1. (TCO 1) Which financial statement is prepared first? Balance sheet Income sta

1. (TCO 1) Which financial statement is prepared first? Balance sheet Income statement Retained earnings statement Statement of cash flows2. (TCO 1) 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 statements3. (TCO 4) Using the following balance sheet and income statement data what is the earnings per share?Current assets $ 7000 Net income $ 12000Current liabilities 4000 Stockholders equity 27000Average assets 40000 Total liabilities 9000Total assets 30000Average common shares outstanding was 10000 (Points : 4) $3.60 $4.00 $1.20 $0.834. (TCO 4) Which measure would a long-term creditor be least interested in reviewing? (Points : 4) free cash flow debt to total assets ratio current ratio solvency measure5. (TCO 2) Which pair of the listed accounts follows the rules of debits and credits in relation to increases and decreases in the same manner? (Points : 4) Salary Expense and Notes Payable Common Stock and Rent Expense Accounts Receivable and Advertising Expense Service Revenue and Equipment6. (TCO 2) The usual sequence of steps in the recording process is which of the following? (Points : 4) analyze each transaction enter the transaction in the journal and transfer the information to the ledger accounts analyze each transaction enter the transaction in the ledger and transfer the information to the journal analyze each transaction enter the transaction in the book of accounts and transfer the information to the journal analyze each transaction enter the transaction in the book of original entry and transfer the information to the journal7. (TCO 3) Joe is a warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates ______________________ . (Points : 4) documentation procedures are violated independent internal verification is violated segregation of duties is violated establishment of responsibility is violated8. (TCO 3) The following information was taken from Mitchell Company cash budget for the month of July:Beginning cash balance $50000Cash receipts 48000Cash disbursements 68000If the company has a policy of maintaining end of the month cash balance of $50000 the amount the company would have to borrow is which of the following $20000 $10000 $30000 $120009. (TCO 11) Managerial accounting does which of the following is concerned with costing products is governed by generally accepted accounting principles pertains to the entity as a whole and is highly aggregated places emphasis on special-purpose information10. (TCO 11) 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 expense11. (TCO 11) Sales commissions are classified as which of the following overhead costs period costs product costs indirect labor12. (TCO 11) Ranger Company reported total manufacturing costs of $65000 manufacturing overhead totaling $13000 and direct materials totaling $16000. How much is direct labor cost $49000 $94000 $29000 $3600013. (TCO 11) Hardigan Manufacturing Company reported the following year-end information:beginning work in process inventory $80000cost of goods manufactured $980000beginning finished goods inventory $50000ending work in process inventory $70000and ending finished goods inventory $40000How much is Hardigan s cost of goods sold for the year? $980000 $990000 $970000 $100000014. (TCO 5) What effect do changes in activity have on fixed costs per unit? (Points : 4) No effect. Fixed costs per unit stay the same at every activity level. An inverse effect. A directly proportional effect. It depends on the particular level of activity.15. (TCO 5) Which one of the following is not an assumption of CVP analysis? (Points : 4) All units produced are sold. Cost classifications are reasonably accurate. Factors other than changes in activity may affect costs. The sales mix remains constant.1. (TCO 5) A company has total fixed costs of $180000 and a contribution margin ratio of 30%. How much sales are necessary to break even $540000 $600000 $54000 $1260002. (TCO 5) How much sales are required to earn a target income of $70000 if total fixed costs are $100000 and the contribution margin ratio is 40%? $400000 $200000 $330000 $425000 3. (TCO 6) For which one of the following budgeting aspects does the budget committee generally have the responsibility? (Points : 4) Setting company goals. Expressing the budget in financial terms. Enforcing the budget. Serves as a review board where managers can defend budget goals and requests.4. (TCO 6) Which one of the following would most likely cause an unrealistic budget to result? (Points : 4) All levels of management contributed to its development. The budget has been developed in a participative approach. The budget has been developed in a top down fashion. The budget was developed after considerable planning.5. (TCO 6) What three differences exist between long-range planning and budgeting? (Points : 4) Amount of detail content and emphasis Time periods involved amount of detail and content Content emphasis and amount of detail Emphasis time periods involved and amount of detail6. (TCO 6) Which one of the following is a source of information used to prepare the budgeted income statement? (Points : 4) Cash budget Budgeted balance sheet Selling and administrative expense budget Capital expenditure budget7. (TCO 7) When is a static budget most appropriate in evaluating a manager s performance? (Points : 4) When actual costs incurred equal the amounts on the budget. When the actual activity level is less than the master budget activity. The static budget is not appropriate for evaluating managers. When the company performed at the same activity level as the static budget level.8. (TCO 7) Which type of center is the toy department in a Wal-Mart store? (Points : 4) An exception center A profit center A cost center An investment center9. (TCO 7) For which of the following is an investment center manager responsible? (Points : 4) Invested assets sales and costs Sales profits and invested assets Sales invested assets and assets Revenues and costs10. (TCO 7) An investment center generated a contribution margin of $200000 controllable fixed costs of $100000 and sales of $1000000. The center s average operating assets were $400000. How much is the return on investment? (Points : 4) 25% 175% 50% 75%11. (TCO 11) A manufacturing company makes the products that it sells. Briefly identify and define the cost elements that are incurred in making a product. After product cost elements are identified how is the cost of goods manufactured for a period determined12. (TCO 4) Are short-term creditors long-term creditors and stockholders primarily interested in the same characteristics of a company? Explain.13. (TCO 5) Keller Company estimates that variable costs will be 60% of sales and fixed costs will total $1920000. The selling price of the product is $10 and 600000 units will be sold.Instructions:(a) Compute the break-even point in units and dollars(b) Compute the margin of safety in dollars and as a ratio