QUESTION: 1 .On which financial statement would you see the valuation of a company's asset
accounts?
a.Statement of Cash Flows
b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - ANSWER-B
QUESTION: 2. What is the final step in the accounting cycle?
a.Summarize the effects of transactions
b.Analyze transactions
c.Prepare reports
d.Record the effects of transactions - ANSWER-c
QUESTION: 3. Which of the following is not an example of a transaction?
a.Receive cash in payment of an invoice
b.Purchase an asset from a supplier
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c.Sale on credit to a customer
d. Preparing financial statements - ANSWER-d
4. Which budget should include all production costs other than those for direct materials and
direct labor?
A.Sales budget
B.Direct materials budget
C.Manufacturing overhead budget
D. Production budget - ANSWER-c
QUESTION: 5. Which account is a common asset account?
A.Accounts payables
B.Equity
C.Accounts receivable
D. Utilities Expense - ANSWER-c
QUESTION: 6. On which financial statement would you see cash flows from financing activities?
a.Statement of Cash Flows
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b.Balance Sheet
c.Income Statement
d.Statement of Retained Earnings - ANSWER-d
QUESTION: 7. Whose job is it to make sure that investors are provided with full and fair
information about publicly traded companies?
FASB
AICPA
IASB
SEC - ANSWER-d
QUESTION: 8. How does a classified balance sheet provide useful information to a decision
maker?
a.It distinguishes between current and long-term assets
b.It provides data that are not publicly disclosed
c.It distinguishes liabilities from expenses
D. It provides data for a period of time instead of as a point in time - ANSWER-a
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QUESTION: 9. In some companies, the performance measures for profit center managers are
heavily influenced by cost allocations downward from organizational units (such as company
headquarters). Why is this a mistake?
a.Controllable costs should not be included in the performance evaluation measure of a profit
center manager
b.Revenues should not be included in the performance evaluation measure of a profit center
manager
c.Uncontrollable costs should not be included in the performance evaluation measure of a
profit center manager
d. Direct costs should not be included in the performance evaluation measure of a profit center
manager - ANSWER-c
QUESTION: 10. Which is an example of a product cost?
a.Non-manufacturing personnel costs
b.Rent Expense
c.Office Supplies
d. Raw materials to make a product - ANSWER-d
QUESTION: 11. Which label is given to the cost of wages for factory supervisors?
a. Direct labor
b.Direct materials
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