accounting help 426165

Aug 29, 2021 | Uncategorized

Question 1

  1. Repair bills for large machinery may include a flat fee for the visit to the company’s premises plus additional labor charges per hour of repair work and various costs of replacement parts needed. What type of cost is the repair? Answer
    a. Variable cost
    b. Selling cost
    c. Mixed cost
    d. Fixed cost

1 points

Question 2

  1. Using the contribution margin approach, find the breakeven point in units for Consumer Products if the selling price per unit is $12, the variable cost per unit is $6, and the fixed costs are $8,040. Answer
    a. 1,340
    b. 6,000
    c. 670
    d. 1,200

1 points

Question 3

  1. The equation that will provide the breakeven point in units (SP = selling price) is Answer
    a. VC per unit + FC = SP per unit A?´ BE units.
    b. SP per unit ‘ VC per unit = FC Af· BE units.
    c. BE units = FC Af· CM per unit.
    d. BE units = (SP VC) Af· FC per unit.

1 points

Question 4

  1. At production levels beyond the breakeven point, Answer
    a. profit is negative.
    b. variable costs are zero.
    c. fixed costs are not recovered.
    d. profit is positive.

1 points

Question 5

  1. Dilly LLC, wants to make a profit of $30,000. It has variable costs of $99 per unit and fixed costs of $20,000. How much must it charge per unit if 5,000 units are sold? Answer
    a. $69
    b. $99
    c. $109
    d. $84

1 points

Question 6

  1. The receivable turnover and inventory turnover ratios are used to analyze Answer
    a. leverage.
    b. profitability.
    c. liquidity.
    d. long term solvency.

1 points

Question 7

  1. During the year, Dempsey Corporation’s current ratio increased while its quick ratio decreased. Which of the following could help explain this situation? Answer
    a. An increase in accounts payable during the year
    b. A decrease in accounts receivable during the year
    c. An increase in inventory levels during the year
    d. The sale of short term investments during the year

1 points

Question 8

  1. Horizontal analysis of comparative financial statements includes the Answer
    a. calculation of the percentage of net sales for each item listed.
    b. development of common size statements.
    c. calculation of dollar amount changes and percentage changes from the previous to the current year.
    d. calculation of liquidity ratios.

1 points

Question 9

  1. The existence of diversified companies makes which of the following very difficult? Answer
    a. The preparation of interim financial statements
    b. The compilation of segmented information
    c. Comparison with industry norms
    d. Use of more than one depreciation or inventory method

1 points

Question 10

  1. Which of the following describes the return on assets ratio? Answer
    a. Net income plus income tax expense divided by average total assets
    b. Average total assets divided by net sales
    c. Net income divided by average total assets
    d. Average total assets divided by net income