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The retained earnings statement shows

23/10/2021 Client: muhammad11 Deadline: 2 Day

1. The Retained Earnings Statement Shows All Of The Following Except Which One?

1. The retained earnings statement shows all of the following except which one?

The amounts of changes in retained earnings during the period

The causes of changes in retained earnings during the period

The time period following the one shown for the income statement

Beginning retained earnings on the first line of the statement

2. The information needed to determine whether a company is using accounting methods similar to those of its competitors, would be found in which of the following?

auditor’s report

balance sheet

management discussion and analysis section

notes to the financial statements

3. Using the following balance sheet and income statement data, what is the earnings per share?

Current assets $ 9,000 Net income $ 12,000

Current liabilities 4,000 Stockholders’ equity 27,000

Average assets 44,000 Total liabilities 6,000

Total assets 30,000

Average common shares outstanding was 10,000

$1.20

$2.00

$0.83

$0.44

4. Which of the following is not considered a measure of liquidity?

Current ratio

Working capital

Debt to total assets ratio

Each of the above are liquidity measures

5. Which pair of accounts follows the rules of debit and credit, in relation to increases and decreases, in the same manner?

Accounts Payable and Rent Expense

Repair Expense and Notes Payable

Prepaid Insurance and Advertising Expense

Service Revenues and Equipment

6. Which of the following is not part of the recording process?

Analyzing transactions

Preparing a trial balance

Entering transactions in a journal

Posting journal entries

7. Joe is a warehouse custodian, and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates ______________________ .

documentation procedures are violated

independent internal verification is violated

segregation of duties is violated

establishment of responsibility is violated

8. The following information was taken from Niland Company cash budget for the month of April:

Beginning cash balance $30,000

Cash receipts 27,000

Cash disbursements 34,000

If the company has a policy of maintaining end of the month cash balance of $25,000, the amount the company would have to borrow is which of the following?

$29,000

$5,000

$2,000

$0

9. Managerial accounting information does which of the following?

pertains to the entity as a whole and is highly aggregated

must be prepared according to generally accepted accounting principles

pertains to subunits of the entity and may be very detailed

is prepared only once a year

10. A manufacturing process requires small amounts of glue. The glue used in the production process is classified as which of the following?

period cost

indirect material

direct material

miscellaneous expense

11. Which of the following are period costs?

Raw materials

Direct materials and direct labor

Direct labor and manufacturing overhead

Selling expenses

12. Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totaling $13,000, and direct materials totaling $16,000. How much is direct labor cost?

$49,000

$94,000

$29,000

$36,000

13. Hardigan Manufacturing Company reported the following year-end information:

beginning work in process inventory, $80,000

cost of goods manufactured, $980,000

beginning finished goods inventory, $50,000

ending work in process inventory, $70,000

and ending finished goods inventory, $40,000

How much is Hardigan’s cost of goods sold for the year?

$980,000

$990,000

$970,000

$1,000,000

14. Which statement describes a fixed cost?

It varies in total at every level of activity.

The amount per unit varies depending on the activity level.

Its total varies proportionally to the level of activity.

It remains the same per unit regardless of activity level.

15. Which one of the following is not an assumption of CVP analysis?

All units produced are sold.

Cost classifications are reasonably accurate.

Factors other than changes in activity may affect costs.

The sales mix remains constant.

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