ACCT 2004 - Financial Accounting-Winter 2024
43. (Objectives 11-2, 11-6) The Art Appreciation Society operates a museum for the benefit and...
(Objectives 11-2, 11-6) The Art Appreciation Society operates a museum for the benefit and enjoyment of the community. When the museum is open to the public, two clerks who are positioned at the entrance collect a $5.00 admission fee from each nonmember patron. Members of the Art Appreciation Society are permitted to enter free of charge upon presentation of their membership cards. At the end of each day, one of the clerks delivers the proceeds to the treasurer. The treasurer counts the cash in the presence of the clerk and places it in a safe. Each Friday afternoon, the treasurer and one of the clerks deliver all cash held in the safe to the bank and receive an authenticated deposit slip that provides the basis for the weekly entry in the accounting records. The Art Appreciation Society board of directors has identified a need to improve its internal controls over cash admission fees. The board has determined that the cost of installing turnstiles, sales booths, or otherwise altering the physical layout of the museum will greatly exceed any benefits. However, the board has agreed that the sale of admission tickets must be an integral part of its improvement efforts. Smith has been asked by the board of directors of the Art Appreciation Society to review the internal control over cash admission fees and provide suggestions for improvements.
Required
a. Indicate deficiencies in the existing internal controls over cash admission fees that Smith should identify, and recommend one improvement for each of the deficiencies identified. Organize the answer as indicated in the following illustrative example.*
44. The standard cost card contains quantities and costs for
MULTIPLE CHOICE
1. The standard cost card contains quantities and costs for _______. (Points : 1)
2. A total variance is best defined as the difference between total _______. (Points : 1)
3. The term standard hours allowed measures _______. (Points : 1)
4. Which of the following factors should not be considered when deciding whether to investigate a variance? (Points : 1)
5. A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when ______. (Points : 1)
6. The standard predominantly used in Western cultures for motivational purposes is a(n) ____ standard. (Points : 1)
7. Gallagher Corporation. incurred 2,300 direct labor hours to produce 600 units of product. Each unit should take 4 direct labor hours. Gallagher Corporation applies variable overhead to production on a direct labor hour basis. The variable overhead efficiency variance _______. (Points : 1)
8. A variable overhead spending variance is caused by ________. (Points : 1)
9. McCoy Company has the following information available for October when 3,500 units were produced (round answers to the nearest dollar).
Standards:
Material 3.5 pounds per unit @ $4.50 per pound
Labor 5.0 hours per unit @ $10.25 per hour
Actual:
Material purchased 12,300 pounds @ $4.25
Material used 11,750 pounds
17,300 direct labor hours @ $10.20 per hour
What is the labor rate variance? (Points : 1)
10. McCoy Company has the following information available for October when 3,500 units were produced (round answers to the nearest dollar).
Standards:
Material 3.5 pounds per unit @ $4.50 per pound
Labor 5.0 hours per unit @ $10.25 per hour
Actual:
Material purchased 12,300 pounds @ $4.25
Material used 11,750 pounds
17,300 direct labor hours @ $10.20 per hour
What is the labor efficiency variance? (Points : 1)
11. Joint costs are useful for _______. (Points : 1)
12. Each of the following is a method to allocate joint costs except _______. (Points : 1)
13. When allocating joint process cost based on tons of output, all products will _______. (Points : 1)
14. Scrap is defined as a _______. (Points : 1)
15. Waste created by a production process is _______. (Points : 1)
16. In a lumber mill, which of the following would most likely be considered a primary product? (Points : 1)
17. Fisher Company produces three products from a joint process. The products can be sold at split-off or processed further. In deciding whether to sell at split-off or process further, management should _______. (Points : 1)
18. The split-off point is the point at which _______. (Points : 1)
19. A product may be processed beyond the split-off point if management believes that _______. (Points : 1)
20. Which of the following is a commonly used joint cost allocation method? (Points : 1)
45. Name three approaches to break-even analysis. Briefly explain ho
Name three approaches to break-even analysis. Briefly explain how each approach works.
46. X purchased a machine on hire purchased system. The total cash price of the machine is...
X purchased a machine on hire purchased system. The total cash price of the machine is 31,960.down payment 8,000and three instalments of 12,000,10,000,4,000 payable at the end of the first, second and third year's respectively. Interest is charged 5% p. a. Charge depreciation at 10% on straight line method. Prepare ledger accounts in the books of x.
47. Exchange rate shifts that cause the Sing$ to be weaker versus the Brazilian real a.make the export...
. | Exchange rate shifts that cause the Sing$ to be weaker versus the Brazilian real | |
a. | make the export of footwear from Asia-Pacific plants to Latin America less competitive and give rise to negative/favorable exchange rate cost adjustments. | |
b. | make the export of footwear from Asia-Pacific plants to Latin America less competitive and give rise to positive/unfavorable exchange rate cost adjustments. | |
c. | make the export of footwear from Asia-Pacific plants to Latin America more competitive and give rise to negative/favorable exchange rate cost adjustments. | |
d. | make the export of footwear from Asia-Pacific plants to Latin America less competitive and give rise to negative/unfavorable exchange rate cost adjustments. | |
e. | None of the above is accurate. | |
47. Multiple Choice 1) ________ is defined as a group of people working together to achieve a common...
Multiple Choice
1) ________ is defined as a group of people working together to achieve a common goal via a process of feedback and iteration.
A) Cooperation
B) Groupthink
C) Collaboration
D) Brainstorming
2) Which of the following is true of collaboration?
A) Iterations should be avoided for the smooth functioning of the collaborative process.
B) Group members should not review each other's work negatively.
C) Multiple iterations and feedback improve collaboration.
D) Collaboration is more effective if it takes place at the final stage of a project.
3) In a collaborative team, the work proceeds in a series of steps in which one person produces something, others criticize it, and then a revised version is produced. These steps are known as ________.
A) iterations
B) alternatives
C) redundancies
D) repetitions
4) Which of the following is true of students working cooperatively?
A) They set forth an initial idea or work product.
B) They work to accomplish their assignment independently.
C) They revise the work product in accordance with feedback.
D) They provide feedback to one another on the ideas.
5) Which of the following is true of students working collaboratively?
A) They merge their independent work for grading purposes.
B) They work to accomplish their assignment independently.
C) They divide the work into separate assignments for each student.
D) They provide feedback to one another on the ideas.
6) Which of the following is necessary for a collaboration to be successful?
A) Collaborators should resist putting forward unpopular ideas.
B) Collaborators should avoid entering into difficult conversations.
C) Members must provide and receive critical feedback.
D) Everyone in the group should be too polite to say anything critical.
7) ________ is the single most important collaboration skill.
A) Giving and receiving critical feedback
B) Being a perceptive listener
C) Being self-managing
D) Willing to put forward unpopular ideas
8) Which of the following approaches to teamwork will provide the best results?
A) Sarah disagrees with the project plan but does not voice her opinion, because she doesn't want to disrupt the functioning of the team.
B) Andrew believes that conflict is healthy for teamwork and doesn't hesitate to criticize the shortcomings of his coworkers.
C) Caleb and Adam hold opposing political views, but do not discuss their opinions while working, so that other team members aren't distracted.
D) Daniel is the team leader and discourages disagreements among team members so that the project can proceed faster.
9) The two key characteristics of collaboration are ________.
A) qualities and skills
B) iteration and feedback
C) decision-making and problem-solving
D) ideas and work products
10) Which of the following is a primary criterion for judging team success?
A) giving and receiving critical feedback
B) striving to attain balance
C) demonstrating commitment to the group
D
48. The accounting equation can be stated as which of the following? A) Assets - liabilities = owner...
The accounting equation can be stated as which of the following? A) Assets - liabilities = owners' equity B) Assets + liabilities = owners' equity C) Liabilities + assets = owners' equity D) Owners' equity + assets = liabilities E) Liabilities - owners' equity assets Notes Payable are classified as A) equity. B) assets. C) owner investments. D) liabilities. E) expenses.
49. Which of the following is not a measure of asset utilization?
Which of the following is not a measure of asset utilization?
- Inventory turnover.
- Average accounts receivable collection period.
- Fixed asset turnover.
- Debt to total assets.
50. Multiple-choice questions 1.The entity that is represented by a single set of consolidated financial
Multiple-choice questions
1.The entity that is represented by a single set of consolidated financial statements is:
a.an economic entity.
b.a parent entity.
c.a subsidiary entity.
d.a consolidated entity.
2.AASB 10 Consolidated Financial Statements defines a ‘parent’ and a ‘subsidiary’ as which of the following?
Parent | Subsidiary | |
a. | An entity which is controlled by another entity. | An entity that controls one or more entities. |
b. | An entity which owns more than 20% of the voting shares of another entity. | An entity which is owned partly by another entity. |
c. | An entity that has one or more subsidiaries. | An entity which is controlled by a parent entity. |
*d. | An entity that controls one or more entities. | An entity which is controlled by another entity. |
3.A single set of financial statements that combines the separate sets of financial statements for all entities within an economic entity, is known as:
a.a concise financial report.
b.a condensed financial report.
c.combined financial statements.
d.consolidated financial statements.
4.A group of entities comprised of Kerri Limited (parent entity), Georgia Limited (subsidiary entity) and Emily Limited (subsidiary entity) have the following inventory balances.
- Kerri Limited $41 000
- Georgia Limited $14 000
- Emily Limited $12 000
Which of the following amounts is shown as the consolidated inventory balance in the consolidated financial statements?
a.$12 000
b.$14 000
c.$26 000
d.$67 000
5.The process of preparing consolidated financial statements requires that:
a.no adjustments be made to the individual financial statements or ledger accounts of the entities in the group.
b.adjusting journal entries be recorded in the ledger accounts of the subsidiaries only.
c.accruals of expenses and revenues be recorded directly into the retained earnings account of the parent entity.
d.adjusting journal entries be recorded in the ledger accounts of the parent only.
6. When one entity controls another entity, the business combination results in which of the following types of relationship?
a. Parent–subsidiary
b. Investor–investee
c. Investor–associate
d. Parent–child
7. The process of preparing the combined financial statements of a group of entities is known as:
a. aggregation.
b. combination.
c. accumulation.
d. consolidation.
8. The reasons for the preparation of consolidated financial statements include which of the following?
a. Reporting of risks and benefits
b. Comparable information
c. Supply of relevant information
d. All of the above
9. For the purposes of consolidated financial reporting, a group is:
a. an investor and its investees.
b. a parent entity and all its subsidiaries.
c. an entity that has one or more subsidiaries.
d. an entity that is controlled by a parent.
10. A subsidiary is an entity that:
a. has significant influence over a parent entity.
b. exercises control over a parent entity.
c. has the power to control a parent entity.
d. is controlled by another entity.