Solved by verified expert :6) A
liquidity ratio measures the
short-term
ability of a company to pay its maturing obligations and to meet unexpected
needs for cash.
ability
of a company to survive over a long period of time.
income
or operating success of a company over a period of time.
percentage
of total financing provided by creditors.
9) Horizontal analysis is a technique for
evaluating a series of financial statement data over a period of time
that
has been arranged from the highest number to the lowest number.
that
has been arranged from the lowest number to the highest number.
to
determine which items are in error.
to
determine the amount and/or percentage increase or decrease that has taken
place
10 Vertical analysis is a technique that
expresses each item in a financial statement
starting
with the highest value down to the lowest value.
as a
percent of a base amount.
as a
percent of the item in the previous year.
in
dollars and cent
11)Process costing is used when
the
production process is continuous.
costs
are to be assigned to specific jobs.
dissimilar
products are involved.
production
is aimed at filling a specific customer order.
13)In a process cost system, product costs are
summarized:
on
job cost sheets.
on
production cost reports.
after
each unit is produced.
when
the products are sold.
15) Activity-based
costing
assigns
activity cost pools to products and services, then allocates overhead back to
the activity cost pools.
allocates
overhead directly to products and services based on activity levels.
allocates
overhead to multiple activity cost pools, and it then assigns the activity
cost pools to products and services by means of cost drivers.
accumulates
overhead in one cost pool, then assigns the overhead to products and services
by means of a cost driver.
17) The
break-even point is where
contribution
margin equals total fixed costs.
total
sales equal total variable costs.
total
variable costs equal total fixed costs.
total
sales equal total fixed costs.
19) When a
company assigns the costs of direct materials, direct labor, and both variable
and fixed manufacturing overhead to products, that company is using
operations
costing.
product
costing.
absorption
costing.
variable
costing.
4) An income statement
reports
the assets, liabilities, and stockholders’ equity at a specific date.
summarizes
the changes in retained earnings for a specific period of time.
presents
the revenues and expenses for a specific period of time.
reports
the changes in assets, liabilities, and stockholders’ equity over a period of
time.
If a division manager’s compensation is based
upon the division’s net income, the manager may decide to meet the net income
targets by increasing production when using
variable
costing, in order to increase net income.
variable
costing, in order to decrease net income.
absorption
costing, in order to decrease net income.
absorption
costing, in order to increase net income.
21)An unrealistic budget is more likely to result
when it
has been developed in a bottom up fashion.
has been developed by all levels of management.
is developed with performance appraisal usages
in mind.
has been developed in a top down fashion.
23)The purpose of the sales budget report is to
control
sales commissions.
determine
whether income objectives are being met.
control
selling expenses.
determine
whether sales goals are being met.
25)Variance reports are
(a)
external financial reports.
(b)
SEC financial reports.
(c)
internal reports for management.
(d)
all of thes
27 The process of evaluating financial data that
change under alternative courses of action is called
double
entry analysis.
incremental
analysis.
contribution
margin analysis.
cost-benefit
analysis.
