Principles of Accounting Final Exam
Course Introduction
Principles of Accounting introduces students to the fundamental concepts and techniques used in recording, classifying, and interpreting financial information for business decision-making. The course covers essential topics such as the accounting cycle, preparation of financial statements, double-entry bookkeeping, and the underlying principles governing generally accepted accounting practices. Emphasis is placed on understanding the role of accounting in organizations, ethical considerations, and the use of financial data in planning, controlling, and evaluating business activities. This foundational course prepares students for more advanced studies in accounting and related fields.
Recommended Textbook
Financial Managerial Accounting 16th Edition by Jan Williams
Available Study Resources on Quizplus
28 Chapters
3779 Verified Questions
3779 Flashcards
Source URL: https://quizplus.com/study-set/3940 Page 2
Chapter 1: Accounting: Information for Decision Making
Available Study Resources on Quizplus for this Chatper
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/78574
Sample Questions
Q1) Development of generally accepted accounting principles
(A.) What is meant by the phrase "generally accepted accounting principles"?
(B.) Give the names of three organizations that currently play an active role in the development of accounting principles in the United States.
Answer: (A.) Generally accepted accounting principles provide the framework for determining what information is to be included in the financial statements and how that information is to be presented.
(B.) Financial Accounting Standards Board; Securities and Exchange Commission; American Institute of CPAs; American Accounting Association.
Q2) Characteristics of management accounting information include all of the following except:
A) Is audited by a CPA.
B) It must be timely.
C) It is oriented toward the future.
D) It measures efficiency and effectiveness.
Answer: A
Q3) The timeliness of the information is more critical than its completeness.
Answer: Management
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Basic Financial Statements
Available Study Resources on Quizplus for this Chatper
158 Verified Questions
158 Flashcards
Source URL: https://quizplus.com/quiz/78573
Sample Questions
Q1) If the Cash balance at December 31, 2011 is $67,500, the Notes Payable balance is:
A) $118,750.
B) $47,500.
C) $137,500.
D) $140,000.
Answer: B
Q2) It is not unusual for an entity to report a significant increase in cash from operating activities, but a decrease in the total amount of cash.
A)True
B)False
Answer: True
Q3) If a transaction causes an asset account to decrease, which of the following related effects may occur?
A) An increase of equal amount in an owners' equity account.
B) An increase in a liability account.
C) An increase of equal amount in another asset account.
D) An increase in the combined total of liabilities and owners' equity.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: The Accounting Cycle: Capturing Economic Events
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/78572
Sample Questions
Q1) What is the total owners' equity at the end of June?
A) $60,000.
B) $110,000.
C) $240,000.
D) $600,000
Answer: D
Q2) In a trial balance prepared on January 5, 2009, the total of the credit column is:
A) $275,000.
B) $286,000.
C) $287,000.
D) $297,000.
Answer: A
Q3) Indicate all correct answers. In the accounting cycle:
A) Transactions are posted before they are journalized.
B) A trial balance is prepared after journal entries have been posted.
C) The Retained Earnings account is not shown as an up-to-date figure in the trial balance.
D) Journal entries are posted to appropriate ledger accounts.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Accounting Cycle: Accruals and Deferrals
Available Study Resources on Quizplus for this Chatper
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/78571
Sample Questions
Q1) Accumulated depreciation is:
A) The depreciation expense recorded on an asset to date.
B) The remaining book value of an asset.
C) The depreciation expense taken on an asset during the current period.
D) An expense on the income statement.
Q2) An expenditure that benefits year one but is paid for in year two should not be capitalized until year two.
A)True
B)False
Q3) In which of the following situations would an adjusting entry be made at the end of January to record an accrued expense?
A) Ramona's Nursery purchased playground equipment on January 1 with an estimated useful life of six years.
B) On January 25, Ramona's Nursery hired a college student to drive the minibus; the new employee is to begin work in February.
C) January 31 falls on a Tuesday; salaries are paid on Friday of each week.
D) On January 31, Ramona's Nursery paid the interest owed on a note payable for January.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: The Accounting Cycle: Reporting Financial Results
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/78570
Sample Questions
Q1) Working capital equals current assets divided by current liabilities.
A)True
B)False
Q2) Measures of profitability tell us how quickly current assets can be converted into profits.
A)True
B)False
Q3) Return on equity is a commonly used measure of a company's solvency.
A)True
B)False
Q4) The balance in Income Summary:
A) Should equal retained earnings.
B) Will always be equal to the increase in retained earnings.
C) Will equal net income less dividends.
D) Will equal net income or net loss.
Q5) Which of the following accounts will be closed to Income Summary?
A) Prepaid Expenses.
B) Unearned Revenue.
C) Dividends.
D) Earned Revenue.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Merchandising Activities
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/78569
Sample Questions
Q1) Which of the following appears in the income statement of a merchandising business, but not in the income statement of a business that renders only services?
A) Interest revenue.
B) Gross profit.
C) Advertising expense.
D) Income tax expense.
Q2) Merchandising companies that are small and do not use a perpetual inventory system may elect to use:
A) A physical inventory system.
B) A periodic inventory system.
C) An inventory shrinkage method.
D) An inventory subsidiary ledger system.
Q3) Inventory systems
Briefly distinguish between a perpetual inventory system and a periodic inventory system.
Q4) A large company with many different kinds of low-cost items would tend to use a perpetual inventory system.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Financial Assets
Available Study Resources on Quizplus for this Chatper
233 Verified Questions
233 Flashcards
Source URL: https://quizplus.com/quiz/78568
Sample Questions
Q1) Which of the following activities affects net income, but has no immediate impact upon cash flows?
A) Collection of an account receivable.
B) Making the end-of-period adjustment to record estimated uncollectible accounts.
C) Investing excess cash in marketable securities.
D) Write-off of an uncollectible account receivable against the allowance.
Q2) When the direct write-off method is used to recognize uncollectible accounts expense, an Allowance for Doubtful Accounts is not required.
A)True
B)False
Q3) The income statement approach used to estimate uncollectible receivables uses a percentage of net sales without considering the current balance in the Allowance account.
A)True
B)False
Q4) Cash equivalents are the most liquid of assets.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Inventories and the Cost of Goods Sold
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/78567
Sample Questions
Q1) The lower-of-cost-or-market rule:
A) Is used in conjunction with the other inventory cost flow assumptions.
B) Cannot be used if LIFO or FIFO are also used.
C) Can be used in conjunction with LIFO but not FIFO.
D) Can only be used with the specific identification cost flow assumption.
Q2) Assuming that Beech Soda uses the average cost flow assumption, the cost of goods sold to be recorded at January 14 is (round cost per unit to nearest cent):
A) $317.50.
B) $308.25.
C) $273.33
D) $673.00.
Q3) What were the gross sales for the month?
A) $129,000.
B) $171,000.
C) $300,000.
D) $304,750.
Q4) The higher a company's inventory turnover rate, the higher its gross profit.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Plant and Intangible Assets
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/78566
Sample Questions
Q1) In the fixed-percentage-of-declining-balance depreciation method, the book value of the asset is multiplied by:
A) An increasing depreciation rate.
B) A constant depreciation rate.
C) A decreasing depreciation rate.
D) A rate that changes each year but is determined from a table.
Q2) Goodwill-financial reporting considerations
Cabot Corporation's balance sheet at December 31, 2009, includes an asset entitled goodwill in the amount of $900,000, net of accumulated amortization.
(a) Briefly explain what is meant by the term goodwill.
(b) Under what circumstances is goodwill recorded in the accounting records? Include in your Answer a specific situation in which Cabot would have recorded the goodwill mentioned above.
Q3) Compute the book value of the stallion at May 31, 2009, the date of sale.
$______________
Q4) Compute the gain or loss on the sale of the stallion. $______________ (gain/loss)
Q5) Briefly explain the difference between a revenue expenditure and a capital expenditure.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Liabilities
Available Study Resources on Quizplus for this Chatper
221 Verified Questions
221 Flashcards
Source URL: https://quizplus.com/quiz/78565
Sample Questions
Q1) The portion of the second monthly payment made on January 31, 2010, which represents interest expense is: $________
Q2) Which of the following is an example of a loss contingency that should be disclosed in a footnote to a company's financial statements?
A) The president of the company has threatened to resign if the board of directors does not vote to increase executive salaries.
B) A lawsuit has been brought against the company, but the company hopes to prevail in the suit and thereby avoid any liability.
C) The allowance for uncollectible accounts receivable is estimated at $200,000.
D) The company owns special-purpose machinery which, if sold, would probably bring a price less than its current book value.
Q3) In a long-term capital lease, the lessor views a portion of each lease payment as interest expense.
A)True
B)False
Q4) Payroll-related expenses
Shown below is a summary of the annual payroll data of Revere Ironworks:
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Stockholders Equity: Paid-In Capital
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/78564
Sample Questions
Q1) Refer to the information above. Assuming Juniper Corporation did not issue any more common stock in 2009, how does the increase in value of its outstanding stock affect Juniper?
A) Juniper should recognize additional net income for 2009 of $4 per share, or $240,000. B) Paid-in capital at December 31, 2009, is $720,000 (i.e., 60,000 shares times $12 per share).
C) This increase in market value of outstanding stock is not recorded in the financial statements of Juniper Corporation.
D) Each shareholder must pay an additional $4 per share to Jupiter.
Q2) The purchase of treasury stock creates an asset for the corporation and is recorded at the cost of the shares purchased, not par value. A)True
B)False
Q3) Only preferred stock of a corporation must have a par value. A)True B)False
Q4) The average issue price per share of preferred stock: $_____ per share
Q5) The total amount of legal capital: $__________
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Income and Changes in Retained Earnings
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/78563
Sample Questions
Q1) On January 1, 2010, Edward Corporation had 10,000 shares of $6 par value common stock and 10,000 shares of 8%, $100 par value convertible preferred stock outstanding. The preferred shares carried a 3 for 1 conversion privilege. On October 1, 2010, all of the preferred shares were converted to common. What number of shares must Edward use in computing basic earnings per share at December 31, 2010?
A) 17,500.
B) 40,000.
C) 7,500.
D) 10,000.
Q2) It would be reasonable to assume that:
A) Basic earnings per share should exceed diluted earnings per share.
B) Diluted earnings per share should exceed basic earnings per share.
C) Basic earnings per share should be equal to diluted earnings per share.
D) Basic earnings per share would not be presented with diluted earnings per share.
Q3) Stock splits are always in a 2 for 1 ratio.
A)True
B)False
Q4) What was the average issue price per share of preferred stock?
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/78562
Sample Questions
Q1) Compute the amount of cash received from customers during the current year.
A) $265,000.
B) $255,000.
C) $260,000.
D) $40,000.
Q2) Products that tie in with a company's other products are called complementary products.
A)True
B)False
Q3) Dividends paid belong in the operating section of the statement of cash flows.
A)True
B)False
Q4) Which of the following is a financing activity?
A) Payment of interest.
B) Payment of dividends.
C) Making sales on account.
D) Paying off accounts payable.
Q5) Free cash flow refers to the excess of cash inflows over cash outflows.
A)True
B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/78561
Sample Questions
Q1) The return on average total stockholders' equity during the year (rounded to the nearest 1 percent) was:
A) 50%.
B) 41%.
C) 38%.
D) Some other answer.
Q2) Which of the following usually is least important as a measure of short-term liquidity?
A) Quick ratio.
B) Debt ratio.
C) Current ratio.
D) Cash flow from operating activities.
Q3) The lower the current ratio, the more liquid the company appears.
A)True
B)False
Q4) Eleva Corporation's operating cycle (in days) for 2011 is:
A) 158.8 days.
B) 122.0 days.
C) 213.4 days.
D) 188.0 days.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Global Business and Accounting
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/78560
Sample Questions
Q1) Which of the following is not true regarding the above sales transaction to Music of Mexico?
A) Brown recognizes a loss on fluctuation of foreign currency in the amount of $4.65 in 2011.
B) Brown recognizes a gain on fluctuation of foreign currency in the amount of $4.80 in 2012.
C) Brown has incurred an overall loss of $1.60 on fluctuation of foreign currency in the period from December 10, 2011 to February 8, 2012.
D) Brown could have avoided any loss due to fluctuations in foreign currency by setting the sales price of the cassettes in terms of U.S. dollars instead of pesos.
Q2) On November 1, a French company purchased machinery from an American company for 800,000 euros when the exchange rate was $0.83. When preparing financial statements on December 31, assuming the rate for Euros was $0.88, what amount of gain or loss should the American company report?
A) $40,000 gain.
B) $40,000 loss.
C) $19,000 gain.
D) No gain or loss would be reported.
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Management Accounting: a Business Partner
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/78559
Sample Questions
Q1) The cost of goods sold in September is:
A) $190,000.
B) $158,000.
C) $168,000.
D) Some other amount.
Q2) Supervisor salaries, equipment repairs, depreciation of machinery, and indirect materials are all examples of manufacturing overhead.
A)True
B)False
Q3) Direct labor costs are debited and is credited when the direct labor employees contribute to the production process.
A)True
B)False
Q4) The placing of direct materials into the production process is recorded by an entry debiting:
A) Materials Expense.
B) Raw Materials Inventory.
C) Work in Process Inventory.
D) Finished Goods Inventory.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Job Order Cost Systems and Overhead
Allocations
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/78558
Sample Questions
Q1) A job cost sheet will include:
A) All raw materials purchased.
B) Actual overhead.
C) Direct labor applied to production.
D) Selling costs.
Q2) A credit balance in the manufacturing overhead account at month end indicates that the actual overhead costs were less than the amount of overhead costs applied to jobs.
A)True
B)False
Q3) The account Work-in-Process Inventory:
A) Consists of completed goods that have not yet been sold.
B) Consists of goods being manufactured that are incomplete.
C) Consists of materials to be used in the production process.
D) Consists of the cost of new materials used, labor but not overhead.
Q4) If the manufacturing overhead account at month end has a credit balance before adjustment, this indicates that overhead is under-applied.
A)True
B)False
19
Q5) What is the finished goods inventory at November 30? $___________
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Process Costing
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/78557
Sample Questions
Q1) Refer to information above. If direct labor and overhead costs totaled $172,000, what would be the unit cost?
A) $1.23.
B) $1.08.
C) $1.56.
D) $3.44.
Q2) United Construction Company, which manufactures residential buildings, would most likely use a process costing system.
A)True
B)False
Q3) On the basis of this information only:
A) The number of units transferred in May from Department Q to the next process or department was 34,000.
B) There were more units in Department Q's ending inventory than in Department Q's beginning inventory for May.
C) Department Q completed 48,000 units of product during May.
D) Department Q used enough materials during May to produce 48,000 completed units.
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Costing and the Value Chain
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/78556
Sample Questions
Q1) Identifying value-added activities
Pomme Farms operates an apple cider press. The production of cider involves the following activities:
(1.) Inspect incoming shipments of apples.
(2.) Store apples in adjacent barn until needed.
(3.) Transport apples from storage barn to the press building.
(4.) Load apples onto the conveyor leading to the press.
(5.) Run press.
(6.) Fill bottles with completed cider.
(7.) Dispose of waste from press.
(8.) Store filled bottles until sale.
Requirements:
(a.) Identify Pomme's value-added activities.
(b.) Identify any non-value added activities performed by Pomme.
Q2) As a percentage of total costs, which quality cost category is the highest?
A) Prevention.
B) Internal failure.
C) Appraisal.
D) External failure.
Q3) Resourceful's total cycle time is __________ days.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/78555
Sample Questions
Q1) The cost formula for Ratnere's monthly overhead cost can be expressed as:
A) $2.65 average cost per unit.
B) $1.75 average cost per unit.
C) $24,000 fixed cost plus $1.00 per unit.
D) $72,000 fixed cost + $2.00 per unit.
Q2) A semi-variable cost:
A) Increases and decreases directly and proportionately with changes in volume.
B) Changes in response to a change in volume, but not proportionately.
C) Increases if volume increases, but remains constant if volume decreases.
D) Changes inversely in response to a change in volume.
Q3) The break-even point is the level of activity at which operating income is equal to cost of goods sold.
A)True
B)False
Q4) One characteristic common to all types of costs is the tendency to rise and fall in direct proportion to changes in the volume of business output.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 22
Chapter 21: Incremental Analysis
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/78554
Sample Questions
Q1) Sunk costs may be defined as unavoidable future costs resulting from past decisions.
A)True
B)False
Q2) Sunk costs are relevant to decisions about replacing plant assets.
A)True
B)False
Q3) Seeking creative solutions to problems
Explain why it would be irresponsible and short-sighted for managers to base decisions entirely on revenue and cost figures.
Q4) Which factor is not relevant in deciding whether or not to accept a special order?
A) Incremental revenue that will be earned.
B) Additional costs that will be incurred.
C) The effect that the order will have on the company's regular sales volume and selling prices.
D) The average cost of production if the special order is accepted.
Q5) Incremental analysis rarely requires the decision maker to exercise judgment.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Responsibility Accounting and Transfer Pricing
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/78553
Sample Questions
Q1) In deciding how the store will benefit most from increasing the sales of selected departments, the store manager should be most interested in the:
A) Total sales of each department.
B) Contribution margin ratios of each department.
C) Fixed costs traceable to each department.
D) Responsibility margins of each department.
Q2) All costs become traceable at some level of the organization.
A)True
B)False
Q3) Disneyland charges visitors for admission to the park but not for individual rides or attractions. "Splash Mountain" is one of the rides in Disneyland. The Walt Disney Company should evaluate "Splash Mountain" as:
A) A revenue center.
B) A cost center.
C) An investment center.
D) A profit center (other than an investment center).
Q4) Profit centers generate revenues and expenses.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Operational Budgeting
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/78552
Sample Questions
Q1) When budgeted amounts are set at reasonable and achievable levels:
A) They reflect a "total quality management" philosophy of management.
B) A highly efficient department should fall slightly short of budget standards.
C) Meeting the budgeted amounts ensures a maximum level of profitability.
D) Failure to stay within the budget is viewed as an unacceptable level of performance.
Q2) A master budget actually includes a number of related budgets.
A)True B)False
Q3) The cost-volume relationship used to prepare the flexible budget for this department includes:
A) Manufacturing overhead cost of $1.00 per unit.
B) Fixed cost of $0.83 per unit.
C) Total cost of $2.98 per unit.
D) Variable costs of $2.15 per unit.
Q4) Under the "total quality management" philosophy, budgeted amounts should be set at realistic and achievable levels rather than at levels representing absolute efficiency.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Standard Cost Systems
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/78551
Sample Questions
Q1) In most companies using standard cost procedures, the costs charged to Work-in-Process, Finished Goods, and Cost of Goods Sold are the actual costs, not the standard costs.
A)True
B)False
Q2) There will be a favorable materials price variance if:
A) The standard price per unit is less than the actual price per unit.
B) The standard price per unit is greater than the actual price per unit.
C) The actual quantity purchased is greater than expected.
D) The actual quantity purchased is less than expected.
Q3) A favorable overhead spending variance means that:
A) Overhead has been overapplied.
B) Overhead has been underapplied.
C) Actual production was less than the normal volume of output.
D) None of the above.
Q4) With respect to labor costs, Roman's production manager is responsible for:
A) Any labor rate variance as well as any labor efficiency variance.
B) Only a labor rate variance.
C) Only a labor efficiency variance.
D) Only unfavorable labor variances.
Page 26
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Rewarding Business Performance
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/78550
Sample Questions
Q1) Criticisms of return on investment as the only performance measure include:
A) ROI focuses on short-term decisions.
B) ROI is focused on only one component of the value chain.
C) Managers evaluated based only on ROI are sometimes motivated not to make an investment that is in the best interest of the organization as a whole.
D) All of the above.
Q2) Dwyer Company's ROI is 6% and its return on sales is 16%. What is its capital turnover?
A) 3%.
B) 37.5%.
C) 300%.
D) Some other percentage.
Q3) Calculate and explain residual income and economic value added.
Q4) Which of the following is not a strategy of the learning and growth lens of a balanced scorecard?
A) Improve employee relations.
B) Improve customer relations.
C) Improve employee productivity.
D) Increase new product development.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Capital Budgeting
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/78549
Sample Questions
Q1) What is the net present value of the cutting machine discounted at an annual rate of 20%, if the present value of a ten-year $1 annuity discounted at 20% is 4.192?
$_____________
Q2) The payback period for this investment is:
A) 8 years.
B) 4 years.
C) Over 13 years.
D) 2.5 years.
Q3) The return on average investment for this investment is approximately:
A) 10%.
B) 20%.
C) 31%.
D) 50%.
Q4) The payback period considers total profitability over the life of an investment and takes into consideration the timing of an investment's future cash flows.
A)True
B)False
Q5) Annual net cash flow: $_____________
Q6) Return on average investment: _____________%
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 28: Forms of Business Organization
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/78575
Sample Questions
Q1) In a limited liability partnership, a partner has unlimited liability for his own actions and limited liability for the actions of his partners.
A)True
B)False
Q2) Sally Smythe enters into a partnership by contributing the following: Cash $15,000; Accounts Receivable $4,500; Machinery which cost $3,000 and has a fair market value of $2,125; and accounts payable of $1,200. What amount will be recorded in her capital account?
A) $21,625.
B) $20,425.
C) $22,500.
D) $21,300.
Q3) In a sole proprietorship the balance in the Income Summary account is closed to: A) Retained earnings.
B) Capital.
C) Drawing.
D) Net Income.
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 27: The Time Value of Money: Future Amounts and
Present Values Answer Key
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/78576
Sample Questions
Q1) The present value of a single amount is calculated by multiplying the future amount by the present value of $1 table.
A)True
B)False
Q2) Annuities may provide equal amounts to an investor at fixed periods of time over the life of an investment.
A)True
B)False
Q3) Financial instruments are recorded at:
A) Future values.
B) Present values plus interest.
C) Present values less interest.
D) Present values.
Q4) The future amount of an annuity is calculated by multiplying the present value of the annuity by its applicable factor from a table.
A)True
B)False
Q5) Explain what is meant by the "time value of money." Provide examples.
Q6) Explain how compound interest applies to the time value of money.
To view all questions and flashcards with answers, click on the resource link above. Page 30