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ACCT 526 – Midterm Exam Practice Questions and Answers (100% Pass)
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ACCT 526 – Midterm Exam Practice Questions and Answers (100% Pass)
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AMWEST VIRGINIA UNIVERSIRTY- (WV) : 26506
ACCT 526 – Midterm Exam Practice
Questions and Answers (100% Pass)
The objective of profit maximization should be constrained by the requirement that
profits be achieved through
a. ethical means only
b. legal means only
c. both legal and ethical means
d. any means possible
e. None of these. - ✔️✔️c. both legal and ethical means
Which of the following is a characteristic of managerial accounting?
a. There is an internal focus.
b. It measures non-financial information that is useful for controlling costs.
c. Subjective information may be used.
d. It is broad-based and multidisciplinary.
e. All of these. - ✔️✔️e. All of these.
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
The provision of accounting information for internal users is known as
a. accounting.
b. accounting for planning and control.
c. information provision.
d. managerial accounting.
e. financial accounting. - ✔️✔️d. managerial accounting.
Cash outflows from operating activities come from
a. acquisition of operating equipment.
b. payment for operating costs.
c. collection of sales revenues.
d. retirement of bonds.
e. None of these. - ✔️✔️b. payment for operating costs.
Sources of cash include
a. profitable operations.
b. the issuance of long-term debt.
c. the sale of long-term assets.
2
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
d. the issuance of capital stock.
e. All of these. - ✔️✔️e. All of these.
Raising cash by issuing capital stock is an example of
a. a financing activity.
b. an operating activity.
c. a non-cash transaction.
d. an investing activity.
e. None of these. - ✔️✔️a. a financing activity.
An increase in accounts receivable is deducted from net income to obtain operating
cash flows because
a. cash collections from customers were greater than the revenues reported.
b. cash collections from customers were less than the revenues reported.
c. cash collections increased due to increasing sales.
d. cash collections decreased due to declining sales.
e. None of these. - ✔️✔️b. cash collections from customers were less than the revenues
reported.
Which of the following is an investing activity?
3
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
a. Issuance of a mortgage
b. Increase in inventories
c. Purchase of land
d. Increase in accounts payable
e. All of these. - ✔️✔️c. Purchase of land
Which of the following is a financing activity?
a. Increase in accounts receivable
b. Increase in inventories
c. Issuance of a mortgage
d. Purchase of land
e. None of these. - ✔️✔️c. Issuance of a mortgage
Cash inflows from operating activities come from
a. issuing capital stock.
b. gains on the sale of operating equipment.
c. the sale of a building for a gain.
d. payment for raw materials.
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