Correlation Part 1
Quiz by Robert
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- Q1
The cost of inventory that is still on hand is called:
cost of goods sold, and expense that appears on the balance sheet
inventory, a long-term asset that appears on the balance sheet.
inventory, a current asset that appears on the balance sheet.
purchases, a current asset that appears on the balance sheet.
30s - Q2
Another term for gross profit is:
gross operating income
gross sales
gross margin
gross income.
30s - Q3
Two accounts that appear on the financial statements of a merchandising company but are not needed bya service company are:
cost of goods sold and net income
inventory and depreciation
cost of goods sold and depreciation
cost of goods sold and inventory
30s - Q4
Sales revenue is based on the_________ of the inventory, while cost of goods sold is based on the___________ of the inventory.
cost; fair market value
sale price; retail price
cost; sale price
sale price; cost
30s - Q5
Which is the CORRECT order of items to appear on the income statement?
sales revenue, cost of goods sold, gross profit, operating expenses
sales revenue, gross profit, net income, operating expenses
sales revenue, operating expenses, gross profit, net income
sales revenue, gross profit, cost of goods sold, operating expenses
30s - Q6
A periodic inventory system:
All of the above
is not expensive to maintain.
does not keep a running record of inventory on hand.
is used for inexpensive goods
30s - Q7
The inventory system that uses computer software to keep a running record of the inventory on hand is the:
hybrid inventory system
periodic inventory system
perpetual inventory system
cost of goods sold inventory system
30s - Q8
Which of the following statements about management accounting is FALSE?
Management accounting is used by managerial accountants to make strategic and operationaldecisions
Management accounting helps managers fulfill organizational objectives
Management accounting is the process of identifying, measuring, accumulating, analyzing,preparing,interpreting and communicating information
Management accounting produces information for managers in an organization
30s - Q9
An unfavorable variance occurs on a performance report when ___________________.
the actual cost is less than the budgeted cost
the actual revenue is greater than the budgeted revenue
the actual profit is greater than the budgeted profit
the actual revenue is less than the budgeted revenue
30s - Q10
An favorable variance occurs on a performance report when ______________.
the actual revenue is greater than the budgeted revenue
the actual revenue is less than the budgeted revenue
the actual cost is less than the budgeted cost
the actual profit is greater than the budgeted profit
30s - Q11
Who is the primary user of performance reports used to plan and control operations?
CPAs
chartered accountants
operating managers
management accountants
30s - Q12
The Helium Company held a Christmas party. The company expected attendance of 100 people and prepared the following budget: What is the primary reason for the variance in total costs?
Hotel room rent cost more than expected
Entertainment cost more than expected
Food cost more than expected
Decorations cost more than expected
30s - Q13
Which of the following statements, regarding the rules of debits and credits, is CORRECT?
A liability is increased by a debit
Revenue is increased by a credit
An asset is increased by a credit
Dividends are decreased by debits
30s - Q14
The first step in recording a transaction in the journal is
copying the information from the journal to the ledger.
determining whether each account is increased or decreased by the transaction.
specifying each account affected by the transaction and classifying the account by type.
entering the debit side of the journal entry on the left margin and the credit side, which is indented to the right.
30s - Q15
The normal balance of an account:
falls on the side where increases are recorded.
falls on the side where decreases are recorded
cannot be computed in a manual accounting system
must be computed after every transaction
30s
