ACC 560: Comprehensive Financial Accounting and Management Control System Final Exam ACC 560 FINAL EXAM 1) According to the Financial Executives Institute, one function of controllership is _____. A.short term financing B. reporting and interpreting financial information C.investments D.provision of capital 2) Performance reports _____. A. provide feedback by comparing results with plans and by highlighting deviations from plans B.ignore areas that are presumed to be running smoothly C.are quantitative expressions of action plans D.are deviations from a plan 3) Budgets _____. A.provide feedback by comparing results with plans and by highlighting deviations from plans B.ignore areas that are presumed to be running smoothly C. are quantitative expressions of action plans D.are deviations from a plan 4) Ethical accountants are important to society because _____. A. the information produced is reliable B.none of these answers is correct C.they pay their taxes D.they will not go to prison and waste taxpayers’ money 5) According to the Institute of Management Accountants’ Statement of Ethical Professional Practice, the standard of competence includes: A.avoiding actual or apparent conflicts of interest B.All of these answers are correct C. the ongoing development of the accountant’s knowledge and skills D.disclosing all relevant information 6) According to the Institute of Management Accountants’ Statement of Ethical Professional Practice, the standard of objectivity includes _____. A.all of these answers are correct B.disclosing all relevant information C.avoiding actual or apparent conflicts of interest D. the ongoing development of the accountant’s knowledge and skills 7) Which scorecard function is associated with making non - routine decisions? A. None of these answers is correct B. Problem solving is associated with making non - routine decisions. C.Attention directing is associated with making non - routine decisions. D.Scorekeeping is associated with making non - routine decisions. 8) _____ is the field of accounting that develops information for external decision makers such as stockholders, suppliers, banks, and government regulatory agencies. A. Financial accounting B.Management accounting C.Tax accounting D.Auditing 9) Launching a new product line is an example of _____. A.organization B.controlling C.planning D. decision making 10) The _____ is also called the statement of financial position. A.statement of cash flows B.statement of retained earnings C. balance sheet D.income statement 11) The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when _____. A.the accounting equation is decreased B.the transaction occurs C.cash is received or disbursed D. revenues are earned and expenses are incurred 12) The _____ is not one of the three major financial statements. A. statement of equity position B.balance sheet C.income statement D.statement of cash flows 13) The use of acquisition cost less depreciation in valuing an asset on the balance sheet is the logical result of the _____ accounting convention. A.materiality B. cost - benefit C.conservatism D. continuity 14) The accounting convention of _____ guides the relative sophistication of the accounting system. A materiality B.conservatism C. cost benefit D.objectivity 15) The accounting convention of _____ means selecting the method of measurement that yields the gloomiest immediate results. A. conservatism B.materiality C.objectivity D.cost benefit 16) The statement of cash flows is used for all of the following except_____. A.evaluating the creditworthiness of the organization B. revealing commitments that may restrict future courses of action C.determining a company’s ability to pay its debts when they are due D.showing the relationship of net income to changes in cash 17) The difference between a single and multiple step income statement is that a single step income statement_____. A.shows only one year’s net income, whereas a multiple step income statement shows multiple years’ net income B.calculates gross profit and operating income, whereas a multiple step income statement does not C.calculates net income using one method, whereas a multiple step income statement calculates net income under two or more methods D. groups all revenues together and all expenses together, whereas a multiple step income statement separates certain revenues and expenses from each other and presents subtotals 18) Sylvester Company requires clients to pay in advance for legal services. One such client made a $4,000 payment on May 1, and Sylvester Company recorded this transaction in the appropriate liability account. As of May 20, the legal services that the client requested had been completed. The May 20 accounting entry will: A. decrease liabilities and increase revenues B. increase revenues and increase liabilities C.decrease assets and decrease liabilities D.decrease assets and increase revenues 19) Output measures of both resources and activities are _____. A.variable activities B.fixed activities C.stages of production D. cost drivers 20) Which of the following is not a cost driver of customer services costs? A. Travel costs are not a cost driver of customer services costs. B. All of these answers are correct C.Number of service calls is not a cost driver of customer services costs. D.Hours spent servicing products are not a cost driver of customer services costs. 21) Which value chain function would include the cost of computer - aided design equipment and cost to develop the prototype of a product? A. The design of product, services, and processes function would include these costs. B.The marketing function would include these costs C.The production function would include these costs. D. The distribution function would include these costs. 22) Walnut Corporation sells desks at $480 per desk. The costs associated with each desk are as follows: Direct materials $195 Direct labor 126 Variable factory overhead 51 Total fixed costs for the period are $456,840. The contribution margin per desk is _____. A. $108 B.$126 C.$51 D.$195