Q1

Current assets are expected to be converted to cash or sold or consumed within ________.?

A.

one year or operating cycle if longer than one year

B.

one fiscal year

C.

one year or operating cycle if shorter than one year

D.

one year or operating cycle if longer than one month

Q2

Treasury stock is ________.

A.

unissued shares of stock

B.

shares of stock held in other companies for investment purposes

C.

the number of shares of stock that cannot be sold in the future

D.

shares of stock already issued that are later repurchased by the corporation that originally issued them

Q3

When developing cost functions, which of the following statements is FALSE?

A.

Personal observations of costs and activities provide the best evidence of a plausible relationship between a cost and its cost driver.

B.

The cost function does not have to be plausible.

C.

The cost function must be believable.

D.

The cost function should explain past cost behavior.

Q4;

________ have no obvious relationship to levels of output activity, but are determined as part of the periodic planning process.

A.

Engineered costs

B.

Committed fixed costs

C.

Discretionary fixed costs

D.

Capacity costs

Q5:

The income statement summarizes a company's operating performance ________ and the balance sheet shows a company's financial position ________.

A.

at a point in time; over a period of time

B.

over a period of time; at a point in time

C.

over a period of time; over a period of time

D.

at a point in time; at a point in time

Q6

The cash basis of accounting recognizes the impact of transactions in the period when________.

A.

assets or liabilities change

B.

revenues and expenses occur

C.

the accounting equation changes

D.

cash is received or disbursed

Q 7

In an efficient capital market, the role of accounting information is to ________.

A.

help investors find underpriced securities

B.

help investors identify the different degrees of risk among different securities

C.

help investors find low risk securities

D.

help investors find overpriced securities