Management Accounting and Balance Sheet
1) The standards and rules that are recognized as a general guide for financial reporting are called __________.
D. generally accepted accounting principles
2) What is value chain management best defined as?
A. All activities associated with providing a product or service
3) These are selected account balances on December 31, 2008.
Land (location of the corporation’s office building) $150,000
Land (held for future use) 225,000
Corporate Office Building 900,000
Inventory 300,000
Equipment 675,000
Office Furniture 150,000
Accumulated Depreciation 450,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
D. $1,650,000
4) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
D. are proven theories of accounting
5) The cost principle requires that when assets are acquired, they be recorded at __________.
B. exchange price paid
6) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
Income Statement Balance Sheet
Dr. Cr. Dr. Cr.
Totals $58,000 $48,000 $34,000 $44,000
The net income (or loss) for the period is __________.
C. $10,000 loss
7) The conceptual framework developed by the Financial Accounting Standards Board __________.
C. is viewed as providing a constitution for setting accounting standards for financial reporting
8) What effect do current technology changes have on managerial accounting?
A. Reduction of reporting costs of managerial accounting information
9) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
C. 6,200 units
10) One of
D. generally accepted accounting principles
2) What is value chain management best defined as?
A. All activities associated with providing a product or service
3) These are selected account balances on December 31, 2008.
Land (location of the corporation’s office building) $150,000
Land (held for future use) 225,000
Corporate Office Building 900,000
Inventory 300,000
Equipment 675,000
Office Furniture 150,000
Accumulated Depreciation 450,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
D. $1,650,000
4) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
D. are proven theories of accounting
5) The cost principle requires that when assets are acquired, they be recorded at __________.
B. exchange price paid
6) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
Income Statement Balance Sheet
Dr. Cr. Dr. Cr.
Totals $58,000 $48,000 $34,000 $44,000
The net income (or loss) for the period is __________.
C. $10,000 loss
7) The conceptual framework developed by the Financial Accounting Standards Board __________.
C. is viewed as providing a constitution for setting accounting standards for financial reporting
8) What effect do current technology changes have on managerial accounting?
A. Reduction of reporting costs of managerial accounting information
9) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point?
C. 6,200 units
10) One of