Jordan Corporation reported net income of $20,000 and paid cash dividends of $7,000.
Changes in balanced sheet accounts for the year were as follows:
Based on the above information, what is the amount of net cash provided by
operations?
a. $3,000
b. $11,000
c. $19,000
d. $35,000
Chris Mann will deposit $22,400 into an account today that earns 10% per year
compounded annually. Using the following factors, what is the amount that will be in
the account at the end of the 5 years?
a. $36,075
b. $13,909
c. $27,351
d. $18,681
Pam’s Puppy Parlor is a pet grooming parlor and boutique. Pam sells personalized
puppy blankets at $20 each. Her contribution margin is $5. If Pam has an additional
$100 in blanket sales, how much additional contribution margin will this produce?
a.$5
b.$25
c.$50
d.$100
Which of the following is not a measure that relates to the customer perspective?
a. Market share
b. Product return rate
c. Delivery cycle time
d. Percentage of revenue from new customers
All other things held equal
a.The more frequent the controlling activity, the slower an out-of-control process will
be corrected.
b.The more frequent the controlling activity, the faster an out-of-control process can be
corrected.
c.The more frequent the controlling activity, the more likely employees are to ignore the
control.
d.The more frequent the controlling activity, the less likely employees are to ignore the
control.
The formula for calculating the debt-to-equity ratio is
a. Total liabilities divided by total stockholders’ equity.
b. Total liabilities divided by stockholders’ equity provided by preferred stockholders.
c. Long-term liabilities divided by total stockholders’ equity.
d. Long-term liabilities divided by stockholders’ equity provided by preferred
stockholders.
In an activity-based costing system, which of the following is not a category in which
activities are classified?
a. Unit-level
b. Product-level
c. Industry-level
d. Customer-level
Welcher, Inc. plans to purchase equipment with a cost of $142,500. The company
expects annual cash inflows from the equipment of $30,000. The equipment has an
estimated life of 8 years, no estimated salvage life, and a required rate of return is 6%.
The payback period for the equipment is closest to
a. 1 year.
b. 1.5 years.
c. 5 years.
d. 8 years.
Which of the following does not describe the internal business processes perspective?
a. Focus is on creating products and services that customers desire
b. This perspective is the foundation for improvement in all other areas
c. Focus on delivering products and services in a timely manner
d. Measures assist managers in assessing the efficiency and effectiveness of production
processes
If activity level decreases, what happens to the total variable cost?
a.It decreases.
b.It increases.
c.It remains the same.
d.It depends on how much the activity level increases.
Under both participative budgeting and imposed budgeting, the process is
a. Linear.
b. Iterative.
c. Curvilinear.
d. None of these answer choices are correct.
Because fixed overhead does not vary with changes in the level of activity, some
managers do not see a need to investigate variances relating to fixed costs. However,
that is not the case.
a. How is the fixed overhead spending variance calculated?
b. Discuss items that generally do not affect the fixed overhead variance and those that
might affect the fixed overhead variances.
The market-based price is easily determined by
a. Monitoring similar trades that occur in the marketplace between unrelated parties.
b. The price that the selling division charges other customers.
c. The price that the buying division would have to pay another supplier.
d. All of these answer choices are correct.
M & M has provided the following comparative income statements and supplemental
information:
Required: a. Calculate M & M’s gross margin percentage for 2013. b. Calculate M &
M’s price/earnings ratio for 2013. c. Calculate M & M’s dividend payout ratio for 2013.