A) Sara Turner is considering investing $60,000 in a project with the following cash revenue and expenses:

Year	Revenues ($)	Cash expansion and depreciation ($)
1	16,000	16,000
2	18,000	16,000
3	17,000	17,000
4	26,000	14,000
5	26,000	14,000

Assuming straight-line depreciation over five years, what is the payback period for this investment?

a. Between 2 and 3 years

b. Between 4 and 5 years

c. Between 1 and 2 years

d. Between 3 and 5 years

e. Between 3 and 4 years

B) Which of the following is not an objective of managerial accounting?

a. To provide information for decision making.

b. To provide information for planning, controlling, evaluating and continuous improvement.

c. To prepare external reports for investors, creditors, government agencies, and other outside users.

d. To provide information for costing of services, products, and other objects of interest to management.

C) The ending finished goods inventory budget supplies information needed for the

a. Cost of goods sold budget.

b. Sales budget.

c. Budgeted income statement.

d. Cash budget.

e. All of these choices are correct.

D) The formula that can be used to calculate sales dollars necessary in order to earn a target income is:

a. (Fixed costs + Target income )/(1 - Sales ratio)

b. (Fixed costs + Variable costs)/(1 - Variable cost ratio)

c. (Fixed costs + Contribution margin)/(Contribution margin ratio)

d. (Fixed costs + Target income)/(Contribution margin ratio)

e. All of these choices are correct.