1) Balance sheet accounts are considered to be _________. A. nominal accounts B. permanent accounts C. temporary stockholders’ accounts D. capital accounts
2) The major reporting standard for management accounts is _________. A. generally accepted accounting principles B. the Sarbanes-Oxley Act of 2002 C. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management D. relevance to decisions
3) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? A. It should sell an equal quantity of both B. Wine C. Beer D. Selling either results in the same additional income for the company
4) What is the preparation of reports for each level of responsibility in the company’s organization chart called? A. Master budgeting analysis B. Responsibility reporting C. Static reporting D. Exception reporting 5) These are selected account balances on December 31, 2008. Land (location of the corporation’s office building) $100,000 Land (held for future use) 150,000 Corporate Office Building 600,000 Inventory 200,000 Equipment 450,000 Office Furniture 100,000 Accumulated Depreciation 300,000 What is the net amount of property, plant, and equipment that will appear on the balance sheet? A. $950,000 B. $1,100,000 C. $1,300,000 D. $1,600,000
6) Of the following companies, which one would not likely employ the specific identification method for inventory costing? A. Hardware store B. Farm implement dealership C. Music store specializing in organ sales D. Antique shop
7) The cost of an asset and its fair market value are __________. A. the same on the date of acquisition B. the same when the asset is sold C. never the same D.