ACCT 2121 Final Review - Pt. 2

Question 1

which item is an indication of competence under the “ima statement of ethical professional practice”?
a. refrain from using confidential information for unethical or illegal advantage
b. perform professional duties in accordance with relevant laws, regulations, and technical standards
c. abstain from engaging in or supporting any activity that might discredit the profession
d. communicate information fairly and objectively.

Answer 1

b. perform professional duties in accordance with relevant laws, regulations, and technical standards

Question 2

which item is an indication of integrity under the standards of ethical conduct?
a. refrain from engaging in any conduct that would prejudice carrying out duties ethically
b. maintain an appropriate level of professional leadership and expertise by enhancing knowledge and skills
c. communicate information fairly and objectively
d. keep information confidential except when disclosure is authorized or legally required

Answer 2

a. refrain from engaging in any conduct that would prejudice carrying out duties ethically

Question 3

req’d sales (equation - in units)

Answer 3

(FC - Desired Profit)/(SP - VC) = req’d sale units

Question 4

supplies expense (equation)

Answer 4

Beginning Supplies + Purchased Supplies - Ending Supplies = Supplies Expense

Question 5

on the statement of cash flows, the investing activities section could include each of the following EXCEPT:
a. cash inflows from the sale of ppe
b. cash outflows from the purchase of ppe
c. cash outflows associated with increasing the company’s investment in mutual funds
d. cash inflows from sales revenue

Answer 5

d. cash inflows from sales revenue (sales rev on i/s: operating)

Question 6

which of the following would be included in cash flows from operating activities?
a. cash received from issuing 5-year bonds to investors
b. cash used to purchase equipment
c. cash dividends paid to stockholders
d. cash proceeds from sales

Answer 6

d. cash proceeds from sales

Question 7

if total liabilities decreased by $4,000, then:
a. assets must have decreased by $4,00, or stockholders’ equity must have increased by $4,000
b. assets must have increased by $4,000
c. stockholders’ equity must have decreased by $4,000
d. assets and stockholders’ equity each increased by $2,000

Answer 7

a. assets must have decreased by $4,00, or stockholders’ equity must have increased by $4,000

Question 8

raw materials to purchase (equation)

Answer 8

Desired RM + Req’d RM - On-hand RM = RM to be Purchased

Question 9

in the united states, our accounting rules are called generally accepted accounting principles (gaap). which standard-setting body continually monitors and updates gaap?

Answer 9

financial accounting standards board (fasb)

Question 10

an item is considered “material” if:

Answer 10

its size is likely to influence the decision of a creditor or investor

Question 11

which of the following items would NOT count toward manufacturing overhead (moh)?
a. lubricants, such as grease and oil, used to keep the factory equipment running smoothly
b. salaries of the factory’s custodial/janitorial team
c. salaries of the employees who put tires on the cars produced along the assembly line
d. cost of the insurance policy on the factory

Answer 11

c. salaries of the employees who put tires on the cars produced along the assembly line (direct labor)

Question 12

moh includes:

Answer 12

indirect materials, indirect labor, and operating expenses

Question 13

which of the following pairings is incorrect (parent acct; contra acct)?
a. bonds payable; discount on bonds payable and premium on bonds payable
b. ppe, excluding land; accumulated depreciation
c. accounts receivable; allowance for doubtful accounts
d. goodwill; accumulated amortization

Answer 13

d. goodwill; accumulated amortization

Question 14

how is cost of goods manufactured (cogm) calculated?

Answer 14

Beginning WIP + DM Used + DL + MOH - Ending WIP