Online Questions – Valid Practice To your Accounting-for-Decision-Makers Exam (Updated 71 Questions) [Q40-Q60]

Q40. The following cost-volume-profit graph shows revenues and costs at various levels of production.
How many units should this company sell each month to realize a profit?

Q41. Which costs are found in a manufacturing company rather than a service-oriented company?

Q42. Which events represent financial information recorded in the accounting system of a business?

Q43. A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company’s products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?

Q44. Which body regulates a certified public accounting firm’s audit practices when the firm is auditing a large, publicly traded company?

Q45. Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet?

Q46. What would be the appropriate cost driver to allocate overhead for a call center?

Q47. What does it mean if a company has a debt ratio of 101.5%?

Q48. During the year, a company purchased goods on a credit basis for its supplies of $750.
What would be the impact on the accounting equation and financial statement?

Q49. Which information does a balance sheet provide about a company?

Q50. Which user group of financial statements evaluates the ability to repay loans?

Q51. Which current asset on a balance sheet appears first in the traditional category order for U.S.-based companies?

Q52. Which item is an operating activity under a U.S. generally accepted accounting principles (GAAP) statement of cash flows?

Q53. Which role do ethical standards have in management accounting?

Q54. A company manufactures and sells widgets. The following information is available:
* Total fixed costs per month are $300,000
* The variable cost per widget is $50
* Each widget sells for $100
How many widgets does the company need to sell each month to break even?

Q55. Which change occurred if the cost of goods sold moved from 76.8% to 72.6%?

Q56. What can be determined when a firm performs an external audit of a company’s financial statements?

Q57. What does the overall economic performance of a company for a given time period represent?

Q58. Which ratio provides a measure of how well a company turns sales into profits?

Q59. Which two details can management determine through a cost-volume-profit analysis?
Choose 2 answers.

Q60. A company’s statement of cash flows includes the following cash transactions.
Sales = $1,250,000
Inventory purchase = -$750,000
Property and equipment purchase = -$280,000
Interest payment on long-term debt = -$25,000
Payment of wages = -$315,000
Payment of rent = -$40,000
Borrowing long-term debt = $200,000
Payment of cash dividends = -$15,000
Repurchase of treasury stock = -$40,000
Total cash flows = -$5,000
What is the total cash flow from investing activities?