BUS 475 Final Exam 2012 – Set 4

1) Which one of the following is a product cost?
A. Indirect laborB. Sales person’s salariesC. Office salariesD. Advertising costs
2) Lucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a __________.
A. borrower who demands money from the financial systemB. borrower who supplies money to the financial systemC. saver who supplies money to the financial systemD. saver who demands money from the financial system 3) Of the following companies, which one would not likely employ the specific identification method for inventory costing?
A. Music store specializing in organ salesB. Antique shopC. Farm implement dealershipD. Hardware store 4) Which one of the following items is not generally used in preparing a statement of cash flows?
A. Adjusted trial balance
B. Comparative balance sheetsC. Additional informationD. Current income statement 5) The conceptual framework developed by the Financial Accounting Standards Board __________.
A. was approved by a vote of all accountantsB. is viewed as providing a constitution for setting accounting standards for financial reporting
C. are rules that all accountants must followD. is legally binding on all accountants
6) What is the preparation of reports for each level of responsibility in the company’s organization chart called?
A. Static reportingB. Exception reportingC. Responsibility reportingD. Master budgeting analysis
7) The cost principle requires that when assets are acquired, they be recorded at __________.
A. appraisal valueB. selling priceC. exchange price paidD. list price
8) If a company reports a net loss, it __________.
A. will not be able to make capital expendituresB. will not be able to get a loanC. may still have a net increase in