Act105 - Study guides, Class notes & Summaries

Question 1 of 10 10.0/ 10.0 Points Because automobiles differ so much, their manufacture is likely to be accounted for in a job costing system. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Which of the following would be classified as manufacturing overhead? (1) marketing research; (2) depreciation on president’s office facilities; (3) advertising; (4) factory taxes; (5) indirect materials; (6) machinery maintenance. A.1, 3, 4 are manufacturing overhead co...

Question 1 of 10 10.0/ 10.0 Points The stable dollar assumption is that fluctuations in the value of the dollar are significant and may not be ignored. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The percentage-of-completion method recognizes revenue at the point of sale. A. True B. False Answer Key: False Question 3 of 10 10.0/ 10.0 Points Which of the following statements is false? A.Inclusion of special journals and subsidiary ledgers increased the e...

Question 1 of 10 10.0/ 10.0 Points Inventory costs include only the seller’s invoice price less any purchase discounts. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The following principle requires a company to show in its financial statements by means of a footnote or other manner, the inventory costing method used: A .conservation principle. B .full-disclosure principle. C .consistency principle. D. business entity principle. E .stable monetary con...

Question 1 of 10 10.0/ 10.0 Points Any reputable company has a cash flow liquidity ratio of greater than 1.0. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The amount of depreciation expense in a period is added back to net income under the indirect method. A. True B. False Answer Key: True Question 3 of 10 0.0/ 10.0 Points What is the current ratio for the following data? Cash - $34,000; marketable securities - $16,000; accounts and notes receivable, net...

Question 1 of 10 10.0/ 10.0 Points Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points Internal controls, as defined in Sarbanes-Oxley Section 404, are: A.the processes a company implements to prevent theft by employees. B.the processes a company implements to prevent fraternization within departments. C.the processes a company implements to ensure its ...

Question 1 of 10 10.0/ 10.0 Points Section 404 of Sarbanes-Oxley levies duties on both management and outside auditors of public reporting companies. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points Internal controls, as defined in Sarbanes-Oxley Section 404, are: A.the processes a company implements to prevent theft by employees. B.the processes a company implements to prevent fraternization within departments. C.the processes a company implements to ensure its ...

Question 1 of 10 10.0/ 10.0 Points Effective internal control systems successfully eliminate all misstatements in financial statements. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points SEC rules do not allow management to assert that a company has effective internal controls if: A.one or more material weaknesses exist. B.two or more material weaknesses exist. C.two or more immaterial weaknesses exist. D.one material weakness and one immaterial weakness exist. ...

Question 1 of 10 10.0/ 10.0 Points Depreciation provides cash for replacing plant assets; and this is the reason depreciation is shown as an inflow of cash on the statement of cash flows. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points Cash received from the issuance of long-term debt is a financing activity. A. True B. False Answer Key: True Question 3 of 10 10.0/ 10.0 Points When net income is used as a starting point in measuring cash flows from operating...

Question 1 of 10 10.0/ 10.0 Points When the periodic method of inventory accounting is used, purchases are recorded in the Inventory account. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points On January 1, 2007, Nichols Company’s inventory of Item X consisted of 2,000 units that cost $8 each. During 2007 the company purchased 5,000 units of Item X at $10, each, and it sold 4,500 units. Periodic inventory procedure is used. Cost of goods sold using LIFO is: A.$20,...

Question 1 of 10 0.0/ 10.0 Points The data on a materials requisition are entered as debits to the Materials Inventory account. A. True B. False Answer Key: False Question 2 of 10 0.0/ 10.0 Points Which of the following statements does not apply to managerial accounting? A.Relates to the part of the company that the manager oversees. B.Helps managers make good decisions in financing, resource allocation, marketing, and production. C.Information is intended for internal use. D.Inform...