Acct 202 AE – Q #4 (B) May 28, 2015
Name: _______SOLUTIONS__________________ Managerial Accounting Quiz #4
Multiple Choice (2 points each)
•“GAAP” stands for:
•
•Generally Authorized Auditing Principles
•Government Authorized Accounting Procedures
•Generally Accepted Accounting Principles
•Generally Applied Auditing Procedures
•
•Every decision involves a choice from among at least two alternatives. A cost that
differs between alternatives is known as
•
•Sunk cost
•Relevant cost
•Opportunity cost
•Changing cost
•
•Who are the two primary groups of financial resource providers for a company?
•
•Investors and creditors
•Accountants and CPA’s
•Suppliers and vendors
•Lenders and suppliers
•
•Which of the following statements about Period Costs is TRUE?
•
•Period costs are usually recorded as assets.
•Most period costs are expensed in the period in which the costs are incurred.
•Period costs are expensed when the products associated with these costs are sold.
•Operating expenses are not period costs
•
•What type of accounting information is intended to satisfy the needs of external
users?
•
•Financial Accounting
•Managerial Accounting
•Tax Accounting
•Cost Accounting
•
•A deferral transaction is defined as a transaction in which
•
•A revenue or expense is recognized before cash is collected or paid.
•A revenue or expense is recognized after cash is collected or paid.
•A revenue or expense is recognized at the time the cash is collected or paid.
•Revenue is recognized when the cash is collected and an expense is recognized
after the cash is paid.
•
•The recording rules of double-entry accounting related to assets, liabilities, and
stockholders’ equity accounts can be summarized as
•
•Debits increase asset accounts; credits increase liability and equity accounts.
•Debits decrease asset accounts; credits increase liability and equity accounts.
•Debits increase asset accounts; credits decrease liability and equity accounts.
•Debits decrease asset accounts; credits decrease liability and equity accounts.
•
•Which of the following is not considered an operating asset for purposes of
calculating return on investment?
•
•Cash
•Common Stock
•Inventory
•Property & Equipment
•
•Which of the following is not one of the three major customer value propositions
discussed in the text?
•
•zero defects
•customer intimacy
•operational excellence
•product leadership
•
•On the Schedule of Cost of Goods Manufactured, the final Cost of Goods
Manufactured figure represents:
•
•the amount of cost charged to Work in Process during the period.
•the amount of cost transferred from Finished Goods to Cost of Goods Sold during
the period.
•the amount of costs placed into production during the year.
•the amount of cost of goods completed during the current year whether they were
