout an organization. D. differences in organizations. 2-21. Dorra Corporation manufactures lawnmowers in five work stations. Dorra's weekly demand is 5,000 mowers but Dorra can only produce 4,200. According to the theory of constraints, to increase production output Dorra would benefit the most by concentrating improvement efforts on the: A. first work station. B. last work station. C. largest work station. D. fastest work station. E. slowest work station. 3-23. One of the steps in the lean thinking model is to organize work arrangements around the flow of the business process. This is often accomplished by: A. automating the business process. B. implementing an enterprise system. C. instituting a six sigma program. D. creating a manufacturing cell. 4-18. Managerial accounting: A. has its primary emphasis on the future. B. is required by regulatory bodies such as the SEC. C. focuses on the organization as a whole, rather than on the organization's segments. D. Responses a, b, and c are all correct. 5-20. Which of the following IS a characteristic of financial accounting? A. not mandatory B. must follow GAAP C. emphasis on relevance of data, rather than precision D. both A and C above 6-21. The corporate controller's...
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...BLAW 2210 Term Paper Career Preparation My top two career choices are corporate financial analysis in investment banking and actuary. I will be discussing the legal environment of my career choices, taxing authorities, entity structure, graduate school in order to obtain certain license, self-assessment of my chosen careers. First, I will discuss how I can work as a corporate financial analysis in investment banking. After that, I will talk about what I need prepare to be an actuary. 1.corporate financial planning and analysis The responsibility of a corporate financial planing and analysis is to support management planning and decision making by identifying, maintaining, and evaluating information,as well as recommending actions. * Legal environment * Entity structure Investment banking is concerned with the primary function of assisting the capital market in its function of capital market intermediation, i.e. the movement of financial resources from those who have them means investors, to those who need to make use of them means issuer for generating profit. Therefore, it can be inferred that investment banks are those institutions that are the counterparts of banks in the capital market in the function of intermediation in resources allocation. Investment banks carried on carious activities it helps companies and governments and their agencies to raise money by issuing and selling securities in the primary market. They assist public and private corporations...
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...Chapter 11: Reporting and Interpreting Stockholders’ Equity * Corporate Ownership * Shares of stock can be purchased in small amounts. * Ownership interests are transferable. * Stockholders are not liable for the corporation’s debts * Common stock – the basic voting stock issued by a corporation to stockholders. * Voting rights * Dividends * Residual claim – if the company ceases operations, stockholders share in any assets remaining after creditors have been paid. * Preemptive Rights – existing stockholders may be given the first chance to buy newly issued stock before it is offered to others. * Equity vs. Debt Financing * Equity financing – issuing new stock to investors * Debt financing – borrowing money from lenders * All transactions between a company and its stockholders affect the company’s balance sheet accounts only. * Common Stock Transactions * Contributed capital – reports the amount of capital the company received from investors’ contributions, in exchange for the company’s stock. * Retained earnings – reports the cumulative amounts of net income earned by the company less the cumulative amount of dividends declared since the corporation was first organized. * Treasury stock – reports shares that were previously owned by stockholders but have been reacquired and are now held by the corporation * Authorization, Issuance, and Repurchase of Stock ...
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...Essay 10: Earnings per Share Dividends or dividend requirements can either positively or negatively affect the computation of basic EPS. Basic EPS is calculated by subtracting preferred dividends from net income and dividing the result by the weighted-average of shares outstanding.(5) If preferred dividends are a larger amount it will result in a smaller EPS and vice versa. The treasury stock method of computing dilutive EPS assumes that the options or warrants are exercised at the beginning of the year (or the date of issue if later), and that the company uses the proceeds to purchase common stock for the treasury. If the exercise price is lower than the market price proceeds are insufficient to buy back all the shares causing the company to add the incremental shares remaining to the weighted-average number of shares outstanding to compute diluted EPS.(5) The treasury stock method must be used to compute dilutive EPS under GAAP. Convertible bonds are determined to be dilutive or anti-dilutive based on how their exercise affects EPS.(2) Dilutive convertible bonds will decrease EPS and anti-dilutive convertible bonds will increase EPS. A capital structure is complex if it includes securities that could have a dilutive effect on earnings per common share.(5) When a complex capital structure exists the company generally reports both basic and diluted EPS. Essay 2: Leases For the first transaction the leased computer should be shown in Superior Electronic’s (the lessee) financial...
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