Strayer ACC556 FINAL EXAM Part 2 Latest 2019 April Question # 00602306 Course Code : ACC556 Subject: Business Due on: 06/18/2019 Posted On: 06/18/2019 08:43 AM Tutorials: 1 Rating: 4.9/5

ACC556 Financial Accounting for Managers

FINAL Exam Part 2

Question 1If
the board of directors authorizes a $100,000 restriction of retained earnings
for a future plant expansion, the effect of this action is to

Question 2 A
revenue generally

Question 3 Holden
Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par
common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock
for par. At year end, the common stock had a market value of $10. On its
December 31, 2014 balance sheet, Holden Packaging would report

Question 4 Assume
the following sales data for a company:

2015 $910,000

2014 $770,000

2013 700,000

If 2013 is
the base year, what is the percentage increase in sales from 2013 to 2014?

Question 5 Which
one of the following items is not necessary in preparing a statement of cash
flows?

Question 6 Which
of the following is not typically a characteristic experienced by a company
during the growth phase of the corporate life cycle?

Question 7 Quincy
Corp. earned controllable margin of $500,000 on sales of $6,400,000. The
division had average operating assets of $5,200,000. The company requires a
return on investment of at least 8%. How much is residual income?

Question 8 The
date on which a cash dividend becomes a binding legal obligation is on the

Question 9 A
manager of a cost center is evaluated mainly on

Question 10
A flexible budget

Question 11
Cochran Corporation, Inc. has the following income statement (in millions):

COCHRAN
CORPORATION, INC.

Income
Statement

For the
Year Ended December 31, 2014

Net
Sales
$240

Cost of
Goods Sold 80

Gross
Profit
160

Operating
Expenses 65

Net
Income $ 95

Using
vertical analysis, what percentage is assigned to net income?

Question 12
The following information pertains to Marsh Company. Assume that all balance
sheet amounts represent average balance figures.

Total
asset
$400,000

Stockholders’
equity—common 200,000

Total
stockholders’ equity 280,000

Sales
revenue
120,000

Net
income
25,000

Number of shares
of common stock
8,000

Common
dividends
9,000

Preferred
dividends
6,000

What is
Marsh’s payout ratio?

Question 13
All of the following statements regarding changes in accounting principles are
true except which of the following?

Question 14
Ratios are used as tools in financial analysis

Question 15
Which of the following income statement figures would probably be the best
indicator of a company’s future performance?

Question 16
Bogey Co. recorded operating data for its Cheap division for the year. Bogey
requires its return to be 10%.

Sales
$ 1,400,000

Controllable
margin
160,000

Total
average assets
4,000,000

Fixed
costs 100,000

What is the
ROI for the year?

Question 17
If there were 60,000 pounds of raw materials on hand on January 1, 120,000
pounds are desired for inventory at January 31, and 410,000 pounds are required
for January production, how many pounds of raw materials should be purchased in
January?

Question 18
A critical factor in budgeting for a service firm is to

Question 19
A master budget consists of

Question 20
A comparison with other companies that provides insight into a company’s
competitive position is most commonly known as which of the following types of
comparisons?

Question 21Which
one of the following is not a benefit of budgeting?

Question 22
The primary purpose of the statement of cash flows is to

Question 23
On the basis of the budget reports,

Question 24
Zoum Corporation had the following transactions during 2014:

1 – Issued
$125,000 of par value common stock for cash.

2 –
Recorded and paid wages expense of $60,000.

3 –
Acquired land by issuing common stock of par value $50,000.

4 –
Declared and paid a cash dividend of $10,000.

5 – Sold a
long-term investment (cost $3,000) for cash of $3,000.

6 –
Recorded cash sales of $400,000.

7 – Bought
inventory for cash of $160,000.

8 –
Acquired an investment in Zynga stock for cash of $21,000.

9 –
Converted bonds payable to common stock in the amount of $500,000.

10 – Repaid
a 6 year note payable in the amount of $220,000.

What is the
net cash provided by operating activities?

Question 25
The single most important output in preparing financial budgets is the