Bachelor of Science in Accountancy Multiple Choice

MULTIPLE CHOICE 1. Financial Statements for external users can be described as: A. User-specific B. General purpose C. Special purpose D. Management report 2. Planning is a function that involves A. Hiring the right people for a particular job B. Coordinating the accounting information system C. Setting goals and objectives for an entity D. Analyzing financial statements 3. Which of the following is not a management function? A. Constraining B. Planning C. Controlling D. Directing and motivating 4. A manager that is establishing objectives is performing management function? A. Motivating B. Directing C. Planning D. Constraining 5. Management accounting information is generally prepared for A. Stockholders B. Creditors C. Managers D. 6. Managerial accounting is applicable to A. Service entities B. Manufacturing entities C. Merchandising entities D. All of these 7. Which of the following is not an internal user? A. Creditor B. Department manager C. Cost accountant D. Controller 8. Managerial accounting is also called A. management accounting B. controlling C. analytical accounting D. inside reporting 9. Management accountants would not A. Assist in budget planning B. Prepare reports primarily for external users 10. 11. 12. 13. 14. 15. C. Determine cost behavior D. Be concerned with the impact of cost and volume on profits Internal reports must be communicated A. Daily B. Monthly C. Annually D. As needed Which of the following statement about internal reports is not true? A. The content of internal reports may extend beyond the double-entry accounting system B. Internal reports may show all amounts at market values C. Internal reports may discuss prospective events D. Most internal reports are summarized rather than detailed Internal reports are generally A. Aggregated B. Detailed C. Regulated D. Unreliable Management accounting information A. Pertains to the entity as a whole and is highly aggregated B. Pertains to subunits of the entity and may be very detailed C. Is prepared only once a year D. Is constrained by the requirements of FASB Financial accounting information is used for reporting to A. External parties B. Investors C. Creditors D. Managers Which of the following statements about costs accounting is not true? A. Is the intersection between financial and management accounting B. Information generated by cost accounting is used by both financial and managerial accounting C. Cost accounting provides product cost information to internal parties such s managers for planning and controlling. PROBLEM 1 Presented below is a list of costs and expenses usually incurred by Ram Corporation, a manufacturer of furniture, in its factory. 1. 2. 3. 4. 5. Metal used in manufacturing tables Insurance on factory machines Leather used in manufacturing furniture Wages paid to machine operators Depreciation of factory machinery 6. 7. 8. 9. 10. Salaries of factory supervisors Wood used in manufacturing furniture Sandpaper. Bolts and nails Property taxes on factory building Rent of factory building INSTRUCTIONS: Classify the above items into the following categories (a) DIRECT MATERIALS (b) DIRECT LABOR and (c) MANUFACTURING OVERHEAD. A. DIRECT MATERIALS Leather used in manufacturing furniture Wood used in manufacturing furniture Metal used in manufacturing tables B. DIRECT LABOR Wages paid to machine operators C. MANUFACTURING OVERHEAD Depreciation of factory machinery Sandpaper. Bolts and nails Insurance on factory machines Salaries of factory supervisors Property taxes on factory building Rent of factory building