St. Leo ACC / 300 Intermediate Accounting acct 331 midterm

•Question 1 

Which of the following IS a characteristic of financial accounting?

Answer

Correct Answer:    

must follow GAAP

• Question 2 

The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:

• Question 3 

Dorra Corporation manufactures lawnmowers in five work stations. Dorra's weekly demand is 5,000 mowers but Dorra can only produce 4,200. According to the theory of constraints, to increase production output Dorra would benefit the most by concentrating improvement efforts on the:

• Question 4 

The Institute of Management Accountants' Statement of Ethical Professional Practice states that when faced with significant ethical issues, management accountants should first:

• Question 5 

The controller occupies:

• Question 6 

Decentralization refers to:

• Question 7 

Consider the following costs incurred in a recent period:  

What was the total amount of the period costs listed above for the period?

• Question 8 

Filson Inc., a company that produces and sells a single product, has provided its contribution format income statement for February. 

Sales (9,500 units) $769,000

Variable expenses 522,500

Contribution margin 247,000

Fixed expenses 174,000

Net operating income $ 72,500

If the company sells 9,700 units, its total contribution margin should be closest to:

• Question 9 

If a company increases advertising by $500,000, this will cause net operating income to increase if the resulting increase in sales dollars is greater than:

• Question 10 

An example of a cost that is variable with respect to the number of units produced and sold is:

• Question 11 

On a cost-volume-profit graph, the break-even point is located:

• Question 12 

If company A has a higher degree of operating leverage than company B, then:

• Question 13 

Forest Corporation has prepared the following budgeted data based on a sales forecast of $3,000,000:  

What would be the amount of dollar sales at the break-even point?

• Question 14 

Which of the following is an assumption that is NOT made in most cost-volume-profit calculations?

• Question 15 

Thiel Inc. is working on its cash budget for October. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $166,000 and budgeted cash disbursements total $162,000. The desired ending cash balance is $50,000. The excess (deficiency) of cash available over disbursements for October will be:

• Question 16 

The materials purchase budget:

• Question 17 

Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month?

• Question 18 

Brummitt Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $7.50 per direct labor-hour. The production budget calls for producing 9,100 units in May and 8,800 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?

• Question 19 

The budget or schedule that provides necessary input data for the direct labor budget is the:

• Question 20 

Modesto Company produces and sells Product AlphaB. To guard against stockouts, the company requires that 20% of the next month's sales be on hand at the end of each month. Budgeted sales of Product AlphaB over the next four months are:  

Budgeted production for August would be: