Accounting and Finance Key Concepts Review

Posted on Feb 11, 2025 in Economy

Accounting and Finance Key Concepts

  1. Sole Proprietorship
  2. 110,000
  3. The individual assets invested by a partner in a partnership are jointly owned by all partners.
  4. Which of the following is not a characteristic of a partnership? Double taxation
  5. 49,200
  6. Which of the following statements is correct? The balance sheet of a partnership will show two or more capital accounts.
  7. Number of shares issued are 60,000.
  8. Vickers Company issues 4,000 shares of $5 par value common stock for $140,000. Paid-in Capital in Excess of Par will be credited for $120,000.
  9. 702,000
  10. (Debit) Cash 8,800 (Credit) Common Stock 8,800
  11. Preferred Stock for $500,000 and Paid-in Capital in Excess of Par – Preferred Stock for $400,000
  12. $450
  13. $58,000
  14. The statement of cash flows summarizes the operating, financing, and investing activities of an entity.
  15. The acquisition of land by issuing common stock is a noncash transaction and would not be reported in the body of the statement of cash flows.
  16. Indicate where the event common stock issued for cash would appear, if at all, on the indirect statement of cash flows: Financing activities section
  17. Inflow in the investing section
  18. Which of the following changes will be reported in the financing activities section of the statement of cash flows? 1
  19. Prior period adjustments are reported in the statement of retained earnings.
  20. Manufacturing costs include DM, DL, and MOH.
  21. Which one of the following represents a period cost? VP of sales
  22. The product cost that is most difficult to associate with a product is MOH.
  23. The inventory accounts that show the cost of completed goods on hand and the cost applicable to production that is partially completed are, respectively, finished goods inventory and work in process.
  24. 480,000
  25. 804,000
  26. The two basic types of cost accounting systems are job order and process cost systems.
  27. It is a form used to record the costs chargeable to a specific job to determine the total and unit costs of the completed job.
  28. 1950
  29. If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is underapplied.
  30. Requires an adjustment to cost of goods sold.
  31. Remains constant, decreases.
  32. A mixed cost contains a variable element and a fixed element.
  33. Contribution margin equals sales revenue minus variable costs.
  34. 30,000
  35. The amount by which actual or expected sales exceed break-even sales is referred to as target net income.
  36. Incremental analysis would be appropriate for all of these.
  37. The order will likely be rejected.
  38. The company should buy if the cost of buying is lower.
  39. Sales budget
  40. Is the potential benefit that may be obtained.
  41. Is processed further as long as the incremental revenue from such processing exceeds the incremental processing costs.
  42. Why are budgets useful in the planning process? They guarantee the company will be profitable if it meets its objectives.
  43. One year
  44. Long-range planning has a longer period of time.
  45. Cash budget and the budgeted balance sheet.
  46. 144,000
  47. Expected cash receipts and cash disbursements from all sources.
  48. The static budget is prepared for a single level of activity.
  49. Fixed manufacturing overhead.
  50. A budget expresses a total amount, while a standard expresses a unit amount.