In using the total cost concept of applying the cost-plus approach to product pricing, only profit is covered in the markup.

What is the effect of a stock dividend on the balance sheet?

Hodges, Inc. had the following assets and liabilities as of September 30, 2013: Assets – $56,327 and Liabilities – $28,416. If assets increased by $3,914 and equity increased by $2,290 during October, what is the increase or decrease in liabilities of Hodges as of October 31, 2013?

In computing the rate earned on total assets, interest expense is added to net income before dividing by average total assets.

Cash dividends are not paid on shares of treasury stock.

Earnings per common share is one factor that influences the decision to use debt financing or equity financing.

Which of the following is a reason to undergo a reverse stock split?

A voucher:

Money market funds, commercial paper, and U.S. Treasury Bills are examples of cash equivalents.

Which of the following accounts is reported in the noncurrent liabilities section of the corporate balance sheet?

Which one of the following is not a characteristic generally evaluated in ratio analysis?

Under the accrual basis of accounting, net cash flows from operating activities on the statement of cash flows will normally be the same as net income.

Activity-based costing is a method of accumulating and allocating costs by department.

Inventories of merchandising and manufacturing businesses are reported as current assets on the balance sheet.

The purpose of an audit is to:

In using the total cost concept of applying the cost-plus approach to product pricing, only profit is covered in the markup.

Using the job order cost system, service businesses are able to bill clients on a weekly or monthly basis, even when the job has not been completed.

The __________ is prepared with various sections, subsections, and captions that aid in its interpretation and analysis.

The framework that has become widely accepted as the standard by which companies design, analyze, and evaluate internal controls is the:

Fixed assets are reported at their book value on the balance sheet.

If employees accept a wage contract that decreases the unit contribution margin, the break-even point will decrease.

If paid-in capital in excess of par-preferred stock is $80,000, preferred stock is $500,000, paid-in capital in excel of par-common stock is $50,000, common stock is $1,000,000, and retained earnings is $230,000, the total stockholders’ equity is $1,860,000.

The estimated amount that an asset can be sold for at the end of its useful life is called its book value.

The document authorizing the issuance of materials from the storeroom for use in manufacturing is called:

If a company has current assets totaling $56,000 and current liabilities totaling $40,500, then the company’s working capital totals $15,500.

Under which method of inventory costing is the cost flow assumed to be in the reverse order in which the expenditures were made?

The process of a company selling its accounts receivable to another company is referred as:

Which of the following is a characteristic of the just-in-time philosophy?

Reporting under managerial accounting is not restricted by specific rules such as generally accepted accounting principles (GAAP).

Management’s philosophy and operating style would affect which of the following elements of internal control?

The objective of most businesses is to maximize profits.

The payment of a liability:

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as factory overhead cost.

If the total unit cost of manufacturing Product Y is currently $40 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $48.

Which of the following information is not provided by job cost sheets?

What are current liabilities?

When a business sells more than one product at varying selling prices, the business’s break-even point can be determined as long as the number of products does not exceed:

Under the cash basis of accounting, expenses are recorded when paid.

A practical approach that is frequently used by managers when setting normal selling price is the:

The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.