TopHat

Question 1

All but which of the following are included in the IMA’s code of professional conduct for CPA’s?

Answer 1

Confidence

// Integrity
Confidentiality
Credibility

Question 2

Which of the following ratios helps measure a company’s ability to pay its current liabilities?

Answer 2

Quick ratio

Question 3

You are given the following information: Cash $1,000Accounts receivable $500Building $10,000Accounts payable $500Unearned revenues $200Salaries payable $100Notes payable $5,000What is the current ratio?

Answer 3

1.875

Question 4

All but which of the following ratios would help to evaluate a company’s profitability?

Answer 4

Times Interest earned ratio

Question 5

All but which of the following would be considered product costs for Coca Cola?

Answer 5

Sales Commissions

// Utilities for the production plant
Syrup used to produce Diet Coke
Production supervisor’s salary

Question 6

All but which of the following are product costs for a baker?

Answer 6

Commissions paid to sales people

// Brown Sugar
Electricity for the kitchen
Wages paid to bakers

Question 7

Raw materials beginning balance $5 Raw materials ending balance $30WIP Beginning Balance $20WIP Ending balance $5Direct materials added to production $10 Direct labor $15 Overhead $15Finished goods beginning balance $15What is the company’s Cost of Goods Manufactured for the Period?

Answer 7

$55

Question 8

A baker has some of the following costs for 2015: Depreciation on the sales office: $12,200Kitchen supervisor salary $24,000 Wages paid to janitorial staff $12,000Costs of shipping to customers $3,300Wages paid to bakers $30,000Rent for the kitchen space $6,000Advertising expenses: $1,500Conversion costs for 2015 are:

Answer 8

$72,000

Question 9

Managerial accounting differs from financial accounting in that managerial accounting:

Answer 9

Emphasizes data relevance over data objectivity

Question 10

A company allocates overhead based on baking hours. You are given the following information for 2015:Estimated overhead: $100,000 Actual overhead $90,000Estimated baking hours 50,000Actual baking hours 60,000The predetermined overhead rate is:

Answer 10

$2.00 per baking hour

Question 11

A company allocates overhead based on direct labor hours. You are given the following information for October 2015:Direct labor hours worked: 1,200Estimated OH Hours 1,000Estimated overhead $2,000Actual OH $3,000 Overhead was:

Answer 11

Underapplied by $600

Question 12

All but which of the following statements regarding managerial and financial accounting are true?

Answer 12

Financial and managerial accounting information must follow GAAP

// - Managerial Accounting information is more detailed than financial accounting information.

• Managerial accounting information is used primarily for internal decision making, where financial information is prepared for external users
• Management accounting information is less concerned with historical information than financial accounting.

Question 13

You are given the following information for 12/31/15:Revenues $10,000Cost of Goods Sold $2,000Selling and Admin Expenses $2,000Common Stock (1.00 par value, no treasury stock) $3,000Dividends of .50 per share were declared on 12/15.What is earnings per share?

Answer 13

$2

Question 14

A company allocates overhead based on direct labor hours. You are given the following information for October 2015:Direct labor hours worked: 3,500Estimated DL hours worked 4,000Actual OH $8,700Estimated overhead $10,000 Overhead was:

Answer 14

Overapplied by $50

Question 15

All but which of the following would be considered product costs for Apple?

Answer 15

Research and development costs for new products

// - Cost of glass screen for iphone

• Cost of glue for glass screen for iphone
• Depreciation on robots used in manufacturing plant

Question 16

For Cainas Cookies, washing mixers, tools, etc. to change over from peanut butter cookies to sugar cookies is an example of a:

Answer 16

Batch Cost

Question 17

Which of the following would be considered an external failure cost?

Answer 17

Warranty Costs

Question 18

Which of the following would be considered an preventioncost?

Answer 18

Costs to Train Personnel

Question 19

All but which of the following would be considered costs of quality?

Answer 19

Transportation costs

// Using better materials
Testing of equipment
Product liability claims

Question 20

What would be considered a unit level cost for Gigi’s Cupcakes when producing her St. Patrick’s Day cupcakes?

Answer 20

The cupcake liners

Question 21

Coca Cola uses a departmental overhead rate to allocate its overhead to different jobs, and has two departments: Mixing and Bottling. The mixing department uses a departmental rate of $10 per machine hour, and the bottling department uses a departmental rate of $25 per direct labor hour. Job 101 had the following information:Actual Results:Mixing Department: 4 machine hours used, 3 direct labor hours used Bottling Department: 8 machine hours used, 5 direct labor hours usedThe costs allocated to Job 101 for overhead would be:

Answer 21

$165

Question 22

Which of the following would be considered a batch level cost?

Answer 22

Cost for Toyota switch out painting of red Camry’s to Black Camry’s

Question 23

Which of the following would be a Unit level cost for Selena’s Sweets?

Answer 23

Cost of Cupcake liners