1.A time interest earned ratio of 0.90 to 1 means:
A. The time the firm will default on its interest payment.
B. That net income is less than the interest expense.
C. That the cash flow is less than the net income
D. That the cash floe exceed the net income
E. None of the answer are correct.
2. Statements in which all items are expressed only in relativeterms (percentages on base) are termed;
A. Vertical Statement
B. Horizontal statement
C. Funds Statements
D. Common-sized statements
E. None of the answer are correct
3. A manufacturing firm would begin preparation of its masterbudget by constructing a:
A. Sales budget
B. Product budget
C. Cash Budget
D. Capital Budget
E. Set of pro-forma financial statements.
4. For a company that uses responsibility center accounting,which of the following costs is least likely to appear on aperformance report of an assembly-line supervisor.
A. Direct material used
B. Departmental Supplies
C. Assembly-line labor
D. Repairs and maintenance
E. Assembly-line facilities depreciation
5. which of the folling methods ignores the fact thar someservice department provide service to other service department;
a. Direct Method
B. Indirect method
C. Step down method
D. Reciprocal method
E. Dual cost allocation method
6.A division's return on investment may be improved byincreasing:
A. Cost of goods sold
B. Sales margin and cost of capital
C. Sales revenue and cost of capital
D. Capital turnover or sale margin
E. Capital turnover or cost of capital
7.Which of the following ratios would generally be used toevaluate a firms overall liquidity position
A. Working Capital
B. Current Ratio
C. Acid test ratio
D. Cash ratio
E. Inventory turnover in days.
8.Flexiable budgets reflect a comapny's anticipated costs basedon variations in;
A. Activity levels
B. Inflation rates
C. managers
D. anticipated capital acquistions
E. standards
9.When the quantity of material purchased is not equal to thequantity of material used, most companies base the calculation ofthe material quantity variance on the :
A. quantity of direct material purchased
B. Quantity of direct material spoiled
C. quantity of direct material that should have been used inacheiving actual production
D quantity of direct material actual used.
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10. Which of the following costs should be ignored choosingamong alternatives?
A. Opportunity costs
B. Sunk costs
C. Out of pocket costs
D. Differential costs
E. None of these.
11. Which of the foll should have the strongest casue and effectrelationship with overhead cost;
A. Cost followers
B. Non value added cost
C. Cost drivers
D. Value added cost
E. Unit of output
12. Equivalent unit calculation are necessary to allocatemanaufacturing cost between:
A. Units completed and ending work in process
B.Beginning work in process and units completed
C. Unit sold and eding work in process
D. Cost of goods manufactured and beginnining work inprocess
E. Cost of goods manufactured and cost of goods sold.
