QUESTION 21

In a bank reconciliation, checks that remain outstanding are:

		deducted from the bank statement balance
		added to the bank statement balance.
		deducted from the company's cash ledger account.
		added to the company's cash ledger account.

2.5 points

QUESTION 22

Contributory income is the income for a department, after indirect expenses have been deducted.

		True
		False

2.5 points

QUESTION 23

A decentralized departmental operation where managers are made accountable for their performance and the performance of employees in their department is known as:

		responsibility accounting
		decentralized accounting
		performance accounting
		accounting decentralization

2.5 points

QUESTION 24

A direct expense is:

		controllable by the accountant employed by the business
		deducted from a department's contributory income
		the responsibility of, and controllable by, a department head
		allocated to a department without a supporting invoice

2.5 points

QUESTION 25

Comparative horizontal balance sheets show the:

		Various asset, liability, and stockholder's equity account balances as a percentage of total sales revenue
		Change in the individual account balances in dollars from one period to the next
		Change in the individual account balances in percentage terms from one period to the next
		Change in the individual account balances in both dollar and percentage terms from one period to the next

2.5 points

QUESTION 26

Sales Revenue

Food Operations = $458,602

Beverage Operations = $180,509

Total Sales Revenue = $639,111

Cost of Food Sales

Beginning Inventory = $6,128

Ending Inventory = $5,915

Purchases = $181,110

Calculate:

The Cost of Food Available: $_______

The Cost of Food Sold: $_______

Cost of Food Sold as Percentage of Sales: ________%

		The Cost of Food Available: $186,238 The Cost of Food Sold: $180,323 The Cost of Food Sold as Percentage of Sales: 40.6%
		The Cost of Food Available: $187,238 The Cost of Food Sold: $181,323 The Cost of Food Sold as Percentage of Sales: 37.9%
		The Cost of Food Available: $187,238 The Cost of Food Sold: $181,323 The Cost of Food Sold as Percentage of Sales: 39.5%
		The Cost of Food Available: $187,238 The Cost of Food Sold: $178,323 The Cost of Food Sold as Percentage of Sales: 41.4%

2.5 points

QUESTION 27

A food division had beginning inventory of $4,400, purchases of $8,400, and ending inventory of $2,880 for a given week of operations. Determine the cost of goods used ---for the week

		$8,920
		$7,920
		$9,920
		$6,920

2.5 points

QUESTION 28

An example of a contra account is

		Accumulated depreciation
		Dividends
		A prepaid
		Accumulated depreciation and dividends are both correct answers

2.5 points

QUESTION 29

A motel has established a petty cash fund with a limit of $100. During the month of March, the following disbursements were made from the fund:

Petty Cash Disbursements
March	Amount	Purpose
1	$16.50	Postage Stamps
2	5.31	Office Supplies
4	14.27	Plants and flowers
6	4.95	Cleaning supplies
8	5.00	Refund to a motel guest
11	16.50	Postage Stamps
15	9.20	Casual labor
20	6.54	Office supplies
24	2.18	Telegram
Total		Ending Balance $19.55

Receipts or vouchers supported all disbursements. Calculate the amount to be reimbursed to petty cash fund.

		$19.95
		$80.45
		$88.45
		$100.00

2.5 points

QUESTION 30

	Food Division	Beverage Division	Totals
Sales Revenue	$484,200	$144,400	$628,600
Direct Costs	(232,416)	(60,648)	(293,064)

Calculate contributory income and contributory income as a % for each divisions, the overall contributory income, and the overall contributory income as a %:

	Food Division	Beverage Division	Totals
Contributory income	$241,784	$93,752	$335,536
Contributory Income as % Sales	50%	65%	55%

	Food Division	Beverage Division	Totals
Contributory income	$240,416	$95,120	$335,536
Contributory Income as % Sales	50%	66%	45%

	Food Division	Beverage Division	Totals
Contributory income	$251,784	$83,752	$335,536
Contributory Income as % Sales	52%	58%	53%

2.5 points

QUESTION 31

A small limited menu restaurant serves only three menu entree items that have the following costs and selling prices:

Item	Cost	Selling Price	Number Sold
1	$2.40	$6.00	50
2	3.40	6.80	40
3	4.20	8.75	55

What is the average food cost percent?

		42.64%
		44.62%
		46.24%

2.5 points

QUESTION 32

Beginning retained earnings were $86,300. During the year, the company had a net loss of $10,200 and paid dividends of $16,800. Ending retained earnings are:

		$92,900
		$113,300
		$79,700
		$59,300

2.5 points

QUESTION 33

A small limited menu restaurant serves only three menu entree items that have the following costs and selling prices:

Item	Cost	Selling Price	Number Sold
1	$2.40	$6.00	50
2	3.40	6.80	40
3	4.20	8.75	55

a) What is the average selling price?

b) What is the weighted average selling price?

		a) $7.00 b) $6.80
		a) $6.95 b) $7.18
		a) $7.18 b) $7.26
		a) $7.26 b) $7.46

2.5 points

QUESTION 34

An income statement shows the operating results of a business operation

		at a point in time
		for a period of time

2.5 points

QUESTION 35

A five-year depreciable asset cost $10,000 and had a residual value of $1,000. What is the balance of its accumulated depreciation account at the end of two years using straight-line depreciation?

		$6,000
		$4,000
		$5,400
		$3,600

2.5 points

QUESTION 36

A restaurant's average check in Year 1 is $20.00, in Year 2 is $21.00, and in Year 3 is $22.00. Using this as a basis, calculate the trend index numbers. The trend index numbers for the three years respectively, would be:

		120, 121, 122.
		100, 121, 122.
		100, 105, 110.
		100, 120, 121.

2.5 points

QUESTION 37

Common-size vertical income statements:

		Express total sales revenue as 100% and show all other items as a percentage of that.
		Show gross profit as 100% and express all other items as a percentage of that.
		Show net income as 100% and express all other items as a percentage of that.
		Show the change from last period's income statement to this period's in percentage terms.

2.5 points

QUESTION 38

Retained earnings at the beginning of the year were $16,500. The hotel's income statement showed a net loss of $7,400 and issued dividends at year end for $5,000. What was the hotel's year ending balance in the retained earnings account?

		$18,900
		$4,100
		$14,100
		$28,900

2.5 points

QUESTION 39

indirect expenses:

		should be allocated to the operating departments on a square foot basis
		should be allocated to the operating departments based on sales revenue
		must be allocated to the operating departments to determine true net income
		allocated to operating departments will not change overall company net income

2.5 points

QUESTION 40

Sales revenue in Year 1 is $3,000 and in Period 2 it is $4,000. The trend index figure for Period 2 (assuming Period 1 is given the value of 100) will be:

		104.0
		130.0
		133.3
		140.0