Summary Accounting for Non-Financial Managers

A snapshot of the summary - Accounting for Non-Financial Managers

• 1 Quiz Quarrel

• Alberta Inc. Has sales of $1,000,000, operating profit of $50,000, interest expense of $12,500, tax expense of $7,500, total equity of $200,000, and total debt of $300,000. Long-term assets had cost $500,000 and had a written-down value of $400,000. Current assets consisted of inventory of $70,000 and account receivable of $30,000. The company's inventory holding period (to the nearest day) is:
  
  

  • 34 days
  • 11 days
  • 26 days
  • 18 days  

  26 days
• Hernandez inc. Manufactures 5 models of picture frames, for a total of 12,000 frames per year. The unit cost to produce a metal frame follows:
  
  

  • Direct Materials:     $4
  • Direct Labour          $5
  • Variable Overhead    1
  • Fixed Overhead (60% unavoidable)     6  
  • Total                                             $16

  
  
  A local company has offered to supply Hernandez the 12,000 metal frames it needs for $10 each.
  
  Calculate the total cost of buying from the local company.
  
  

  • 120,000
  • 72,000
  • 192,000
  • 163,200

  • 163,200
• The assembly department has the following production and cost data for the current month:
  
  

  • Beginning Work in Process Units     0
  • Units Transferred Out     42,150
  • Ending Work in Process  35,700

  
  Materials are entered at the beginning of the process. The ending work in process units is 73% complete as to conversion costs.
  
  Calculate the equivalent units of production for conversion costs. (Round your answer to the closet dollar, and no commas)

  68211
• In June, ABC Company bought a truck at the beginning of the month. Amortization on the truck was calculated to be $529. The expected life of the truck was 4 years, with no residual value and the amortization expense was based on the straight-line model. The cost of the truck was:
  
  (No commas)

  25392
• For Biswell Company, variable costs are 61% of sales and fixed costs are $177,000. Calculate the required sales in dollars that are needed to achieve management's target operating income of $75,900.
  
  (Use the contribution margin approach)  
  
  

  • $453846.15
  • $530169.23
  • $648461.54
  • $194615.38  

  648461.54
• Which one of the following correctly describes job-order costing?
  
  Select one:
  

  • Homogeneous goods are being produced
  • Have distinguishing characteristics
  • Large batches are produced
  • A series of connected manufacturing processes is necessary

  Have distinguishing characteristics
• In the absorption cost approach, the mark-up percentage covers the:
  
  

  • Desired ROI and fixed costs
  • The desired ROI only
  • Desired ROI and selling administrative expenses
  • Selling and administrative expenses only

  Desired ROI and selling administrative expenses
• If a payback period for a project is greater than its expected useful life, the:
  
  

  • The project would only be accepted if the company's cost of capital was low

  
  

  • The project's return will always exceed the company's cost of capital

  
  

  • The project will always be profitable

  
  

  • The entire initial investment will not be recovered  

  The entire initial investment will not be recovered
• What is the present value of $8,000 received in 7 years at 8% interest? (Round answer to 0 decimal places, and COMMAS)

  4,668
• Conan Bardwell will receive $1,000 in 6 years from an investment that returns 12%. How much did he invest?

  507