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30 Accounting Study Questions

1) The statement of cash flows is used for .
2) Non-operating items on the income statement .
3) The difference between a single-step and multiple-step income statement is that a single-step income statement .
4) Which one of the following statements is true?
5) The accounting convention uses the acquisition cost minus depreciation in valuing an asset on the balance sheet.
6) A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to .
7) Which type of organization would most likely have work-in-process inventory?
8) is a measure of income or profit divided by the investment required to obtain that income or profit.
9) The following information is available for the Peter Company:
Sales: $150,000
Invested capital: $156,250
ROI: 10%
The return on sales is .
10) The following information is available for the Peter Company:
Sales: $500,000
Invested capital: $312,500
ROI: 10%
The return on sales is .
11) Company A's revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be .
12) When the variable costing method is used, fixed factory overhead appears on the income statement as a .
13) In absorption costing, costs are separated into the major categories of .
14) is another term for variable costing.
15) Budgeted service department cost rates protects the user departments from .
16) is an example of the external financial-reporting purpose of the cost management systems.
17) The level of sales at which revenues equal expenses and net income is zero is called the .
18) Output measures of both resources and activities are .
19) The break-even point is where .
20) budgeting is when budgets are formulated with the active participation of all affected employees.
21) is the logical integration of management accounting tools to gather and report data and to evaluate performance.
22) are components of a master budget.
23) An important factor considered by sales forecasters is .
24) models are mathematical models of the master budget that can react to any set of assumptions about sales, costs, and product mix.
25) Which of the following is an objective of budgeting?
26) An organization's budget program should be used
27) The activity-based costing may reveal , whereas traditional costing cannot.
28) is a method of approximating cost functions.
29) In relation to a cost function, the term reliability refers to .
30) One of the simplest methods to measure a linear cost function from past data is the .

Solution Preview

1) The statement of cash flows is used for managerial decision making, investment planning, cash position analysis, etc.
2) Non-operating items on the income statement is used to determine the decisions of management and how they're using invested capital. .
3) The difference between a single-step and multiple-step income statement is that a single-step income statement uses groupings for revenues and expenses. .
4) Which one of the following statements is true? No statements are listed.
5) The continuity accounting convention uses the acquisition cost minus depreciation in valuing an asset on the balance sheet.
6) A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to cash. The credit would go to common stock. .
7) Which type of organization would most likely have work-in-process inventory? manufacturing
8)ROI is a measure of income or profit divided by ...

Solution Summary

This solution provides the answers to thirty classic accounting study questions. All thirty questions are answered.

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