ACC 560 Week 2 Quiz – Strayer NEW

 

Week 2 Quiz 1: Chapter 1

 

TRUE-FALSE STATEMENTS

    1.     Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

 

Ans:, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Communication, IMA: Reporting

 

    2.     Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Communication, IMA: Reporting

 

    3.     Managerial accounting applies to all forms of business organizations.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Communication, IMA: Reporting

 

    4.     Determining the unit cost of manufacturing a product is an output of financial accounting.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA

 

    5.     Managerial accounting internal reports are prepared more frequently than are classified financial statements.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Communication, IMA: Reporting

 

    6.     The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

 

Ans:, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Decision Modeling, AICPA PC: Leadership, IMA: Decision Analysis

 

    7.     The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.

 

Ans:, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: Ethics, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

    8.     Controlling is the process of determining whether planned goals are being met.

 

Ans:, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Decision Modeling, AICPA PC: Leadership, IMA: Internal Controls

 

    9.     Decision-making is an integral part of the planning, directing, and controlling functions.

 

Ans:, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision Modeling, AICPA PC: Leadership, IMA: Decision Analysis

 

  10.     Direct materials costs and indirect materials costs are manufacturing overhead.

 

Ans:, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  11.     Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

 

Ans:, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  12.     Raw materials are equal to direct materials minus indirect materials.

 

Ans:, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  13.     Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.

 

Ans:, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  14.     The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.

 

Ans:, LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  15.     Both direct labor cost and indirect labor cost are product costs.

 

Ans:, LO: 4, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  16.     Period costs include selling and administrative expenses.

 

Ans:, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  17.     Indirect materials and indirect labor are both inventoriable costs.

 

Ans:, LO: 4, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  18.     Direct materials and direct labor are the only product costs.

 

Ans:, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

 

  19.     Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

 

Ans:, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  20.     Period costs are not inventoriable costs.

 

Ans:, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  21.     Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

 

Ans:, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  22.     The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of a manufacturing company.

 

Ans:, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  23.     In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

 

Ans:, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  24.     Finished goods inventory does not appear on a cost of goods manufactured schedule.

 

Ans:, LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  25.     If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

 

Ans:, LO: 6, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Cost Management

 

  26.     Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a merchandising company.

 

Ans:, LO: 7, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  27.     Raw materials inventory shows the cost of completed goods available for sale to customers.

 

Ans:, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  28.     The balanced scorecard approach attempts to maintain as little inventory on hand as possible.

 

Ans:, LO: 8, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Risk Analysis, AICPA PC: Problem Solving, IMA: Performance Measurement

 

  29.     The supply chain is all the activities associated with providing a product or service.

 

Ans:, LO: 8, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: None, IMA: Global Business

 

  30.     Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods.

 

Ans:, LO: 8, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Risk Analysis, AICPA PC: None, IMA: Cost Management

 

  31.     Managerial accounting is primarily concerned with managers and external users.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Decision Modeling, AICPA PC: None, IMA: Business Economics

 

  32.     Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.

 

Ans:, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Decision Modeling, AICPA PC: None, IMA: Business Economics

 

  33.     When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

 

Ans:, LO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: None, IMA: Cost Management

 

  34.     Product costs are also called inventoriable costs.

 

Ans:, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: None, IMA: Cost Management

 

  35.     Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

 

Ans:, LO: 5, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Measurement, AICPA PC: None, IMA: Cost Management

 

  36.     The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.

 

Ans:, LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  37.     In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

 

Ans:, LO: 7, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

 

MULTIPLE CHOICE QUESTIONS

  38.     Managerial accounting applies to each of the following types of businesses except

a.   service firms.

b.   merchandising firms.

c.   manufacturing firms.

d.   Managerial accounting applies to all types of firms.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  39.     Managerial accounting information is generally prepared for

a.   stockholders.

b.   creditors.

c.   managers.

d.   regulatory agencies.

 

Ans:, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

 

  40.     Managerial accounting information

a.   pertains to the entity as a whole and is highly aggregated.

b.   pertains to subunits of the entity and may be very detailed.

c.   is prepared only once a year.

d.   is constrained by the requirements of generally accepted accounting principles.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  41.     The major reporting standard for presenting managerial accounting information is

a.   relevance.

b.   generally accepted accounting principles.

c.   the cost principle.

d.   the current tax law.

 

Ans:, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  42.     Managerial accounting is also called

a.   management accounting.

b.   controlling.

c.   analytical accounting.

d.   inside reporting.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  43.     Which of the following is not an internal user?

a.   Creditor

b.   Department manager

c.   Controller

d.   Treasurer

 

Ans:, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Professional Demeanor, IMA: Business Economics

 

  44.     Managerial accounting does not encompass

a.   calculating product cost.

b.   calculating earnings per share.

c.   determining cost behavior.

d.   profit planning.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Professional Demeanor, IMA: Business Economics

 

  45.     Managerial accounting is applicable to

a.   service entities.

b.   manufacturing entities.

c.   not-for-profit entities.

d.   all of these.

 

Ans:, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: Professional Demeanor, IMA: Business Economics

 

  46.     Management accountants would not

a.   assist in budget planning.

b.   prepare reports primarily for external users.

c.   determine cost behavior.

d.   be concerned with the impact of cost and volume on profits.

 

Ans:, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

 

  47.     Internal reports must be communicated

a.   daily.

b.   monthly.

c.   annually.

d.   as needed.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  48.     Financial statements for external users can be described as

a.   user-specific.

b.   general-purpose.

c.   special-purpose.

d.   managerial reports.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  49.     Managerial accounting reports can be described as

a.   general-purpose.

b.   macro-reports.

c.   special-purpose.

d.   classified financial statements.

 

Ans:, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

 

  50.     The reporting standard for external financial reports is

a.   industry-specific.

b.   company-specific.

c.   generally accepted accounting principles.

d.   department-specific.

 

 

  • Item #: ACC560W2Q

ACC 560 Week 2 Quiz – Strayer NEW

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