Liberty BMAL BMAL 590 ALC 3 ACCOUNTING (2015)

| September 29, 2018

Section 1 Financial
Statements Analysis
1. The
percentage analysis of increases and decreases in individual items in
comparative financial statements is called
2. The
percent of fixed assets to total assets is an example of
3. An
analysis in which all the components of an income statement are expressed as a
percentage of net sales is called
4. Statements
in which all items are expressed only in relative terms (percentages of a
common base) are
5. The
ability of a business to pay its debts as they come due and to earn a
reasonable amount of income is referred to as
6. Which
of the following is NOT an analysis used in assessing solvency?
7. The
ratio computed by dividing current assets by current liabilities is the
8. The
ratio of the sum of cash, receivables, and marketable securities to current
liabilities is called the
10. An
acceleration in the collection of receivables will tend to cause the accounts
receivable turnover to
11. Which
of the following ratios provides a solvency measure that shows the margin of
safety of noteholders or bondholders and also gives an indication of the
potential ability of the business to borrow additional funds on a long-term
12. The
number of times interest charges are earned is computed as
13. The
_____ measures the profitability of total assets, without considering how the
assets are financed.
14. For
most profitable companies, the rate earned on total assets will be less than Which
one of the following is NOT a characteristic generally evaluated in ratio
15. Which
additional report is required of independent auditors
since the passage of the Sarbanes-Oxley Act in 2002?
Section 2 Capital
Investment Analysis
16. Decisions
to install new equipment, replace old equipment, and purchase or construct a
new building are examples of
17. Which
of the following are present value methods of analyzing capital investment
18. By
converting dollars to be received in the future into current dollars, the
present value methods take into consideration that money
19. The
primary advantages of the average rate of return method are its ease of
computation and the fact that
20. Which
of the following can be used to place capital investment proposals involving
different amounts of investment on a comparable basis for purposes of net
present value analysis?
21. An
analysis of a proposal by the net present value method indicated that the
present value exceeded the amount to be invested. Which of the following
statements best describes the results of this analysis?
22. In
general, present value methods of analyzing capital investments are more
desirable than methods ignoring present value because
23. Which
method of evaluating capital investment proposals uses the concept of present
value to compute a rate of return?
24. When
several alternative proposals of the same amount are being considered, the one
with the largest net present value is the most desirable. If the alternative
proposals involve different amounts of investment, it is useful to prepare a
relative ranking of the proposals by using a (n)
25. Which
method of evaluating capital investment proposals uses present value concepts
to compute the rate of return from the net cash flows expected from capital
investment proposals?The present
value index is computed using which of the following formulas?
26. Which
of the following is a present value method of analyzing capital investment
27. An
analysis of a proposal by the net present value method indicated that the present
value of future cash inflows exceeded the amount to be invested. Which of the
following statements best describes the results of this analysis?
28. All
of the following are factors that may complicate capital investment analysis
29. Which
of the following provisions of the Internal Revenue Code can be used to reduce
the amount of the income tax expense arising from the capital investment
30. Periods
in time that experience increasing price levels are known as periods of
31. The
process by which management allocates available investment funds among
competing investment proposals is called

32. In
capital rationing, an initial screening of alternative proposals is usually
performed by establishing minimum standards. Which of the following evaluation
methods are normally used?
33. In
capital rationing, alternative proposals that survive initial and secondary
screening are normally evaluated in terms of nonfinancial factors
3 Basic Accounting Concepts
34. The
basic financial statements do NOT include the tax return
35. Which
of the following is NOT an element of the financial accounting system?
36. Which
of the following accounts is a stockholders’ equity account?
37. The
stockholders’ equity will be reduced by which of the following accounts:
38. The
gross increases in stockholders’ equity attributable to business activities are
39. A
____ is an economic event that under generally accepted accounting principles
affects an element of the financial statements and must be recorded.
40. The
statement of cash flows is integrated with the balance sheet because
41. RST
borrowed $25,000 from the bank. Which of the following accurately shows the
effects of the transaction?
42. Anderson,
Inc. paid rent expense of $4,000 for the month of October. How are the accounts
affected due to this transaction?
43. Anderson,
Inc. receives $5,000 cash for fees earned. What is the effect of this
44. Declaring
and paying cash dividends affects which balance sheet accounts?
45. If
Assets have a balance of $50,000 and Stockholders’ Equity has a balance of
$40,000, then Liabilities must have a balance of
46. A
to Z Corporation engaged in the following transaction “Paid a $10,000 cash
dividend.” On the Statement of Cash Flows, the transaction would be classified
47. The
income statement for August indicates net income of $50,000. The corporation
also paid $10,000 in dividends during the same period. If there were no
beginning balance in stockholders’ equity, what is the ending balance in
stockholders’ equity?
48. The
first month of operation showed the net cash from operating activities to be
$3,760, the net cash from investing activities to be ($5,415), and the ending
cash balance to be $2,425. The net cash from financing activities must be $
Section 4
Sarbanes-Oxley, Internal Control, and Cash
49. The
purpose of the Sarbanes-Oxley Act of 2002 is to
50. The
Sarbanes-Oxley Act of 2002 requires companies and their independent accountants
51. The
objectives of internal control are to
52. A
firm’s internal control environment is influenced by
53. When
a firm uses internal auditors, it is adhering to which of the following
internal control elements?
54. Which
of the following is NOT defined as cash?
55. The
notification accompanying a check that indicates the specific invoice being
paid is called a
56. EFT

57. On
the bank’s accounting records, customers’ accounts are normally shown as
58. Credit
memorandums from the bank
59. A
bank reconciliation should be prepared periodically because
60. The
amount of the outstanding checks is included on the bank reconciliation as a
61. A
special cash fund used to make small payments that occur frequently is called a
62. Cash
equivalents include
63. A
minimum cash balance required by a bank is called
Section 5 Budgeting and
Standard Cost Systems
64. The
budget process involves doing all the following EXCEPT
65. When
department managers plan lower goals than possible in order to build in a
cushion for unexpected events, the result is
66. The
process of developing budget estimates by requiring all levels of management to
estimate sales, production, and other operating data as though operations were
being initiated for the first time is referred to as
67. A
variant of fiscal-year budgeting whereby a twelve-month projection into the
future is maintained at all times is termed
68. The
production budgets are used to prepare which of the following budgets?
69. The
first budget customarily prepared as part of an entity’s master budget is the
70. The
budget that summarizes future plans for the acquisition of fixed assets is the
71. Estimated
cash payments are planned reductions in cash from all of the following EXCEPT
72. Management
accountants usually provide for a minimum cash balance in their cash budgets
for which of the following reasons?
73. Planning
for capital expenditures is necessary for all of the following reasons EXCEPT
74. Standards
that represent levels of operation that can be attained with reasonable effort
are called
75. Periodic
comparisons between planned objectives and actual performance are reported in
76. The
standard price and quantity of direct materials are separated because
77. If
the price paid per unit differs from the standard price per unit for direct
materials, the variance is termed
78. If
the actual direct labor hours spent producing a commodity differ from the
standard hours, the variance is termed
Variances from standard costs are
usually reported to The use of standards for nonmanufacturing expenses is

Get a 30 % discount on an order above $ 100
Use the following coupon code:
Order your essay today and save 30% with the discount code: RESEARCHOrder Now
Positive SSL