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Question(s) / Instruction(s):

ACC 561 Final Exams 


17 questions and ANSWERS 


1) Management by exception _____. A. is the quantitative expression of action plans B. provides feedback by comparing results with plans and by highlighting deviations from plans C. is a summary report of plan results D. focuses on areas that are presumed to be running smoothly

3) Department performance reports can be used to help department heads determine _____. A. how effectively the department is operating B. how efficiently the department is operating C. how effectively and efficiently the department is operating D. who is primarily responsible for any deviations from plans

5) Which of the following is not a major factor causing changes in management accounting today? A. Declining work ethic is not a major factor. B. Increased global competition is not a major factor. C. E-commerce is not a major factor. D. Increasing importance of the service sector of the economy is not a major factor.

6) 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. competence B. confidentiality C. integrity D. objectivity

7) _____ is (are) the accounting system's effect on the decision of managers. A. Simplicity B. Behavioral implications C. The cost-benefit balance D. Computerization

 8) Which scorecard function is associated with making non-routine decisions? A. Scorekeeping is associated with making non-routine decisions. B. Attention directing is associated with making non-routine decisions. C. Problem solving is associated with making non-routine decisions. D. None of these answers is correct

9) _____ refers to accounting information developed for managers within an organization. A. Internal auditing B. Managerial accounting C. Financial accounting D. Tax accounting

10) The _____ is also called the statement of financial position. A. income statement B. balance sheet C. statement of retained earnings D. statement of cash flows

11) The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when _____. A. revenues are earned and expenses are incurred B. cash is received or disbursed C. the transaction occurs D. the accounting equation is decreased

12) Etiwanda Company’s accountant recorded a debit to Accounts Payable and a credit to Cash. This transaction will_____. A. increase Cash and decrease Accounts Payable B. decrease Cash and increase Accounts Payable C. increase Cash and increase Accounts Payable D. decrease Cash and decrease Accounts Payable

13) Mr. Bryant invested $50,000 cash in a new corporation. The new corporation will record this transaction with a debit to_____. A. Retained Earnings and a credit to Cash for $50,000 B. Cash and a credit to Retained Income for $50,000 C. Paid-in Capital and a credit to Retained Earnings for $50,000 D. Cash and a credit to Paid-in Capital for $50,000

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. continuity B. conservatism C. cost-benefit D. materiality

15) The accounting convention of _____ permits a company to immediately expense assets (such as a garbage can) with small values and long useful lives. A. objectivity B. continuity C. materiality D. conservatism

16) Limited liability means that_____. A. the creditors of the corporation have claims on only the assets of the corporation and not the assets of the owners of the corporation B. the creditors of a corporation can receive only up to, and no more than, the amount due to them C. the company is required to pay only current liabilities in the current year and has no obligation to pay long term liabilities in the current year D. corporations can have liabilities up to only a certain amount due to limits on the company's borrowing capability

17) The Rebecca Company acquired merchandise inventory costing $10,000 on September 1. The company will not pay for the inventory until October 1. This transaction will affect the Rebecca Company by increasing the Merchandise Inventory account by $10,000 and _____. A. increasing the Accounts Payable account by $10,000 B. decreasing the Accounts Payable account by $10,000 C. increasing the Capital account by $10,000 D. decreasing the Capital account by $10,000  

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