QUESTION 1 The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter are called: Minimum legal capital. Stock subscriptions. Organization expenses. Selling expenses. Prepa

QUESTION 1

1. The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter are called:

    

   Minimum legal capital.

    

   Stock subscriptions.

    

   Organization expenses.

    

   Selling expenses.

    

   Prepaid fees.

10 points   

QUESTION 2

1. At the end of the accounting period, the owners of debt securities: 

    

   Must report the dividend income accrued on the debt securities.

    

   Must retire the debt.

    

   Must record a gain or loss on the interest income earned.

    

   Must record a gain or loss on the dividend income earned.

    

   Must record any interest earned on the debt securities during the period.

10 points   

QUESTION 3

1. The market value (price) of a bond is equal to:

    

   The present value of all future cash payments provided by a bond.

    

   The present value of all future interest payments provided by a bond.

    

   The present value of the principal for an interest-bearing bond.

    

   The future value of all future cash payments provided by a bond.

    

   The future value of all future interest payments provided by a bond.

10 points   

QUESTION 4

1. Long-term investments include:

    

   Investments in bonds and stocks that are not readily convertible to cash or not intended to be converted to cash in the short term.

    

   Investments in marketable stocks that are intended to be converted into cash in the short-term.

    

   Investments in marketable bonds that are intended to be converted into cash in the short-term.

    

   Only investments readily convertible to cash.

    

   Investments intended to be converted to cash within one year.

10 points   

QUESTION 5

1. The statement of cash flows is:

    

   Another name for the statement of financial position.

    

   A financial statement that presents information about changes in equity during a period.

    

   A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.

    

   A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date.

    

   A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.

10 points   

QUESTION 6

1. The background on a company, its industry, and its economic setting is usually included in which of the following sections of a financial statement analysis report?

    

   Executive summary.

    

   Analysis overview.

    

   Evidential conclusions.

    

   Factor analysis.

    

   Inferences.

10 points   

QUESTION 7

1. Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

    

   Raw materials purchased/Average raw materials inventory.

    

   Average raw materials inventory/Raw materials used.

    

   Raw materials used/Average raw materials inventory.

    

   Ending raw materials/Raw materials used * 365.

    

   Raw materials used/Beginning raw materials inventory * 365.

10 points   

QUESTION 8

1. Job order costing systems normally use:

    

   Periodic inventory systems.

    

   Perpetual inventory systems.

    

   Real inventory systems.

    

   General inventory systems.

    

   Any inventory systems is acceptable.

10 points   

QUESTION 9

1. In comparison to a general accounting system, a cost accounting system for a manufacturing company places an emphasis on:

    

   Periodic inventory counts.

    

   Total costs.

    

   Continually updating costs of materials, work in process, and finished goods inventories.

    

   Products and average costs.

    

   Large volume operations involving standardized products.

10 points   

QUESTION 10

1. Features of a job costing system include all but which of the following:

    

   Diversity of products produced.

    

   Mass production.

    

   Heterogeneity.

    

   Customization.

    

   Separate manufacturing from other products.