All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
accounting principles

Questions and Answers of Accounting Principles

The total estimated sales for the coming year is 250,000 units. The estimated inventory at the beginning of the year is 22,500 units, and the desired inventory at the end of the year is 30,000 units.
Dixon Company expects $650,000 of credit sales in March and $800,000 of credit sales in April. DLxon historically collects 70% of its sales in the month of sale and 30% in the following month. How
What are the three major objectives of budgeting. LO3
What is the manager's role in a responsibility center? LO3
Briefly describe the type of human behavior problems that might arise if budget goals are set too tightly. LO3
Why should all levels of management and all departments participate in preparing and submitting budget estimates? LO3
Give an example of budgetary slack. LO3
What behavioral problems are associated with setting a budget too loosely? LO3
What behavioral problems are associated with establishing conflicting goals within the budget? LO3
When would a company use zero-based budgeting? LO3
Under what circumstances would a static budget be appropriate? LO3
How do computerized budgeting systems aid firms in the budgeting process? LO3
What is the first step in preparing a master budget? LO3
Why should the production requirements set forth in the production budget be care- fully coordinated with the sales budget? LO3
Why should the timing of direct materials purchases be closely coordinated with the production budget? LO3
How does a schedule of collections from sales assist in preparing the cash budget? LO3
Give an example of how the capital expenditures budget affects other operating budgets. LO3
The actual and standard direct materials costs for producing a s pecified quantity of product are as follows: LO5 Actual: ^1.000 pounds at S5.05 $257,550 Standard: 50. 000 pounds at S5.00 S250.000
Bower Company produced 4,000 units of product. Each unit requires 0. 5 standard hour. The standard la- bor rate is $12 per hour. Actual direct labor for the period was $22.000 (2.200 hours x $10 per
The actual and standard factory overhead costs for pro- ducing a specified quantity of product are as follows: Variable factory overhead $72,500 Fixed factory overhead Actual: Standard: 19,000 hours
Applegate Company has a normal budgeted capacity of 200 machine hours. Applegate produced 600 units. Each unit requires a standard 0. 2 machine hour to complete. The standard fixed factory overhead
What are the basic objectives in the use of standard costs? LO5
How can standards be used by management to help control costs? LO5
What is meant by reporting by the "principle of exceptions," as the term is used in reference to cost control? LO5
How often should standards be revised? LO5
How are standards used in budgetary performance evaluation? LO5
a. What are the two variances between the actual cost and the standard cost for direct materials?b. Discuss some possible causes of these variances. LO5
a. What are the two variances between the actual cost and the standard cost for direct labor?b. Who generally has control over the direct labor cost? LO5
a. Describe the two variances between the actual costs and the standard costs for factory overhead.b. What is a factory overhead cost variance report? LO5
What are budgeted fixed costs at normal volume? LO5
If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent? LO5
If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a credit balance in Direct Materials Quantity Variance represent? LO5
Are variances from standard costs usually reported in financial statements issued to stockholders and others outside the firm? LO5
Assuming that the variances from standards are not significant at the end of the period, to what account are they transferred? LO5
Would the use of standards be appropriate in a nonmanufacturing setting, such as a fast food restaurant? LO5
Briefly explain why firms might use nonfinancial performance measures. LO5
When the manager has the responsibility and authorit)-to make decisions that affect costs and revenues but no responsibility for or authority over assets invested in the department, the department is
The Accounts Payable Department has expenses of$600,000 and makes 150,000 payments to the various vendors who provide products and services to the divisions.Division A has income from operations
Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000. operating expenses of $30,000, and invested assets of $600,000. What is the rate of return on investment for Division A?
Division L of Liddy Co. has a rate of return on investment of 2 4% and an investment turnover of 1.6.What is the profit margin? LO1 A. 6% C. 24%B. 15% D. 38%
Name three common types of responsibility centers for decentralized operations. LO1
Differentiate between a cost center and a profit center. LO1
Differentiate between a profit center and an investment center. LO1
In what major respect would budget performance reports prepared for the use of plant managers of a manufacturing business with cost centers differ from those prepared tor the use of the various
For what decisions is the manager of a cost center not responsible? LO1
How are service department costs charged to responsibility centers? LO1
How is a service department charge rate determined? LO1
Name two performance measures useful in evaluating investment centers. LO1
What is the major shortcoming of using income from operations as a performance measure for investment centers? LO1
Why should the factors under the control of the investment center manager (revenues, expenses, and invested assets) be considered in computing the rate of return on investment? LO1
What are two ways of expressing the rate of return on investment? LO1
In evaluating investment centers, what does multiplying the profit margin by the investment turnover equal? LO1
How does using the rate of return on investment facilitate comparability between divisions of decentralized companies? LO1
How is the residual income computed? LO1
Why would a firm use a balanced scorecard in evaluating divisional performance? LO1
What is the objective of transfer pricing? LO1
When is the negotiated price approach preferred over the market price approach in setting transfer prices? LO1
If division managers cannot agree among themselves on a transfer price when using the negotiated price approach, how is the transfer price established? LO1
When using the negotiated price approach to transfer pricing, within what range should the transfer price be established? LO1
If the bonds payable account has a balance of $500,000 and the discount on bonds payable account has a balance of $ 40,000, what is the earning amount of the bonds? LO3 A. $460,000 C. $540,000 B.
The cash and securities that make up the sinking fund established for the payment of bonds at maturity are classified on the balance sheet as: LO3 A.B.current assets investments C. long-term
If a firm purchases $100,000 of bonds of X Companv at 101 plus accrued interest of $2,000 and pays broker's commissions of $50, the amount debited to Investment in X Company Bonds would be: LO3 A.
The balance in the discount on bonds payable account would usually be reported in the balance sheet in the: LO3 A. Current Assets section B. Current Liabilities section C. Long-Term Liabilities
What is meant by the time value of money"? LO3
What has the higher present value: (a > $ 5,000 to be received at the end of two vears.or (b) $2,500 to be received at the ^-n^l of each of the next two years? LO3
If you asked your broker to purchase for you a 6% bond when the market interest rate for such bonds was 7%, would you expect to pay more or less than the face amount for the bond? Explain. LO3
The following data relate to a $1,000,000, 6% bond issue for a selected semiannual interest period: LO3(a) Were the bonds issued at a discount or at a premium? (b) What is the unamortized amount of
Assume that Abacus Co. amortizes premiums and discounts on bonds payable at the end of the year rather than when interest is paid. What accounts would be debited and credited to record (a) the
Would a zero-coupon bond ever sell for its face amount? LO3
What is the purpose of a bond sinking fund? LO3
How are earnings from investments in a sinking fund reported on the income state- ment? LO3
How are cash and securities comprising a sinking fund classified on the balance sheet? LO3
Assume that two 15-year, 7% bond issues are identical, except that one bond issue is callable at its face amount at the end of 10 years. Which of the two bond issues do you think will sell for a
How are gains or losses on bond redemptions reported on the income statement.'' LO3
Assume that a company purchases bonds between interest dates. What accounts would normally be debited? LO3
Indicate how the following accounts should be reported on the balance sheet: (a)Premium on Bonds Payable and (b) Discount on Bonds Payable. LO3
The net income reported on the income statement for the year was $55,000, and depreciation of fixed assets for the year was $22,000. The balances of the current asset and current liability accounts
What is the principal disadvantage of the direct method of reporting cash flows from operating activities? LO5
What are the major advantages of the indirect method of reporting cash flows from operating activities? LO5
A corporation issued $200,000 of common stock in exchange for $200,000 of fixed assets. Where would this transaction be reported on the statement of cash flows? LO5
a. What is the effect on cash flows of declaring and issuing a stock dividend?b. Is the stock dividend reported on the statement of cash flows? LO5
A retail business, using the accrual method of accounting, owed merchandise creditors(accounts payable) $290,000 at the beginning of the year and $315,000 at the end of die year. How would the
A corporation issued $5,000,000 of 20-year bonds for cash at 105. How would the transaction be reported on the statement of cash flows? LO5
Fully depreciated equipment costing $55,000 was discarded. What was the effect of the transaction on cash flows if (a) $5,000 cash is received, (b) no cash is received? LO5
In a recent annual report, PepsiCo, Inc., reported that during the year it issued stock of $438 million for acquisitions. How would this be reported on the statement of cash flows? LO5
What type of analysis is indicated by the following? LO4A. Vertical analysis B. Horizontal analysis C. Profitability analysis D. Contribution margin Amount Percent Current assets $100,000 20%
analysis Which of the following measures indicates the ability of a firm to pay its current liabilities? LO4 A. Working capital B. Current ratio C. Acid-test ratio All of the above
The ratio determined by dividing total current assets by total current liabilities is: LO4 A. current ratio C. bankers' ratio B. working capital ratio D. all of the above
The ratio of the quick assets to current liabilities, which indicates the "instant" debt-paying ability of a firm, is: LO4 A. current ratio C. acid-test ratio B. working capital ratio D. bankers'
A measure useful in evaluating the efficiency in the management of inventories is: LO4 A. working capital ratio B. acid-test ratio C. number of days' sales in inventory D. ratio of fixed assets to
What is the difference between horizontal and vertical analysis of financial statements? LO4
What is the advantage of using comparative statements for financial analysis rather than statements for a single date or period? LO4
The current year's amount of net income (after income tax) is 15% larger than that of the preceding year. Does this indicate an improved operating performance? Discuss. LO4
How would you respond to a horizontal analysis that showed an expense increasing by over 100%? LO4
a. Name the major ratios useful in assessing solvency and profitability.b. Why is it important not to rely on only one ratio or measure in assessing the solvency or profitability of a business? LO4
How would the current and acid-test ratios of a service business compare? LO4
For Lindsay Corporation, the working capital at the end of the current year is $5,000 greater than the working capital at the end of the preceding year, reported as follows: LO4 Current assets: Cash,
A company that grants terms of n/30 on all sales has a yearly accounts receivable turnover, based on monthly averages, of 6. Is this a satisfactory turnover? Discuss. LO4
What does an increase in the number of days' sales in receivables ordinarily indicate about the credit and collection policy of the firm? LO4
LO4 What do the following data taken from a comparative balance sheet indicate about the company's ability to borrow additional funds on a long-term basis in the current year as compared to the

Showing 400 - 500 of 1520

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved