correct answer
33) Liquidity refers to: A) Financial leverage B) The readiness of an asset to be converted to cash ) The period until cash is used and refinancing becomes necessary D) The amount of cash on hand at a given time 34) The current ratio is calculated as: A) Current assets divided by total liabilities B) Current assets divided by noncurrent assets c) Current assets divided by current liabilities D) Current assets divided by total assets 35) The acid-test ratio is also known as the A) Quick ratio. C) Debt to equity ratio. B) Times interest earned ratio. D) Current ratio. 36) Working capital is equal to: A) Current assets plus current liabilities. B) Current assets minus current liabilities C) Current assets. D) Current liabilities. 37) Which of the following is not a financing ratio? A) Current ratio. C) Return on shareholders' equity. B) Debt to equity ratio. D) Times interest earned ratio. 38) Accrued liabilities: A) Result from payment before services are received. B) Result from services received before payment. 9 Are generally paid in services rather than cash. D) Are deferred charges to expense. 39) A subsequent event for an entity with a December 31, 2016, year-end would not include: A) A major uncertainty at December 31, resolved in January 2017. B) A change in the estimated useful lives of equipment in January 2017 ) An acquisition of another company in January 2017 D) An issuance of bonds in January 2017. 40) An example of fraud would be: A) Buying raw materials from an affiliated company. B) Knowingly classifying a material noncurrent receivable as a current receivable. C) Forgetting to accrue salaries and wages payable. D) Issuing a purchase order without first securing bids 41) Temporary accounts would not include: A) Depreciation expense. ) Salaries payable. B) Cost of goods sold. D) Supplies expense. MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question 1) Which of the following is a philosophy of providing customers with superior products and services A) Supply chain management 9ERP B) Total quality managment D) Just-in-time (T) 2) Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed ONLY when customer orders need to be filled? A) Total quality management 21 B) Supply chain management D) Just-in-time IT) CERP 3) What is the name given to software systems that can integrae all of a companys worldwide functions, departments and data into a single system A) Enterprise Resource Planning C) All in One Software B) Total Integrated Software D) Just-in-time 4) To which of the following stakeholders is management responsible for generating a profit? A) Customers C Credinors D) Owners B) Employees 5) To which of the following stakeholders is management responsible for providing quality products for a reasonable price? A) Employees 5) C) Creditors D) Customers B) Owners 6) Employees expect the organization they work for to do which of the follow ing? A) Provide a safe, productive work environment B) Generate a profit. C) Provide reliable products tor a reasonable price D) Pay tases timely. 7) What is the purpose of supply chain management? A) Speed delivery of goods and services 77 B) Improve quality D) All of the above C) Reduce costs 8) The primary goal of financial accounting is to provide intormation to whidh of the following? A) shareholders D) both A and B B) creditors C) management 9) The primary goal of managerial accounting is to provide information to which of the following? A) management C) creditors 9) B) investors D) external auditors 10) Which of the following are the decision makers inside of a company? B) shareholders 10) C) creditors A) bookkeepers D) managers 11) Which role are managers performing when they choose goals and determine how to achieve them? A) controlling C) hiring 11) B) decision making D) planning 12) Which of the following are period costs? 12) A) current liabilities on the balance sheet B) current assets on the balance sheet C) costs incurred and expensed in the accounting period D) costs related to the sale of products 13) Which of the following is a characteristic of a service company? A) It does not have tangible products intended for sale B) It has a single category of inventory c) It makes a product D) It transforms raw materials into finished goods 13) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the questic 25) Indicate whether each of the following costs is a product cost or a period cost. A) B) direct materials used factory utilities salespersons' commissions salary of plant manager indirect materials used F) depreciation on store equipment indirect labor incurred advertising expense H) I) J) K) direct labor incurred factory machinery repairs and maintenance depreciation store supplies used plant insurance expired factory machinery on L) M) 26) Use the correct number to designate each item below. 1. direct materials selling and general expenses manufacturing overhead 4. direct labor 2. 3. factory building rent expense on sales supplies used factory supplies used indirect materials used A) D) wages of assembly line personnel cost of primary material used to make product depreciation on office equipment rent on office facilities insurance expired F) G) ) I) factory equipment on utilities incurred in the office advertising expense taxes paid K) L) factory building on 25
