Midterm Exam Essay

1. (TCO 1) Suppose your ac caller sold $25,000 in trade to a customer for cash. How does this transaction bear on the bill equation? (Points 12) 2. (TCO 2) Suppose your company sold $50,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation? (Points 12) 3. (TCO 3) proportionnalisation is one of the components of the fraud triangle. What types of rationalization could a person use to unfreeze misconduct? How can a company protect itself from rationalization as a part of fraud? (Points 12) 4. (TCO 4) What is plane analysis of financial statements? How does horizontal analysis differ from vertical analysis? (Points 12)5. (TCO 3) Separation of duties is a f entirely upon feature in an internal control system. Why is separation of duties such an important internal control? Give an example of separation of duties as an internal control. (Points 24) 6. (TCO 1) Describe the balance sheet. Why is this statement important to the compan y, creditors, and investors? (Points 24) 7. (TCO 4) public figure and describe one liquidity ratio. What does this ratio measure? What is the formula for this ratio? (Points 24)ACCT 301 Midterm Exam 21. (TCO 1) The retained earnings statement shows all of the by-line except which one? 2. (TCO 1) Managements views on the companys short-term debt paying ability, expansion financing, and results of operations ar represent in which of the next? 3. (TCO 4) For 2010, Fielder Corporation reported internet income of $30,000 net sales $400,000 and average share outstanding 6,000. There were no preferable stock dividends. What was the 2010 earnings per share? 4. (TCO 4) A useful measure of solvency is which of the following? 5. (TCO 2) Which pair of accounts follows the rules of debit and credit, in relation to increases and decreases, in the same personal manner? 6. (TCO 2) The principle purpose of posting is which of the following? 7. (TCO 3) Joe is a warehouse custodian, and as well maintains the accounting record of the inventory held at the warehouse. An assessment of this situationindicates8. (TCO 3) The following information was taken from Hurlbert Company cash compute for the month of June 9. (TCO 11) film directorial accounting information does which of the following? 10. (TCO 11) Which one of the following is not a direct material? 11. (TCO 11) Sales commissions are classified as which of the following? 12. (TCO 11) Manufacturing costs include which of the following? 13. (TCO 11) Neeley Manufacturing Company reported the following closing information 14. (TCO 5) What effect do changes in activity have on resolute costs per unit? 15. (TCO 5) Which one of the following is not an self-reliance of CVP analysis?ACCT 301 Midterm Exam 31. (TCO 5) A company has get along fixed costs of $210,000 and a contribution bank ratio of 30%. How a good deal sales are necessary to break even? 2. (TCO 5) How much sales are required to earn a target income of $7 0,000, if append fixed costs are $100,000 and the contribution margin ratio is 40%? 3. (TCO 6) For which one of the following budgeting aspects does the budget committee generally have the duty? 4. (TCO 6) Under what situation might a budget be roughly effective? 5. (TCO 6) How does long-range planning compare to a master budget? 6. (TCO 6) Which one of the following is a source of information used to evolve the budgeted income statement? 7. (TCO 7) When is a static budget most appropriate in evaluating a managers performance? 8. (TCO 7) Which type of center is the housekeep department of a manufacturing company? 9. (TCO 7) For which of the following is an investment center manager responsible?10. (TCO 7) Merck Pharmaceuticals is evaluating its Vioxx division, an investment center. The division has a $45,000 controllable margin and $300,000 of sales. How much will Mercks average operating assets be when its slide by on investment is 10%? 11. (TCO 11) Financial and managerial ac counting are both concerned with the economic events of an enterprise. Similarities between financial and managerial accounting do exist, but they have a different focus. Briefly bring out between financial and managerial accounting as they relate to (1) the firsthand users, (2) the type and frequency of reports, (3) the purpose of reports, and (4) the content of reports. 12. (TCO 4) Are short-term creditors, long creditors, and stockholders primarily interested in the same characteristics of a company? Explain. 13. (TCO 5) In the month ofSeptember, Nixon Company sold 800 units of product. The average sales price was $30. During the month, fixed costs were $7,200 and variable costs were 60% of sales.