ACC 561 FINAL EXAM TEST 2
1) Budgets _____.
A. ignore areas that are presumed to be running smoothly
B. are deviations from a plan
C. are quantitative expressions of action plans
D. provide feedback by comparing results with plans and by highlighting deviations from plans
2) Performance reports _____.
A. ignore areas that are presumed to be running smoothly
B. provide feedback by comparing results with plans and by highlighting deviations from plans
C. are deviations from a plan
D. are quantitative expressions of action plans
3) Department performance reports can be used to help department heads determine _____.
A. who is primarily responsible for any deviations from plans
B. how efficiently the department is operating
C. how effectively and efficiently the department is operating
D. how effectively the department is operating
4) Below is a statement from the Institute of Management Accountants' Statement of Ethical Professional Practice. “Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so.” It is an example of _____.
A. objectivity
B. confidentiality
C. integrity
D. competence
5) Ethical accountants are important to society because _____.
A. none of these answers is correct
B. they pay their taxes
C. the information produced is reliable
D. they will not go to prison and waste taxpayers' money
6) According to the Institute of Management Accountants' Statement of Ethical Professional Practice, the standard of competence includes:
A. All of these answers are correct
B. the ongoing development of the accountant's knowledge and skills
C. avoiding actual or apparent conflicts of interest
D. disclosing all relevant information
7) _____ is the field of accounting that develops information for external decision makers such as stockholders, suppliers, banks, and government regulatory agencies.
A. Financial accounting
B. Auditing
C. Tax accounting
D. Management accounting
8) _____ refers to accounting information developed for managers within an organization.
A. Tax accounting
B. Internal auditing
C. Managerial accounting
D. Financial accounting
9) The primary users of management accounting information are _____.
A. suppliers
B. bankers
C. governmental regulatory authorities
D. internal decision makers
10) _____ would not appear on the financial statements for a sole proprietorship.
A. Unearned Sales Revenues
B. Paid-in Capital
C. Cost of Goods Sold
D. Accumulated Depreciation
11) The _____ is also called the statement of financial position.
A. statement of cash flows
B. income statement
C. balance sheet
D. statement of retained earnings
12) Etiwanda Company's accountant recorded a debit to Accounts Payable and a credit to Cash. This transaction will_____.
A. decrease Cash and decrease Accounts Payable
B. increase Cash and increase Accounts Payable
C. increase Cash and decrease Accounts Payable
D. decrease Cash and increase Accounts Payable
13) Valuing assets at replacement cost to facilitate the measurement of “economic income” violates the _____ accounting convention.
A. cost benefit
B. conservatism
C. materiality
D. objectivity
14) The use of acquisition cost less depreciation in valuing an asset on the balance sheet is the logical result of the _____ accounting convention.
A. materiality
B. cost-benefit
C. continuity
D. conservatism
15) Mr. Bryant invested $50,000 cash in a new corporation. The new corporation will record this transaction with a debit to_____.
A. Cash and a credit to Paid-in Capital for $50,000
B. Paid-in Capital and a credit to Retained Earnings for $50,000
C. Retained Earnings and a credit to Cash for $50,000
D. Cash and a credit to Retained Income for $50,000
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