Question 23

Most of the manufacturing costs for a product are determined in the:

	A.	design stage.
	B.	preproduction stage.
	C.	at maturity.
	D.	during production.

2 points

Question 24

Which of the following are relevant in deciding whether to accept or reject a special order?

	A.	The impact the order will have on existing business.
	B.	The price that will be charged on the special order.
	C.	The incremental cost of filling the special order.
	D.	All of the above.

2 points

Question 25

Which of the following statements about prices and profit is true?

	A.	Higher prices combine with lower demand to change the level of profits.
	B.	Higher prices always lead to lower demand and lower profits.
	C.	Higher prices will be offset by lower demand so profits will stay constant.
	D.	Higher prices always lead to higher profits.

Question 34

Cash flows related to long-term liabilities and stockholders' equity items are classified as:

	A.	investing activities.
	B.	financing activities
	C.	operating activities.
	D.	non-cash activities.

2 points

Question 35

Cash received from interest and dividends is classified on the statement of cash flows as:

	A.	financing cash outflows.
	B.	financing cash inflows.
	C.	investing cash inflows.
	D.	operating cash inflows.

2 points

Question 36

Cash flows from investing activities include all of the following, except:

	A.	collections from long-term loans.
	B.	collection of interest on a note receivable.
	C.	proceeds from the sale of a building.
	D.	investments in other companies' securities.

2 points

Question 37

Cash flows related to buying and selling long-term assets are classified as:

	A.	non-cash activities.
	B.	investing activities.
	C.	operating activities.
	D.	financing activities.

2 points

Question 38

Cash flows relating to financing activities include:

	A.	payment of principal on notes payable.
	B.	payment of interest on notes payable.
	C.	receipt of dividends from stock investments.
	D.	making loans to other entities.