Published:
7 months ago
Achieve Distinction in Accounting Research Paper
categories:
Online course help
46. 121. The cash budget reflects a. all revenues and all expenses for a period. b. expected cash receip121. The
cash budget reflects
a. all revenues and all expenses for a period.
b. expected cash receipts and cash disbursements
from all sources.
c. all the items that appear on a budgeted
income statement.
d. all the items that appear on a budgeted
balance sheet.
122. The following credit sales are budgeted by Terra
Co.:
January $204,000
February 300,000
March 420,000
April 360,000
The
company’s past experience indicates that 70% of the accounts receivable are
collected in the month of sale, 20% in the month following the sale, and 8% in
the second month following the sale. The anticipated cash inflow for the month
of April is
a. $370,320.
b. $336,000.
c. $360,000.
d. $352,800.
123. Hyde Corp.’s cash
budget showed total available cash less cash disbursements.
What does this amount equal?
a. Ending
cash balance
b. Total
cash receipts
c. The
excess of available cash over cash disbursements
d. The amount of financing required
124. Which one of the following sections would not appear on a cash budget?
a. Cash receipts
b. Financing
c. Investing
d. Cash disbursements
125. A company’s past experience indicates that
60% of its credit sales are collected in the month of sale, 30% in the next
month, and 5% in the second month after the sale; the remainder is never
collected. Budgeted credit sales were:
January $360,000
February 216,000
March 540,000
The cash inflow in the month of March
is expected to be
a. $406,800.
b. $307,800.
c. $324,000.
d. $388,800.
126. Which one of the following items would
never appear on a cash budget?
a. Office salaries expense
b. Interest expense
c. Depreciation expense
d. Travel expense
127. Correy Inc. reported the following
information for 2013:
October November December
Budgeted sales $460,000 $440,000 $540,000
Budgeted purchases $240,000 $256,000 $288,000
·
All sales are on credit.
·
Customer amounts on account are
collected 50% in the month of sale and 50% in the following month.
·
Cost of goods sold is 35% of
sales.
·
Correy purchases and pays for
merchandise 60% in the month of acquisition and 40% in the following month.
·
Accounts payable is used only
for inventory acquisitions.
How much cash will Correy receive during November?
a. $220,000
b. $490,000
c. $450,000
d. $440,000
128. Correy Company reported the following information for 2013:
October November December
Budgeted sales $460,000 $440,000 $540,000
Budgeted purchases $240,000 $256,000 $288,000
·
Cost of goods sold is 35% of
sales.
·
Correy purchases and pays for
merchandise 60% in the month of acquisition and 40% in the following month.
·
Accounts payable is used only
for inventory acquisitions.
How much is the budgeted balance for Accounts Payable at October 31,
2013?
a. $96,000
b. $144,000
c. $204,000
d. $102,400
129. Petal Co. reported the
following information for 2013:
October November December
Budgeted
sales $930,000 $870,000 $1,080,000
·
All sales are on credit.
·
Customer amounts on account are
collected 50% in the month of sale and 50% in the following month.
How much is the November 30, 2013 budgeted Accounts Receivable?
a. $900,000
b. $540,000
c. $465,000
d. $435,000
130. Bean Manufacturing
reported the following information for 2013:
October November December
Budgeted purchases $240,000 $256,000 $288,000
·
Operating expenses are:
Salaries, $100,000; Depreciation, $40,000; Rent, $20,000; Utilities, $28,000
·
Operating expenses are paid
during the month incurred.
·
Accounts payable is used only
for inventory acquisitions.
How much is the budgeted amount of cash to be paid for
operating expenses in November?
a. $404,000
b. $148,000
c. $188,000
d. $444,000
131. During September, the capital expenditure budget indicates a $420,000
purchase of equipment. The ending September cash balance from operations is
budgeted to be $60,000. The company wants to maintain a minimum cash balance of
$30,000. What is the minimum cash loan that must be planned to be borrowed from
the bank during September?
a. $330,000
b. $360,000
c. $450,000
d. $390,000
Ans: d, LO: 5, Bloom: AP, Difficulty: Medium, Min: 5,
AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement,
AICPA PC: Problem Solving, IMA: Budget Preparation
132. Young Co. has budgeted its activity for
December according to the following information:
1. Sales
at $600,000, all for cash.
2. Budgeted
depreciation for December is $15,000.
4. The
cash balance at December 1 was $15,000.
5. Selling
and administrative expenses are budgeted at $60,000 for December and are paid
for in cash.
6. The
planned merchandise inventory on December 31 and December 1 is $18,000.
7. The
invoice cost for merchandise purchases represents 75% of the sales price. All
purchases are paid in cash.
How much are the budgeted cash disbursements for December?
a. $345,000
b. $510,000
c. $525,000
d. $492,000
133. Dex
Industries expects to purchase $120,000 of materials in March and $140,000 of
materials in April. Three-fourths of all purchases are paid for in the month of
purchase,
and the other one-fourth are paid for in the month following the month ofpurchase. In addition, a 2% discount is received for payments made
in the month of purchase. How much will April’s cash disbursements for
materials purchases be?
a. $88,200
b. $108,200
c. $132,900
d. $120,000
134. On
January 1, Witt Company has a beginning cash balance of $126,000. During the
year, the company expects cash disbursements of $1,020,000 and cash receipts of
$870,000. If Witt requires an ending cash balance of $120,000, Witt Company
must borrow
a. $96,000.
b. $120,000.
c. $144,000.
d. $276,000.
135. Mapleview, Inc. has
the following budgeted sales: July $200,000, August $300,000, and September $250,000.
40% of the sales are for cash and 60% are on credit. For the credit sales, 50%
are collected in the month of sale, and 50% the next month. The total expected
cash receipts during September are
a. $280,000.
b. $265,000.
c. $262,500.
d. $250,000.
136. Burr,
Inc.’s direct materials budget shows total cost of direct materials purchases
for April $400,000, May $480,000 and June $560,000. Cash payments are 60% in
the month of purchase and 40% in the following month. The budgeted cash
payments for June are
a. $528,000.
b. $512,000.
c. $480,000.
d. $416,000.
137. Which one of the following budgets would be
prepared for a manufacturer but not for a merchandiser?
a. Direct labor budget
b. Cash budget
c. Sales budget
d. Budgeted income statement
138. The formula for determining budgeted
merchandise purchases is budgeted
a. production + desired ending inventory –
beginning inventory.
b. sales + beginning inventory – desired ending
inventory.
c. cost of goods sold + desired ending inventory
– beginning inventory.
d. cost of goods sold + beginning inventory –
desired ending inventory.
139. Which one of the following is a problem resulting from a service
company being overstaffed?
a. Labor
costs will be disproportionately low.
b. Profits
will be higher because of the additional salaries.
c. Staff
turnover may increase.
d. Revenue may be lost.
140. The master budget for a service enterprise
a. will have the same types of budgets as a
merchandiser.
b. may include a sales budget for sales revenue.
c. will not include a budgeted income statement.
d. includes a service revenue budget based on
expected client billings.
141. Budgeting in not-for-profit organizations
a. is not important because they are not
profit-oriented.
b. usually starts with budgeting expenditures,
rather than receipts.
c. is necessary only if some product is produced
and sold.
d. consists entirely of budgeted contributions.
142. For a merchandiser, the starting point in
the development of the master budget is the
a. cash budget.
b. sales budget.
c. selling and administrative expenses budget.
d. budgeted income statement.
143. Instead of a production budget, a
merchandiser will prepare a
a. pseudo-production budget.
b. merchandise purchases budget.
c. master time sheet.
d. sales forecast.
144. Orange Co. is a
manufacturer and Pineapple Company is a merchandiser. What is the
difference in the budgets the two entities will prepare?
a. Orange
Co. will prepare a production budget, and Pineapple Company will
prepare a merchandise purchases budget.
b. Orange
Co. will prepare a sales forecast, and Pineapple Company will
prepare a sales budget.
c. Pineapple
Company will prepare a production budget, and Orange Co. willprepare
a merchandise purchases budget.
d. Both companies will prepare
the same types of budgets.
145. An appropriate activity index for a college
or university for budgeting faculty positions would be the
a. faculty hours worked.
b. number of administrators.
c. credit hours taught by a department.
d. number of days in the school term.
146. A critical factor in budgeting for a
service firm is to
a. hire professional staff to perform the
budgeting work.
b. coordinate professional staff needs with
anticipated services.
c. classify all personnel as either variable or
fixed.
d. budget expenditures before anticipated
receipts.
147. The primary benefits
of budgeting include all of the following except it
a. requires
only top management to plan ahead and formalize theirfuture goals.
b. provides
definite objectives for evaluating performance.
c. creates
an early warning system for potential problems.
d. motivates
personnel throughout the organization.
148. The responsibility for
expressing management’s budgeting goals in financial terms is performed by the
a. accounting
department.
b. top
management.
c. lower
level of management.
d. budget
committee.
149. Coordinating
the preparation of the budget is the responsibility of the
a. treasurer.
b. president.
c. chief
accountant.
d. budget committee.
150. For better
management acceptance, the flow of input data for budgeting should begin with
the
a. accounting
department.
b. top
management.
c. lower
levels of management.
d. budget
committee.
151. In
the direct materials budget, the quantity of direct materials to be purchased
is computed by adding direct materials required for production to
a. desired
ending direct materials.
b. beginning
direct materials.
c. desired
ending direct materials less beginning direct materials.
d. beginning direct materials
less desired ending direct materials.
152. Grey
Company has 24,000 units in beginning finished goods. If sales are expected to
be 120,000 units for the year and Grey desires ending finished goods of 30,000
units, how many units must the company produce?
a. 114,000
b. 120,000
c. 126,000
d. 150,000
153. The important
end-product of the operating budgets is the
a. budgeted
income statement.
b. cash
budget.
c. production
budget.
d. budgeted balance sheet.
154. On January 1, Kale Company has a beginning cash
balance of $42,000. During the year, the company expects cash disbursements of
$340,000 and cash receipts of $290,000. If Kale requires an ending cash balance
of $40,000, the company must borrow
a. $32,000.
b. $40,000.
c. $48,000.
d. $92,000.
155. The
budget that is often considered to be the most importantfinancial
budget is the
a. cash
budget.
b. capital
expenditure budget.
c. budgeted
income statement.
d. budgeted balance sheet.
156. Lark
Corp.’s direct materials budget shows total cost of direct materials purchases
for January $250,000, February $300,000 and March $350,000. Cash payments are
60% in the month of purchase and 40% in the following month. The budgeted cash
payments for March are
a. $330,000.
b. $320,000.
c. $300,000.
d. $260,000.
157. A
purchases budget is used instead of a production budget by
a. merchandising
companies.
b. service
enterprises.
c. not-for-profit
organizations.
d. manufacturing
companies.
158. Which
of the following statements is incorrect?
a. A
continuous twelve-month budget results from dropping the month just ended and
adding a future month.
b. The
production budget is derived from the direct materials and direct labor
budgets.
c. The
cash budget shows anticipated cash flows.
d. In
the budget process for not-for-profit organizations, the emphasis is on cash
flow rather than on revenue and expenses.
47. 21) Which type of infrastructure services provides voice and video connectivity to employees,...
21) Which type of infrastructure services provides voice and video connectivity to employees, customers, and suppliers?
A) networking
B) telephone
C) VOIP
D) telecommunications
22) Which of the following is not an IT infrastructure service component?
A) operating system software
B) computing platforms to provide a coherent digital environment
C) physical facility management to manage the facilities housing physical components
D) IT management services to plan and develop the infrastructure and provide project management
23) Place the following eras of IT infrastructure evolution in order, from earliest to most recent: 1. Cloud Computing Era; 2. Client/Server; 3. Enterprise Era; 4. Personal Computer; and 5. Mainframe and Minicomputer.
A) 4, 5, 3, 2, 1
B) 5, 4, 2, 3, 1
C) 4, 5, 2, 3, 1
D) 5, 4, 2, 1, 3
24) The introduction of the minicomputer
A) allowed computers to be customized to the specific needs of departments or business units.
B) enabled decentralized computing.
C) offered new, powerful machines at lower prices than mainframes.
D) all of the above.
25) A client computer networked to a server computer, with processing split between the two types of machines, is called a(n)
A) service-oriented architecture.
B) on-demand architecture.
C) multi-tiered client/server architecture.
D) two-tiered client/server architecture.
26) In a multi-tiered network
A) the work of the entire network is centralized.
B) the work of the entire network is balanced over several levels of servers.
C) processing is split between clients and servers.
D) processing is handled by multiple, geographically-remote clients.
27) Interpretations of Moore's law assert that
A) computing power doubles every 18 months.
B) transistors decrease in size 50% every two years.
C) data storage costs decrease by 50% every 18 months.
D) none of the above.
28) Which of the following factors provides an understanding of why computing resources today are ever more available than in previous decades?
A) network economics
B) law of mass digital storage and Moore's law
C) declining communications costs, universal standards, and the Internet
D) all of the above
29) Today's nanotechnology-produced computer transistors are roughly equivalent in size to
A) the width of a fingernail.
B) a human hair.
C) a virus.
D) an atom.
30) Specifications that establish the compatibility of products and the ability to communicate in a network are called
A) network standards.
B) telecommunications standards.
C) technology standards.
D) Internet standards.
48. 1. Rappaport Corp.'s sales last year were $320,000, and its net income after taxes was $23,000..
1. Rappaport Corp.'s sales last year were $320,000, and its net income after taxes was $23,000. What was its profit margin on sales? (Points : 2)
6.49%
6.83%
7.19%
7.55%
Question 2. 2. Vang Corp.'s stock price at the end of last year was $33.50 and its earnings per share for the year were $2.30. What was its P/E ratio? (Points : 2)
13.84
14.57
15.29
16.06
Question 3. 3. Branch Corp.'s total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets? (Points : 2)
7.22%
7.58%
7.96%
8.36%
Question 4. 4. Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio? (Points : 2)
1.34
1.41
1.48
1.55
Question 5. 5. Orono Corp.'s sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times interest earned (TIE) ratio? (Points : 2)
4.72
4.97
5.23
5.80
Question 6. 6. Which of the following statements is CORRECT? (Points : 2)
The four most important financial statements provided in the annual report are the balance sheet, income statement, cash budget, and the statement of stockholders’ equity.
The balance sheet gives us a picture of the firm’s financial position at a point in time.
The income statement gives us a picture of the firm’s financial position at a point in time.
The statement of cash flows tells us how much cash the firm has in the form of currency and demand deposits.
Question 7. 7. Which of the following statements is CORRECT? (Points : 2)
A reduction in inventories held would have no effect on the current ratio.
An increase in inventories would have no effect on the current ratio.
If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.
A reduction in the inventory turnover ratio will generally lead to an increase in the ROE.
Question 8. 8. Which of the following items cannot be found on a firm’s balance sheet under current liabilities?
(Points : 2)
Accounts payable.
Short-term notes payable to the bank.
Accrued wages.
Cost of goods sold.
Question 9. 9. Which of the following items is NOT included in current assets? (Points : 2)
Accounts receivable.
Inventory.
Bonds.
Cash.
Question 10. 10. Other things held constant, which of the following actions would increase the amount of cash on a company’s balance sheet? (Points : 2)
The company repurchases common stock.
The company pays a dividend.
The company issues new common stock.
The company gives customers more time to pay their bills.
49. 1) A special journal is an accounting journal designed to record one specific type of transaction...
1) A special journal is an accounting journal designed to record one specific type of transaction.
2) The general journal is used to record all transactions that do not fit one of the special journals.
3) Cash in the chart of accounts is an example of a control account.
4) Special journals save much time in recording repetitive transactions and posting to the ledgers.
5) Transactions must be recorded in either the general journal or a special journal, but not both.
6) A subsidiary ledger is a group of accounts that provides supporting details on individual balances, the total of which appears in a general ledger account.
7) A subsidiary ledger is a book of accounts that provides supporting details on individual balances, the total of which appears in the general journal.
8) Transactions in the sales journal are posted both to the general ledger and the accounts payable subsidiary ledger.
9) The sum of the account balances in the accounts receivable subsidiary ledger should equal the balance in the accounts receivable account in the general ledger.
10) The seller would record the return of merchandise sold on account in the sales journal.
50. 157. On the first day of the fiscal year, a company issues a $500,000, 8%, 10 year bond that...
157. On the first day of the fiscal year, a company issues a $500,000, 8%, 10 year bond that pays semi-annual interest of $20,000 ($500,000 ´ 8% ´ 1/2), receiving cash of $437,740. Journalize the entry to record the issuance of the bonds.
158. On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5 year bond that pays semi-annual interest of $35,000 ($1,000,000 ´ 7% ´ 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount using the straight-line method. Round answer to the nearest dollar.
159. On the first day of the fiscal year, a company issues a $800,000, 6%, 5 year bond that pays semi-annual interest of $24,000 ($800,000 ´ 6% ´ 1/2), receiving cash of $690,960. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.
160. On the first day of the fiscal year, a company issues a $500,000, 8%, 10 year bond that pays semi-annual interest of $20,000 ($500,000 ´ 8% ´ 1/2), receiving cash of $530,000. Journalize the entry to record the issuance of the bonds.
161. On the first day of the fiscal year, a company issues a $500,000, 8%, 10 year bond that pays semi-annual interest of $20,000 ($500,000 ´ 8% ´ 1/2), receiving cash of $520,000. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method.
