7/21/2019 ACCT 301 Midterm and Final Exam

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ACCT 301 Essentials of Accounting (DeVry)

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 ACCT 301 Midterm - Version 1

rice! " 1#age 1

1$ (TC% 1) Suppose your company sold $25,000 in merchandise to a customer for cash. Howdoes this transaction impact the accounting equation? (oints ! "2#&$ (TC% &) Suppose your company sold $50,000 in merchandise to a customer for cash. Howdoes this transaction impact the accounting equation? (oints ! "2#3$ (TC% 3) ationali%ation is one of the components of the fraud triangle. &hat types ofrationali%ation could a person use to 'ustify misconduct? How can a company protect itself fromrationali%ation as a part of fraud? (oints ! "2#'$ (TC% ') &hat is hori%ontal analysis of financial statements? How does hori%ontal analysisdiffer from ertical analysis? (oints ! "2#age &

1$ (TC% 3) Separation of duties is a )ey feature in an internal control system. &hy is separation

of duties such an important internal control? *ie an e+ample of separation of duties as aninternal control. (oints ! 2#&$ $ (TC% 1) -escrie the alance sheet. &hy is this statement important to the company,creditors, and inestors? (oints ! 2#3$ (TC% ') /ame and descrie one liquidity ratio. &hat does this ratio measure? &hat is theformula for this ratio? (oints ! 2#

 ACCT 301 Midterm - Version &

rice! " &#1$ uestion (TC% 1) he retained earnings statement shows all of the following e+cept which

one?&$ uestion (TC% 1) 1anagements iews on the companys short3term det paying aility,e+pansion financing, and results of operations are found in which of the following?3$ uestion (TC% ') 4or 20"0, 4ielder orporation reported net income of $60,0007 net sales$00,0007 and aerage share outstanding 8,000. here were no preferred stoc) diidends. &hatwas the 20"0 earnings per share?'$ uestion (TC% ') A useful measure of solency is which of the following?#$ uestion (TC% &) &hich pair of accounts follows the rules of deit and credit, in relation toincreases and decreases, in the same manner?$ uestion (TC% &) he principle purpose of posting is which of the following?*$ uestion (TC% 3) 9oe is a warehouse custodian, and also maintains the accounting record of

the inentory held at the warehouse. :n assessment of this situation indicates+$ uestion (TC% 3) he following information was ta)en from Hurlert ompany cash udgetfor the month of 9une!,$ uestion (TC% 11) 1anagerial accounting information does which of the following?10$ uestion (TC% 11) &hich one of the following is not a direct material?11$ uestion (TC% 11) Sales commissions are classified as which of the following?1&$ uestion (TC% 11) 1anufacturing costs include which of the following?13$ uestion (TC% 11) /eeley 1anufacturing ompany reported the following year3endinformation!1'$ uestion (TC% #) &hat effect do changes in actiity hae on fi+ed costs per unit?1#$ uestion (TC% #) &hich one of the following is not an assumption of ; analysis?

7/21/2019 ACCT 301 Midterm and Final Exam

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 ACCT 301 Midterm - Version 3

rice! " &#1$ uestion (TC% #) : company has total fi+ed costs of $2"0,000 and a contriution marginratio of 60<. How much sales are necessary to rea) een?&$ uestion (TC% #) How much sales are required to earn a target income of $=0,000, if totalfi+ed costs are $"00,000 and the contriution margin ratio is 0<?

3$ uestion (TC% ) 4or which one of the following udgeting aspects does the udgetcommittee generally hae the responsiility?'$ uestion (TC% ) >nder what situation might a udget e most effectie?#$ uestion (TC% ) How does long3range planning compare to a master udget?$ uestion (TC% ) &hich one of the following is a source of information used to prepare the udgeted income statement?*$ uestion (TC% *) &hen is a static udget most appropriate in ealuating a managers performance?+$ uestion (TC% *) &hich type of center is the house)eeping department of a manufacturingcompany?,$ uestion (TC% *) 4or which of the following is an inestment center manager responsile?10$ uestion (TC% *) 1erc) harmaceuticals is ealuating its ;io++ diision, an inestmentcenter. he diision has a $5,000 controllale margin and $600,000 of sales. How much will1erc)s aerage operating assets e when its return on inestment is "0<?11$ uestion (TC% 11) 4inancial and managerial accounting are oth concerned with theeconomic eents of an enterprise. Similarities etween financial and managerial accounting doe+ist, ut they hae a different focus. riefly distinguish etween financial and managerialaccounting as they relate to ("# the primary users, (2# the type and frequency of reports, (6# the purpose of reports, and (# the content of reports.1&$ uestion (TC% ') :re short3term creditors, long3term creditors, and stoc)holders primarilyinterested in the same characteristics of a company? @+plain.13$ uestion (TC% #) An the month of Septemer, /i+on ompany sold B00 units of product.he aerage sales price was $60. -uring the month, fi+ed costs were $=,200 and ariale costswere 80< of sales.

ACCT 301 ee. + /inal Eam

rice! " &#1$ (TC% 1) &hat is the accounting equation? Suppose your company sold $"2,000 inmerchandise to a customer for cash. How does this transaction impact the accounting equation?(oints ! "=#&$ (TC% &) &hat are the four asic financial statements? -escrie the alance sheet, and e+plainwhy it is important3$ &hat is the Saranes3C+ley :ct? -o you thin) this act has more importance for the

accounting profession or for inestors? &hy'$ &hat is hori%ontal analysis of financial statements? How does hori%ontal analysis differ fromertical analysis?#$ (TC% +) &hy is capital udgeting important? &hat is the A method? How is itcalculated? (oints ! 28#$ (TC% ,) &hat are fie different types of decisions that could use incremental analysis? &hatare the releant costs in a ma)e3or3uy decision? (oints ! 28#*$ (TC% 10) How is a transfer price determined? -escrie the cost3ased method. -o you thin)it is etter than the mar)et3ased method? (oints ! 28#+$ (TC% 11) &hat are direct materials? *ie an e+ample of a direct material. How do directmaterials differ from indirect materials? *ie an e+ample of an indirect material. (oints ! 28#

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,$ (TC% #) &hat is ; analysis? &hy is this an important analysis for a company to perform?(oints ! 28#10$ (TC% ) &hat is an operating udget? &hat does it result in? &hat is the first step incompleting an operating udget? (oints ! 28#11$ (TC% *) &hat is responsiility accounting? &hat is a cost center? How does a cost centerdiffer from a profit center? (oints ! 28#

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