Williams Sdn Bhd has current assets of RM55,000, which includes inventory worth RM15,000. Current liabilities are RM35,000 and overall net assets are RM120,000. What is the acid test ratio for Williams Sdn Bhd?

Select one:

a. 2:1.

b. 1.14:1.

c. 1.57:1.

d. 1:1.

A company purchased a tract of land for its natural resources at a cost of RM1,500,000. It expects to mine 2,000,000 tons of ore from this land. The residual value of the land is expected to be RM250,000. The depletion expense per ton of ore is:

Select one:

a. RM0.875.

b. RM0.75.

c. RM0.625.

d. RM6.00.

Which of the following statements refers to management accounting information?

Select one:

a. There are no regulations governing the reports.

b. It primarily measures and records business transactions.

c. The reports are generally delayed and historical.

d. The audience tends to be stockholders, creditors, and tax authorities.

The determination of a cost as either direct or indirect depends upon the:

Select one:

a. accounting system

b. cost tracing system

c. allocation system

d. cost object chosen

All of the following statements regarding share dividends are true except:

Select one:

a. Share dividends provide evidence of management's confidence that the company is doing well.

b. Share dividends do not reduce assets or equity.

c. Share dividends decrease the number of shares outstanding.

d. Directors can use share dividends to keep the market price of the shares affordable.

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:

Select one:

a. Investing activities.

b. Direct activities.

c. Operating activities.

d. Financing activities.