1) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
Income Statement Balance Sheet
Dr. Cr. Dr. Cr.
Totals $58,000 $48,000 $34,000 $44,000
Closing entries are necessary for __________.
A. temporary accounts only
B. permanent accounts only
C. permanent or real accounts only
D. both permanent and temporary accounts
2) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A. General corporate liability insurance
B. Factory janitor
C. The western division’s vice president’s salary
D. Cost of landscaping the corporate office
3) Which list below best describes the major services performed by public accountants?
A. Employee training, auditing, bookkeeping
B. Bookkeeping, mergers, budgets
C. Cost accounting, production scheduling, recruiting
D. Auditing, taxation, management consulting
4) The conceptual framework developed by the Financial Accounting Standards Board __________.
A. are rules that all accountants must follow
B. was approved by a vote of all accountants
C. is legally binding on all accountants
D. is viewed as providing a constitution for setting accounting standards for financial reporting
Read more: http://www.investopedia.com/terms/f/fasb.asp
5) In what situations will a static budget be most effective in evaluating a manager's effectiveness?
A. The company has substantial variable costs.
B. The company has substantial fixed costs.
C. The company has no fixed costs.
D. The planned activity levels match actual activity levels.
6) Which one of the following items is not generally used in preparing a statement of cash flows?
A. Comparative balance sheets
B. Adjusted trial balance
C. Additional information
D. Current income statement
7) These are selected account balances on December 31, 2008.
Land (location of the corporation’s office building) $150,000
Land (held for future use) 225,000
Corporate Office Building 900,000
Office Furniture 150,000
Accumulated Depreciation 450,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
8) A well-designed activity-based costing system starts with __________.
A. analyzing the activities performed to manufacture a product
B. computing the activity-based overhead rate
C. assigning manufacturing overhead costs for each activity cost pool to products
D. identifying the activity-cost pools
9) The cost principle is the basis for preparing financial statements because it is __________.
A. the most accurate measure of purchasing power
B. relevant and objectively measured, and verifiable
C. an international accounting standard
D. a conservative value
10) Which one of the following is a product cost?
A. Advertising costs
B. Office salaries
C. Sales person’s salaries
D. Indirect labor