Accounting for managers 20 multiple choice questions - Squid Essays

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Accounting for managers 20 multiple choice questions

Question 1 of 205.0 Points

Using a base year as 100% and expressing other years as a percentage of the base year is an example of:

A. trend analysis.

B. vertical analysis.

C. horizontal analysis.

D. benchmarking.

Question 2 of 20 5.0 Points

A company reported the following amounts of net income:

Year 1	$15,000
Year 2	$21,000
Year 3	$31,500

Which of the following is the percentage change from Year 2 to Year 3?

A. 40.00%

B. 50.00%

C. 110.00%

D. 150.00%

Question 3 of 205.0 Points

Environmental sustainability is the primary concern of which of the following types of organizations?

A. Large domestic corporations

B. Global service firms

C. Manufacturing firms

D. All organizations regardless of size, location, or sector

Question 4 of 20 5.0 Points

A company uses the indirect method to prepare the statement of cash flows. It presents the following amounts on its financial statements.

	End of this year	End of prior year
Accounts receivable	$105,000	$100,000
Cost of goods sold	550,000
Sales revenue	850,000
Accounts payable*	75,000	65,000
Inventory	85,000	106,000
Salary payable	15,000	11,000
Salary expense	50,000	42,000

*Relates solely to the acquisition of inventory.

What will appear in the operating activities section related to inventory?

A. The decrease of $21,000 will be subtracted from net income.

B. The decrease of $21,000 will be subtracted from cost of goods sold.

C. The decrease of $21,000 will be added to net income.

D. The decrease of $21,000 will be added to cost of goods sold.

Question 5 of 205.0 Points

The following information relates to Woolf Unlimited for the past two years.

Account	Current year	Prior year
Net sales (all credit)	$237,250	$180,000
Cost of goods sold	$115,000	$110,000
Gross profit	$122,250	$ 70,000
Income from operations	$ 32,000	$ 30,000
Interest expense	$ 2,000	$ 7,000
Net income	$ 24,000	$ 18,000
Cash	$ 22,000	$ 14,000
Accounts receivable, net	$ 25,000	$ 31,000
Inventory	$ 56,000	$ 44,000
Prepaid expenses	$ 2,000	$ 1,000
Total current assets	$105,000	$ 90,000
Total long-term assets	$150,000	$175,000
Total current liabilities	$ 60,000	$ 90,000
Total long-term liabilities	$ 22,000	$ 78,000
Common stock, no par, 2,500 shares, market value $96 per share	$ 40,000	$ 40,000
Retained earnings	$133,000	$ 57,000

What is the inventory turnover for the current year?

A. 2.30 times

B. 0.78 times

C. 13.00 times

D. 2.20 times

Question 6 of 205.0 Points

The following information relates to Woolf Unlimited for the past two years.

Account	Current year	Prior year
Net sales (all credit)	$237,250	$180,000
Cost of goods sold	$115,000	$110,000
Gross profit	$122,250	$ 70,000
Income from operations	$ 32,000	$ 30,000
Interest expense	$ 2,000	$ 7,000
Net income	$ 24,000	$ 18,000
Cash	$ 22,000	$ 14,000
Accounts receivable, net	$ 25,000	$ 31,000
Inventory	$ 56,000	$ 44,000
Prepaid expenses	$ 2,000	$ 1,000
Total current assets	$105,000	$ 90,000
Total long-term assets	$150,000	$175,000
Total current liabilities	$ 60,000	$ 90,000
Total long-term liabilities	$ 22,000	$ 78,000
Common stock, no par, 2,500 shares, market value $96 per share	$ 40,000	$ 40,000
Retained earnings	$133,000	$ 57,000

What is the acid-test ratio for the current year?

A. 0.52

B. 0.75

C. 0.78

D. 2.30

Question 7 of 20 5.0 Points

A payment of interest on a loan would be considered a:

A. cash outflow from investing activities.

B. cash outflow from operating activities.

C. cash outflow from financing activities.

D. cash outflow from depreciation.

Question 8 of 20 5.0 Points

The following data relate to Sorrentino Corporation for last year:

Operating income	$250,000
Net increase in all current assets except cash	$45,000
Net decrease in current liabilities	$30,000
Gain on sale of investments	$8,000
Cash dividends paid on common stock	$35,000
Depreciation expense	$10,000

What is the net cash provided by operating activities for last year on the statement of cash flows for Sorrentino Corporation?

A. $130,000

B. $142,000

C. $173,000

D. $177,000

Question 9 of 20 5.0 Points

The study of percentage changes in comparative financial statements is an example of:

A. vertical analysis.

B. trend analysis.

C. benchmarking.

D. horizontal analysis.

Question 10 of 20 5.0 Points

The Nichols Corporation data for the current year:

Account	Current year	Prior year
Current assets	$75,600	$60,000
A/R	$59,400	$44,000
Mdse. Inventory	$51,200	$40,000
Current liabilities	$71,500	$55,000
Long-term liabilities	$36,000	$30,000
Common stock (5,000 shares)	$47,460	$42,000
Retained earnings	$31,240	$17,000
Net sales revenue	$607,700	$515,000
COGS	$469,700	$385,000
Gross Profit	$138,000	$130,000
Selling/General expenses	$49,080	$52,000
Net income before taxes	$88,920	$78,000
Income tax expense	$20,520	$18,000
Net Income	$68,400	$60,000

What would a horizontal analysis report with respect to long-term liabilities?

A. Long-term liabilities increased by $6,000.

B. Long-term liabilities decreased by 5.92%.

C. Long-term liabilities increased by 6.21%.

D. Long-term liabilities decreased by $1,500.

Question 11 of 205.0 Points

There are several reasons an organization might pursue sustainable initiatives. "A legislative act requires retailers to take back old batteries and electronic devices for recycling or reuse." This situation is an example of which type of reason to implement sustainable initiatives?

A. Cost reduction

B. Regulatory compliance

C. Stakeholder influence

D. Competitive strategy

Question 12 of 20 5.0 Points

Which of the following items represents monetary information in an environmental management accounting system?

A. Kilowatt hours of electricity used

B. Cost of upgrading factory equipment to reduce emissions

C. Ratio of recycled trash to total trash

D. Cost of janitorial services in office

Question 13 of 20 5.0 Points

A company's inventory account increased $26,500 and its accounts payable account decreased $18,250 during the year. The accounts payable relates only to the acquisition of inventory. Sales were $789,500 and cost of goods sold was $532,700. What was the amount of payments to suppliers of inventory?

A. $550,950

B. $577,450

C. $540,950

D. $834,250

Question 14 of 20 5.0 Points

Alexander Industries, in Chicago, plans to take advantage of the winds blowing in from Lake Michigan. Alexander is developing a project to install a wind turbine that would generate electricity and reduce energy costs. The turbine would have an initial cost of $500,000 and would provide a net cost savings of $57,000 per year. The turbine will have a life of 25 years. What is the payback period, in years, for the wind turbine?

A. 8.77 years

B. 9.08 years

C. 25 years

D. 28.75 years

Question 15 of 205.0 Points

A company reported the following amounts of net income: