ACC 280 Final Exam (8th Set) 31 Questions.doc.docx
ACC 280 Final Exam (8th Set) 31 Questions.doc.docx PRG211
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Date Created: 11/16/15
ACC 280 Final Exam. P.S. Your questions will be chosen randomly from a large set of questions. Nobody can guarantee that these questions will cover completely your exam. If I helped you please leave “A” feedback (I need it very much). Thank you and good luck. 1) The standards and rules that are recognized as a general guide for financial reporting are called __________. A. standards of financial reporting B. generally accepted accounting principles C. operating guidelines D. generally accepted accounting standards 2) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March? A. $8,250 B. $4,500 C. $750 D. $5,250 ((9,000X2) – (6,000+7,500)) 3) Which one of the following items is not generally used in preparing a statement of cash flows? A. Additional information B. Comparative balance sheets C. Current income statement D. Adjusted trial balance 4) The cost principle requires that when assets are acquired, they be recorded at __________. A. list price B. exchange price paid C. selling price D. appraisal value 5) 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. Exception reporting D. Static reporting 6) The cost principle is the basis for preparing financial statements because it is __________. A. the most accurate measure of purchasing power B. an international accounting standard C. relevant and objectively measured, and verifiable D. a conservative value 7) Which list below best describes the major services performed by public accountants? A. Cost accounting, production scheduling, recruiting B. Auditing, taxation, management consulting C. Employee training, auditing, bookkeeping D. Bookkeeping, mergers, budgets 8) A welldesigned activitybased costing system starts with __________. A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products C. computing the activitybased overhead rate D. identifying the activitycost pools 9) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 Closing entries are necessary for __________. A. permanent or real accounts only B. both permanent and temporary accounts C. temporary accounts only D. permanent accounts only 10) What exists when budgeted costs exceed actual results? A. An excess profit B. An unfavorable difference C. A favorable difference D. A budgeting error 11) Multinational corporations __________. A. are U.S. companies that trade their securities on the exchanges in other countries B. are firms that conduct their operations in more than one country through subsidiaries, divisions, or branches in foreign countries C. are U.S. companies that sell goods and services in other countries D. are required to use international accounting standards 12) The major reporting standard for management accounts is __________. A. generally accepted accounting principles B. relevance to decisions C. the SarbanesOxley Act of 2002 D. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management 13) The primary purpose of the statement of cash flows is to __________. A. facilitate banking relationships B. provide information about the investing and financing activities during a period C. prove that revenues exceed expenses if there is a net income D. provide information about the cash receipts and cash payments during a period 14) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? A. The western division’s vice president’s salary B. Factory janitor C. General corporate liability insurance D. Cost of landscaping the corporate office 15) Assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet? A. Income statement columns B. Adjustments columns C. Trial balance columns D. Adjusted trial balance columns 16) Each of the following accounts is closed to Income Summary except A. Revenues. B. Dividends. C. All of these are closed to Income Summary. D. Expenses. 17) Closing entries may be prepared from all but which one of the following sources? A. Balance sheet B. Income statement and balance sheet columns of the worksheet C. Income and Stockholders' equity statements D. Adjusted balances in the ledger 18) In preparing closing entries A. the retained earnings account will be debited if there is net income for the period. B. each expense account will be credited. C. the dividends account will be debited. D. each revenue account will be credited. 19) Which of the following is a true statement about closing the books of a corporation? A. Revenues and expenses are closed to the Income Summary account. B. Only revenues are closed to the Income Summary account. C. Revenues, expenses, and the dividends account are closed to the Income Summary account. D. Expenses are closed to the Expense Summary account. 20) The importance of a good system of internal controls was recognized with the passage of A. the Securities and Exchange Act of 1933. B. the Blue Sky Laws. C. the Securities and Exchange Act of 1994. D. the SarbanesOxley Act of 2002. 21) A technique for evaluating financial statements that expresses the relationship among selected items of financial statement data is A. ratio analysis. B. horizontal analysis. C. vertical analysis. D. common size analysis. 22) Horizontal analysis is also called A. trend analysis. B. vertical analysis. C. common size analysis. D. linear analysis. 23) Vertical analysis is also known as A. trend analysis. B. common size analysis. C. straightline analysis. D. perpendicular analysis. 24) Internal controls are not designed to safeguard assets from A. robbery. B. employee theft. C. unauthorized use. D. natural disasters. 25) Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of A. inadequate internal control. B. external verification. C. duplication of effort. D. segregation of duties. 26) Which one of the following is not an objective of a system of internal controls? A. Safeguard company assets B. Enhance the accuracy and reliability of accounting records C. Overstate liabilities in order to be conservative D. Reduce the risks of errors 27) The SarbanesOxley Act of 2002 requires that all U.S. corporations under the jurisdiction of the Securities and Exchange Commission A. have at least one foreign subsidiary. B. maintain an adequate system of internal control. C. maintain accounting records of foreign branches and subsidiaries in the local foreign currency. D. must file reports with the National Commission on Fraudulent Financial Reporting. 28) Companies that are subject to, but fail to comply with, the SarbanesOxley Act of 2002 A. may do so legally by obtaining an exemption. B. may be subject to fines and officer imprisonment. C. will be automatically dissolved. D. may be forced to sell their foreign subsidiaries. 29) The importance of a good system of internal controls was recognized with the passage of A. the Securities and Exchange Act of 1933. B. the Blue Sky Laws. C. the Securities and Exchange Act of 1994. D. the SarbanesOxley Act of 2002. 30) Joe is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates A. documentation procedures are violated. B. segregation of duties is violated. C. independent internal verification is violated. D. establishment of responsibility is violated. 31) Allowing only the treasurer to sign checks is an example of A. documentation procedures. B. other controls. C. segregation of duties. D. establishment of responsibility
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