1) The Bedford Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $30,000 of the current year’s current assets.
Average inventory for the current year is $36,250.
Average net accounts receivable for the current year is $45,000.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were $17,000.
The market price per share of common stock is $20.
What is the dividend yield for the current year?
A) 59.29%
B) 54.06%
C) 37.49%
D) 2.43%
2) The Hummel Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $28,000 of the current year’s current assets.
Average inventory for the current year is $12,000.
Average net accounts receivable for the current year is $32,000.
There are 40,000 shares of common stock outstanding.
Total dividends paid during the current year were $60,000.
The market price per share of common stock is $25.
What is the company’s days’ sales in receivables for the current year?
A) 42.00 days
B) 1.20 days
C) 25.00 days
D) 14.60 days
3) The managerial accountant at the Toy Factory presented the following information at
a meeting:
What type of statement did the managerial accountant present at the meeting?
A) Balance sheet
B) Statement of cash flows
C) Horizontal analysis
D) Common-size statement
4) The Hummel Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $28,000 of the current year’s current assets.
Average inventory for the current year is $12,000.
Average net accounts receivable for the current year is $32,000.
There are 40,000 shares of common stock outstanding.
Total dividends paid during the current year were $60,000.
The market price per share of common stock is $25.
What is the company’s current ratio for the current year?
A) 1.27
B) 2.55
C) 0.79
D) 0.35
5) The Nichols Corporation data for the current year:
What would a horizontal analysis report with respect to net sales revenue?
A) There is a sales return of $10.23.
B) There was an increase of 18.00% in net sales revenue.
C) The cost of goods sold is 77.29% of net sales revenue.
D) There is an accounts receivable turnover of 11.26 times.
6) The individuals at the International Fireplace Shoppe perform the following duties:
Identify individual E and individual F at International Fireplace Shoppe.
A) CEO; CFO
B) Treasurer; Controller
C) Management Accountant; Financial Accountant
D) Secretary; Receptionist
E) Internal Audit Function; Audit Committee
7) The Hummel Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $28,000 of the current year’s current assets.
Average inventory for the current year is $12,000.
Average net accounts receivable for the current year is $32,000.
There are 40,000 shares of common stock outstanding.
Total dividends paid during the current year were $60,000.
The market price per share of common stock is $25.
What is the company’s accounts receivable turnover for the current year?
A) 0.04 times
B) 42.00 times
C) 14.60 times
D) 25.00 times
8) The Suit Emporium carries brand name business attire. Each suit sells for the set
price of $99.99. The variable cost per suit is $61.24 and the contribution margin is
$38.75. The fixed expenses at Suit Emporium are $16,600. A new business apparel
outlet has opened fifteen miles from the emporium’s location and sales have decreased
because local completion offers consumers similar products at lower price per unit. As a
result of this decrease, the management at Suit Emporium is considering reducing the
sales price per unit to attract the consumer base back to the emporium. The forecasted
price per unit is $79.99.
1.What is the unit contribution margin using the forecasted sales price?
2.What is the new breakeven point in units?
A) $18.75; 886 units
B) $28.50; 1,022 units
C) $22.25; 560 units
D) $15.65; 730 units
9) The manager of the accounting department that may be evaluated on his or her
ability to control expenses at Adidas may be in charge of a(n)
A) investment center.
B) cost center.
C) profit center.
D) revenue center.
10) The Hummel Corporation reported the following income statement and balance
sheet amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $28,000 of the current year’s current assets.
Average inventory for the current year is $12,000.
Average net accounts receivable for the current year is $32,000.
There are 40,000 shares of common stock outstanding.
Total dividends paid during the current year were $60,000.
The market price per share of common stock is $25.
What is the company’s rate of return on common stockholder’s equity for the current
year?
A) 32.00%
B) 42.11%
C) 6.00%
D) 30.77%
11) The managerial accountant at Print Manufacturing reported a grand opening at the
new facility in Virginia. According to the reports, the direct material costs reported in
the new operation are $1,750,000 and there are $1,900,000 total conversion costs. The
managerial accountant also reported that there were 600,000 parts started in the
operations in December and 500,000 parts completed during the month of December.
The ending Work In Process Inventory was 30% complete as to the conversion work.
Calculate (a) the equivalent units for direct materials and conversion costs; (b) calculate
the cost per equivalent unit; and, (c) assign the total costs to units completed and
transferred out and ending Work In Process Inventory.
12) Steeplechase Building Specialties manufactures metal stud to accommodate
commercial framing contractors in the United States. The managerial accountant
reported to the operations manager that there is an order to manufacture 2,000 bundles
of metal stud during the month. The managerial accountant reported the following
information:
Determine the cost equation for the managerial accountant and predict the operating
costs at a volume of 2,000 bundles of metal stud at Steeplechase Building Specialties.
A) $120
B) $220
C) $340
D) $440,120
13) The ________ tells managers how much of the overall variance id due to paying a
higher or lower price than expected for the quantity of materials it purchased.
A) production volume variance
B) overhead flexible budget variance
C) price variance
D) quantity variance
14) Ferrero Company reported the following information for the current year:
With respect to current year net sales revenue, what would a vertical analysis report?
A) COGS would be 15.00% of net sales revenue
B) A dividend yield of $8.20
C) A decrease of 10% in net sales revenue
D) Net sales revenue would be the base amount
15) Tasty Treats is a snow cone stand near the local park. To plan for the future, it wants
to determine its cost behavior patterns. It has the following information available about
its operating costs and the number of snow cones served.
Using the high-low method, the monthly operating costs€if Sunny sells 8,000 snow
cones in a month€are
A) $7,100.
B) $5,600.
C) $10,920.
D) $1,500.
16) The managerial accountant at the Bookcase Factory prefers regression analysis to
the high-low method because it is a more accurate method. The managerial accountant
uses regression output and analyzes the following data to predict future costs:
y =$250x + $625
where,
y = total monthly utility cost
x = number of guests
What is the intercept coefficient, or the vertical intercept of the fixed cost line, in the
equation listed above?
A) y
B) $250x
C) $625
D) $250x + $625
17) A company uses the indirect method to prepare the statement of cash flows. It
presents the following data on its financial statements:
*Relates solely to the acquisition of inventory
What will appear in the operating activities section related to inventory?
A) The decrease of $21,000 will be subtracted from net income.
B) The decrease of $21,000 will be subtracted from cost of goods sold.
C) The decrease of $21,000 will be added to net income.
D) The decrease of $21,000 will be added to cost of goods sold.
18) The direct materials price variance is calculated as
A) the difference in Actual Quantities (AQ) multiplied by the Actual Price (AP) of the
input.
B) the Actual Quantity (AQP) of direct materials divided by the Actual Quantity (AQ).
C) the difference in prices of the Actual Quantity Purchased (AQP) and the Actual Price
(AP) multiplied by the Actual Quantity Purchased (AQP) and the Standard Price (SP) of
the input purchased.
D) the direct materials Actual Quantity Purchased (AQ) divided by the per unit price.