The debt ratio indicates the percentage of: Multiple Choice Total assets financed by long-term mortgages. Total assets financed by creditors. Total liabilities classified as current. Revenue consumed by interest expense. Which of the following is not a characteristic of managerial accounting? Multiple Choice Information may be tailored to assist in specific managerial decisions. Its purpose is to assist managers in planning and controlling business operations. Reports are used primarily by insiders rather than by persons outside of the business entity. Information must be developed in conformity with generally accepted accounting principles or with income tax regulations. Manufacturing costs do not include: Multiple Choice Selling expenses related to goods manufactured during the period. Manufacturing overhead charged to work in process during the period. Direct materials used during the period. Direct labor applicable to production within the period. The cost of the employee who installs the leather on the seats of a new automobile would be considered: Multiple Choice Indirect labor. Direct labor. Manufacturing overhead. Direct material. Quick assets include which of the following? Multiple Choice Cash, marketable securities, and inventories. Market securities, receivables, and inventories. Cash, marketable securities, and receivables. Cash, prepaid rent, and receivables. A job cost sheet should: Multiple Choice Contain information on each individual job in process. Contain only the direct costs of a particular job. Contain information that summarizes all jobs finished. Only be used for jobs that have been completed. The cost of salaries paid to employees who work in a factory maintaining the heating system is considered: Multiple Choice Direct labor. Factory overhead. Indirect materials. General and administrative costs. 5 A predetermined overhead application rate: Multiple Choice Can be determined by dividing budgeted direct labor cost by the budgeted factory overhead costs. Applies the same amount of overhead to each product or service. Is computed at the end of the period once actual overhead costs are known. Expresses an expected relationship between overhead costs and an activity base. The cost of the employee who installs the leather on the seats of a new automobile would be considered: Multiple Choice Indirect labor. Direct labor. Manufacturing overhead. Direct material. The cost of salaries paid to employees who work in a factory maintaining the heating system is considered: Multiple Choice Direct labor. Factory overhead. Indirect materials. General and administrative costs. A predetermined overhead application rate: Multiple Choice Can be determined by dividing budgeted direct labor cost by the budgeted factory overhead costs. Applies the same amount of overhead to each product or service. Is computed at the end of the period once actual overhead costs are known. Expresses an expected relationship between overhead costs and an activity base. When a job is completed: Multiple Choice Cost of goods sold is debited. Materials inventory is credited. Finished goods inventory is debited. Work-in-process inventory is debited. Which of the following is not a product cost? Multiple Choice The real estate tax of the showroom. An employee working directly on assembling a car. Depreciation on a warehouse where raw materials are stored. The leather seats of a motorcycle. Manufacturing companies normally have three types of inventory: Multiple Choice Economy, standard, and deluxe. Work in process, finished goods, and returned merchandise. Direct materials, direct labor, and manufacturing overhead. Raw materials, work in process, and finished goods. The term, classified financial statements, refers to: Multiple Choice The financial statements of defense contractors working on secret projects. Financial statements prepared for use by management, but not for distribution outside of the organization. Financial statements in which items with certain characteristics are placed together in a group in an effort to de useful subtotals. The financial statements of all companies working on govemment projects. A comparative financial statement: Multiple Choice Places two or more years of a financial statement side-by-side in order to compare results. Places the dollar amounts next to the percentage amounts of a given year for the income statement. Places the financial statements of two or more companies side-by-side in order to compare results. Places the statement of financial position (balance sheet), the income statement, and the statement of cash flo by-side in order to compare the results. One number expressed as a percentage of another is called: Multiple Choice Trend percentages. Component percentages. Ratios. Money changes. A job order cost system would be appropriate in the manufacturing of: Multiple Choice Paints. Custom-made furniture. Standard-grade plywood. Breakfast cereal. One number expressed as a percentage of another is called: Multiple Choice Trend percentages. Component percentages. Ratios. Money changes. A job order cost system would be appropriate in the manufacturing of: Multiple Choice Paints. Custom-made furniture. Standard-grade plywood. Breakfast cereal. The excess of current assets over current liabilities is called: Multiple Choice Working capital. Debt ratio. Current ratio. Quick ratio. In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is more likely to: Multiple Choice View the entire organization as the reporting entity. Focus upon the operating results of the most recently completed accounting period. Be used by decision makers outside of the business organization. Be tailored to the specific needs of an individual decision maker. Mirisiele Chaice prefie Hen baies Hise income Thes sinh