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ACCT 526 CERTIFICATION EVALUATION
2026 SOLVED QUESTION COLLECTION
โ over applied OH. Answer: ___ occurs when actual overhead costs are lower than overhead applied to jobs; MFO has a credit balance at this time. This happens because more costs were applied to jobs than were actually incurred. Often transferred to COGS to correct as a credit. โ job costing. Answer: ___ records revenues and costs for each job/unique product I.e., custom home, custom furniture, etc. โ Process costing. Answer: ___ records revenues and costs for batches of identical units of products, I.e., soft drinks, milk, lumber, paper, etc. โ variable. Answer: ___ costs which change in total with direct proportion to changes in volume and per unit cost remains constant. โ relevant range.
Answer: The range of activity index over which the company expects to operate during the year is the ___. โ Investing Activity; Source of Cash. Answer: Sold a warehouse for $750, โ Operating Activity; Source of Cash. Answer: Reported a profit of $100,000. โ Financing Activity; Use of Cash. Answer: Retired long-term bonds โ Financing Activity; Use of Cash. Answer: Paid cash dividends of $350, โ Financing Activity, Source of Cash. Answer: Obtained a mortgage for a new building from a local bank โ Investing Activity; Use of Cash. Answer: Purchased a new robotic system โ Financing Activity; Source of Cash.
โ Investing Activity; Source of Cash. Answer: Sold a 30% interest in a company โ Financing Activity; Use of Cash. Answer: Paid cash dividends of $1,888, โ Investing Activity; Source of Cash. Answer: Sold a new plant for $4,720, โ Investing Activity; Use of Cash. Answer: Purchased equipment for $472, โ Financing Activity; Source of Cash. Answer: Issued common stock for $944, โ Deducted from net income. Answer: Gain on sale of an asset โ Deducted from net income. Answer: Increase in accounts receivable
โ Added to Net Income. Answer: Decrease in prepaid insurance โ Added to Net Income. Answer: Amortization expense โ Added to Net Income. Answer: Increase in accounts payable โ Added to Net Income. Answer: Uncollectible accounts expense โ Deducted from Net Income. Answer: Decrease in Wages payable โ Deducted from Net Income. Answer: Increase in inventories โ Added to Net Income. Answer: Depreciation expense โ b. serves as a control figure for the statement of cash flows.
a. cash collections decreased due to declining gross margins. b. cash collections from customers were less than the revenues reported. c. cash collections increased due to increasing sales. d. cash collections from customers were reduced by cash payments to vendors. e. None of these โ e. need "cash dividends" and "the purchase of long-term assets".. Answer: Uses of cash include a. cash dividends. b. the sale of old equipment c. the purchase of long-term assets d. need "cash dividends" and "the sale of old equipment" e. need "cash dividends" and "the purchase of long-term assets" โ d. The gain of $5,000 is deducted in the operating activities section of the statement of cash flows.. Answer: Wordmill Publications purchased a printing machine for $40,000 on January 1, 20X1. On December 31, 20X5, it sold the printing machine for $25,000. The book value of the equipment on
the date of sale was $20,000. Assuming that the company used the indirect method while preparing its statement of cash flows, which of the following is true of the treatment of the gain on sale of the printing machine in the cash flow statements? a. The gain of $5,000 is deducted in the financing activities section of the statement of cash flows. b. The gain of $5,000 is added in the operating activities section of the statement of cash flows. c. The gain of $5,000 is added in the cash flows from financing activities section of the statement of cash flows. d. The gain of $5,000 is deducted in the operating activities section of the statement of cash flows. โ c. outflow of $100,000.. Answer: Silver Trading Corp. recorded a net income of $200,000 for the year 20X1. For the same period, the company purchased land for $150,000. It sold some of its long term investments for $50, during the period. The company also recorded a depreciation of $10,000 on its equipment. Considering the above transactions, Silver's net cash flows from investing activities for the year would be an: a. inflow of $200,000. b. inflow of $50,000.
b. The company should report the issue of stock and acquisition of land as financing activities in the statement of cash flows. c. The company should report the issue of stock and acquisition of land in a supplementary schedule attached to the statement of cash flows. d. The company should report the issue of stock as an investing activity and acquisition of land as a note in a supplementary schedule attached to the statement of cash flows. โ b. Issuing of common stock. Answer: Which of the following is an example of a cash flow from financing activity? a. Revenue from sales b. Issuing of common stock c. Purchase of long-term assets d. Dividends received from investments in other securities โ False. Answer: A positive cash balance on the balance sheet is an indicator of stable profits. โ True.
Answer: If a firm is experiencing cash flow problems, acquiring it could lead to greater future costs. โ False. Answer: Activities that decrease cash are sources of cash and referred to as cash inflows. โ False. Answer: Cash flows are classified into operating activities, saving activities, and spending activities on the statement of cash flows. โ b. 1,253,000. Answer: Swasey Company provided the following partial comparative balance sheets and the Income Statement for 20X2. Accounts Receivable 20X1 - 755, 20X2 - 677, Inventories 20X1 - 295, 20X2 - 315,
Murray Company Comparative Balance Sheets At December 31, 20X1 and 20X 20X1 20X Bonds Payable - 295,000. Mortgage payable 50,000.00 - Common stock 187,500.00 187,500. Paid-in capital in excess of par 140,000.00 140,000. Retained earnings 912,500.00 1,162,500. Compute the financing cash flows for the current year. a. 35, b. 90, c. 15, d. 45, โ a. The sum of the operating, investing, and financing cash flows must equal the change in cash from 20X1 to 20X2.. Answer: Explain the role of the change in cash flow in the statement of cash flows.
20X1 20X
Cash $1,473,000 $2,260, a. The sum of the operating, investing, and financing cash flows must equal the change in cash from 20X1 to 20X2. b. The operating cash flow must be greater than the change in cash from 20X1 to 20X2. c. The sum of the operating, investing, and financing cash flows must greater the change in cash from 20X1 to 20X2. d. The sum of the operating and financing cash flows must equal the change in cash from 20X1 to 20X2. โ c. $787,000. Answer: Blaylock Company provided the following information: Cash 20X1 - 1,473, 20X2 - 2,260, Calculate the change in cash โ c. 20 units per hour; 0.05 hour(s).
โ therapy treatments directed by physician; hours of therapy. Answer: providing physical therapy โ using equipment to monitor patient conditions; monitoring hours. Answer: monitoring patients โ managerial accounting oriented. Answer: Ben Heald, head of production, wondered whether it would be more cost effective to buy parts partially assembled or to buy individual parts and assemble them at the Arben factory. Is this managerial accounting oriented or financial accounting oriented? โ financial accounting oriented. Answer: The president of Arben reminded Jenna that the stockholders' meeting was coming up, and he needed her to prepare a PowerPoint presentation showing the income statement and balance sheet information for last year. Is this managerial accounting oriented or financial accounting oriented? โ Managerial accounting oriented.
Answer: Ellen Johnson, vice president of sales, has decided to expand the sales offices for next year. She sent Jenna the information on next year's rent and depreciation information for budgeting purposes. Is this managerial accounting oriented or financial accounting oriented? โ Financial accounting oriented. Answer: Jenna's assistant, Mike, received the information from Ellen on depreciation and added it to depreciation expenses and accumulated depreciation on office equipment. Is this managerial accounting oriented or financial accounting oriented? โ Managerial accounting oriented. Answer: Jenna compared the budgeted spending on materials used in production with the actual spending on materials used in production. Materials spending was significantly higher than expected. She set up a meeting to discuss this outcome with Ben Heald so that he could explain it. Is this managerial accounting oriented or financial accounting oriented?
โ e. All of these. Answer: Which of the following is a characteristic of managerial accounting? a. It identifies nonfinancial information useful to internal users b. It measures nonfinancial information that is useful for controlling costs. c. Subjective information may be used. d. It is broad-based and multidisciplinary. e. All of these โ Decision Making. Answer: What is the managerial accounting objective(s) that are applicable for each scenario: planning, controlling (including performance evaluation), or decision making. Laboratory Manager: An HMO approached me recently and offered us its entire range of blood tests. It provided a price list revealing the amount it is willing to pay for each test. In many cases, the prices are below what we normally charge. I need to know the costs of the individual tests to assess the feasibility of accepting its offer and perhaps suggest price adjustments on some of the tests. โ Controlling.
Answer: What is the managerial accounting objective(s) that are applicable for each scenario: planning, controlling (including performance evaluation), or decision making. Operating Manager: This report indicates that we have 30% more defects than originally targeting. An investigation into the cause has revealed the problem. We were using a lower-quality material than expected, and the waste has been higher than normal. By switching to the quality level originality specified, we can reduce the defects to the planned level. โ Planning. Answer: What is the managerial accounting objective(s) that are applicable for each scenario: planning, controlling (including performance evaluation), or decision making. Divisional Manager: Our market share has increased because of higher-quality products. Current projections indicate that we should sell 25% more units than last year. I want a projection of the effect that this increase in sales will have on profits. I also want to know our expected cash receipts and cash expenditures on a month-by- month basis. I have a feeling that some short-term borrowing may be necessary. โ Controlling.
