FREE ACCOUNTING AND STUDY GAMES ABOUT D196

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FREE ACCOUNTING AND STUDY GAMES ABOUT D196

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -85 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Selling goods, providing services, selling buildings & land, borrowing money, receive investments

Answer:

Inflows of Cash Receipts

Question 2: Overhead is allocated based on different activity levels

Answer:

Activity Based Costing (ABC)

Question 3: Assets= Liabilities + Owners Equity

Answer:

Accounting Equation

Question 4: A method of costing that assigns costs to specific jobs or products

Answer:

Job-Order Costing

Question 5: Total Estimated Manufacturing Overhead Cost for the year/ Total Estimated Machine Hours for the year

Answer:

Overhead Expenses Question 6: Reports a company's assets, liabilities, & owners equity at a particular date, summary of financial position at a particular date Uses ALE

Answer:

Balance Sheet Question 7: Costs of manufacturing product, direct materials, direct labor & manufacturing overhead

Answer:

Product Costs in a Manufacturing Business Question 8: Forces management to make many important decisions that guide a company toward its goals. Decisions involving scheduling, pricing, borrowing, investing & cost control.All budgets start w/ sales budget

Answer:

Master Budgeting Process for Manufacturing Firm Question 9: Amount of manufacturing overhead that is assigned to the goods produced.

Answer:

Applied Manufacturing Overhead Question 10: The company currently uses a traditional method to allocate overhead. Which type of costing system should the company use instead?

Answer:

Activity-Based Costing (ABC) Question 11: Purpose is to help see how accounting process eventually turns transactions into financial statements & making data into useful info for decision-making by managers.

Answer:

Purpose of Accounting Cycle

Question 12: Future costs that change as a result of a decision; also called incremental or relevant costs

Answer:

Differential Costs

Question 13: Utilities expense, Salaries, Maintenance

Answer:

Expenses

Question 14: Total Fixed Cost/Contribution Margin Ratio

Answer:

Break-Even in Sales Formula

Question 15: Sales Revenue-Variable Cost-Fixed Cost=Profit (Net Income)

Answer:

CVP Formula Question 16: The three general type of overhead cost activities in ABC systems are?

Answer:

Unit-level, batch level, product line Question 17: Method of product costing whereby costs are accumulated by process or work centers & averaged over all products manufactured in a center or department during a production period. Used by process centers.

Answer:

Process Costing Question 18: Estimated Manufacturing Overhead/Estimate of Expected Level of Activity

Answer:

Predetermined Overhead Rate Question 19: Costs incurred outside the production facility Ex: Company headquarters rent cost

Answer:

Period Cost

Question 20: Raw materials>Work in Progress Inventory>Finished goods inventory> Cost of Goods Sold

Answer:

Costs & Products Flow in Manufacturer

Question 21: What info does a balance sheet provide to a decision maker?

Answer:

Summary of the financial position of a company at a particular date Question 22: Organizational unit in which a manager has control over & is responsible for its performance

Answer:

Responsibility Centers

Question 23: Activity Rate * # of Cost of Driver Events

Answer:

Overhead allocated in ABC system

Question 24: Contribution Margin/ Sales (or Price)

Answer:

Contribution Margin Ratio Formula Question 25: Procedure for analyzing, recording, classifying, summarizing, & reporting transactions of a business, prepare reports

Answer:

Accounting Cycle Question 26: Method of financial statement analysis in which each line item is displayed as a percentage of another item to allow for comparison to other companies within the same industry.

Answer:

Vertical Analysis