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ACCT-3309-001 Flashcards | StudBud
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ACCT-3309-001
ACCT-3309-001
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These questions came from the quizzes. Use to study for Exam 1. Quiz 1-3
Flashcards
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Questions
30
Answers
1
What is a leverage position?
How much control you have over a company
the control over your suppliers
How much control outside stockholders have over your company
degree to which a firm locks into fixed costs
2
Why does Cost Accounting collect cost information?
Monthly reporting
To prepare financial statements
So suppliers get paid
use that information for making decisions
3
Which of the following indicates the capital structure of a firm?
Earnings per share
Debt-to-equity ratio
Cost of debt
4
Accounting is not vital to the development of human civilization
True
False
5
Workload refers to the volume of goods or services the organization will provide
True
False
6
As shown on the course schedule, the Group Project will be introduced during __________.
the week of 5/30
Last day of class
the week of 5/23
never
7
What does a strategic plan define?
specific action items
broad set of goals for the organization
the CEO's mission
narrow objectives for departments
8
One characteristic of an asset is:
it provides no economic value
you can't physically handle it
you can't sell it
it provides expected future benefits
9
What is the first step in budget preparation?
defining debits and credits
completion of an environmental statement
creating budget accounts
setting revenue targets
10
Fundamental Demand For Accounting is___________
to get you a pizza
to help guide exchange
to get more money
to help you count debits and credits
11
Accounting is ___________
an evolved economic institution
just a series of rules
an eleven letter word
a way to get a decent job
12
More than half of CEO compensation is now comprised of _____________
perquisites
stock options
cash bonuses
cash salary
13
Retained earnings represent an asset to the firm.
False
True
14
Fixed costs are those that do not change with changes in the volume of production
False
True
15
Cost and expense are distinct in their underlying meaning
False
True
16
Recordkeeping promotes trust and reduces the risk of loss from exchanging with strangers
False
True
17
A business plan should help you assess whether the proposed venture is sensible
True
False
18
Contribution Margin represents the amount of money available to be used to pay direct labor costs
False
True
19
Historically, most costs of production have consisted of direct materials and indirect labor
False
True
20
We use managing accounting information to evaluate management performance
False
True
21
Cost allocation is the process by which we allocate a share of our overhead costs to each product unit
True
False
22
A bill of materials contains_____
part numbers
components
product id
allocation of indirect labor
23
A bill of lading is a document issued by a(n) __________.
customer
supplier
underwriter
carrier
24
Operating leverage is concerned w/ the extent that a company commits to interest payments over high levels of fixed cost
False
True
25
For what fundamental purpose do we keep records?
To practice writing things down
So suppliers can assess creditworthiness
To help make business decisions
To prepare information for disclosure to the Board of directors
26
A diff. between a personal & a business budget is only a personal budget will help U stay on track with long-range goals
False
True
27
When you have fixed cost, sales price, and variable cost, how do you break even?
Sales price / (Fixed costs - Variable cost)
Variable costs / (Sales price - Fixed costs)
Fixed costs / (Variable costs - Sales Price)
Fixed costs / (Sales price - Variable costs)
28
Which of the following is a benefit of debt relative to equity?
Debt covenants limit opportunities
Debt increases default risk
Lower cost of capital
29
Which of the following documents is a primary source of ACCT data(assets, liabilities, equity, revenues, expenses)?
Dividend schedule
Business plan
Lease agreement
Shareholder agreement
30
What is marketing?
collected knowledge/best practices for evaluating the financial performance
collected knowledge and best practices of creating relationships
a way to obtain capital
a way to sell you cheap products
