ACC 560: Comprehensive Financial Accounting and Management Control System Final Exam

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ACC 560: Comprehensive Financial Accounting and Management ControlSystem Final ExamACC 560 FINAL EXAM1) According to the Financial Executives Institute, one function of controllership is _____.A.short term financingB. reporting and interpreting financial informationC.investmentsD.provision of capital2) Performance reports _____.A. provide feedback by comparing results with plans and by highlighting deviations from plansB.ignore areas that are presumed to be running smoothlyC.are quantitative expressions of action plansD.are deviations from a plan3) Budgets _____.A.provide feedback by comparing results with plans and by highlighting deviations from plansB.ignore areas that are presumed to be running smoothlyC. are quantitative expressions of action plansD.are deviations from a plan4) Ethical accountants are important to society because _____.A. the information produced is reliableB.none of these answers is correctC.they pay their taxesD.they will not go to prison and waste taxpayers’ money5) According to the Institute of Management Accountants’ Statement of Ethical ProfessionalPractice, the standard of competence includes:A.avoiding actual or apparent conflicts of interestB.All of these answers are correctC. the ongoing development of the accountant’s knowledge and skillsD.disclosing all relevant information6) According to the Institute of Management Accountants’ Statement of Ethical ProfessionalPractice, the standard of objectivity includes _____.A.all of these answers are correctB.disclosing all relevant informationC.avoiding actual or apparent conflicts of interestD. the ongoing development of the accountant’s knowledge and skills7) Which scorecard function is associated with making non-routine decisions?A. None of these answers is correctB. Problem solving is associated with making non-routine decisions.C.Attention directing is associated with making non-routine decisions.D.Scorekeeping is associated with making non-routine decisions.8) _____ is the field of accounting that develops information for external decision makers suchas stockholders, suppliers, banks, and government regulatory agencies.A. Financial accounting

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B.Management accountingC.Tax accountingD.Auditing9) Launching a new product line is an example of _____.A.organizationB.controllingC.planningD. decision making10) The _____ is also called the statement of financial position.A.statement of cash flowsB.statement of retained earningsC. balance sheetD.income statement11) The accrual basis of accounting recognizes the impact of transactions on the financialstatements in the period when _____.A.the accounting equation is decreasedB.the transaction occursC.cash is received or disbursedD. revenues are earned and expenses are incurred12) The _____ is not one of the three major financial statements.A. statement of equity positionB.balance sheetC.income statementD.statement of cash flows13) The use of acquisition cost less depreciation in valuing an asset on the balance sheet is thelogical result of the _____ accounting convention.A.materialityB. cost-benefitC.conservatismD. continuity14) The accounting convention of _____ guides the relative sophistication of the accountingsystem.A materialityB.conservatismC. cost benefitD.objectivity15) The accounting convention of _____ means selecting the method of measurement that yieldsthe gloomiest immediate results.A. conservatismB.materialityC.objectivityD.cost benefit16) The statement of cash flows is used for all of the following except_____.A.evaluating the creditworthiness of the organizationB. revealing commitments that may restrict future courses of action

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C.determining a company’s ability to pay its debts when they are dueD.showing the relationship of net income to changes in cash17) The difference between a single and multiple step income statement is that a single stepincome statement_____.A.shows only one year’s net income, whereas a multiple step income statement shows multipleyears’ net incomeB.calculates gross profit and operating income, whereas a multiple step income statement doesnotC.calculates net income using one method, whereas a multiple step income statement calculatesnet income under two or more methodsD. groups all revenues together and all expenses together, whereas a multiple step incomestatement separates certain revenues and expenses from each other and presents subtotals18) Sylvester Company requires clients to pay in advance for legal services. One such clientmade a $4,000 payment on May 1, and Sylvester Company recorded this transaction in theappropriate liability account. As of May 20, the legal services that the client requested had beencompleted. The May 20 accounting entry will:A. decrease liabilities and increase revenuesB.increase revenues and increase liabilitiesC.decrease assets and decrease liabilitiesD.decrease assets and increase revenues19) Output measures of both resources and activities are _____.A.variable activitiesB.fixed activitiesC.stages of productionD. cost drivers20) Which of the following is not a cost driver of customer services costs?A. Travel costs are not a cost driver of customer services costs.B. All of these answers are correctC.Number of service calls is not a cost driver of customer services costs.D.Hours spent servicing products are not a cost driver of customer services costs.21) Which value chain function would include the cost of computer-aided design equipment andcost to develop the prototype of a product?A. The design of product, services, and processes function would include these costs.B.The marketing function would include these costsC.The production function would include these costs.D. The distribution function would include these costs.22) Walnut Corporation sells desks at $480 per desk. The costs associated with each desk are asfollows:Direct materials $195Direct labor 126Variable factory overhead 51Total fixed costs for the period are $456,840. The contribution margin per desk is _____.A. $108B.$126C.$51D.$195

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