ACC 561 Complete Course ACC561 Complete Course

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ACC 561 WEEK 1 WILEYPLUS PRACTICE QUIZ

1.The proprietorship form of business organization

2.Most business enterprises in the United States are

3.A business organized as a separate legal entity is a

4.Which of the following is the best definition of an internal user of accounting information?

5.Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules?

6.Which of the following groups uses accounting information to determine whether the company can pay its obligations?

7.Which of the following financial statements is divided into major categories of operating, investigating, and financing activities?

8.Ending retained earnings for a period is equal to:

9.The financial statement that summarizes the changes in retained earnings for a specific period of time is the

10.To show how successfully your business performed during a period of time, you would report its revenues and expenses in the

11.Which financial statement is prepared first?

12.An income statement shows

13.Dawson Corporation has the following information available for 2011:

Based on this information, what is Dawson’s Common Stock balance at the end of the year?

14.Declaring a cash dividend will

15.At December 31, 2012 Lowery Company had retained earnings of $2,184,000. During 2012 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2012 was $402,000. The retained earnings balance at the beginning of 2012 was:

16.Which of the following organizations issues accounting standards for countries outside the United States?

17.Generally accepted accounting principles

18.The agency of the United State Government that oversees the U.S. financial markets is the

19.What organization issues U.S. accounting standards?

20.Two of the major characteristics that make accounting information useful are

ACC 561 WEEK 1 WILEYPLUS ASSIGNMENT BE 1-7, BE 1-8

Resource: WileyPLUS

Complete the following Week 1 Assignment in WileyPLUS:

•Brief Exercise: 1-7

•Brief Exercise: 1-8

ACC 561 WEEK 1 INDIVIDUAL ASSIGNMENT FINANCIAL STATEMENT REVIEW

Select an American corporation.

Visit its website and download the Income Statement, Statement of Stockholders Equity, Balance Sheet, and Statement of Cash Flows.

Complete the University of Phoenix Material: Financial Statement Review Worksheet.

Submit the completed worksheet, copies of the downloaded financial statements, and a link to the website.

Click the Assignment Files tab to submit your assignment.

ACC 561 WEEK 2 WILEYPLUS PRACTICE QUIZ

1.The relationship between current assets and current liabilities is important in evaluating a company’s

2.Which of the following is a measure of liquidity?

3.Current assets divided by current liabilities is known as the

4.Danner Corporation reported net sales of $600,000 and $800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales represent of the base?

5.In analyzing financial statements, horizontal analysis is a

6.Comparative balance sheets

7.Assume the following cost of goods sold data for a company:

2013$1,500,000

2012$1,200,000

2011$1,000,000

If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013?

8.Comparisons of data within a company are an example of the following comparative basis:

9.The following schedule is a display of what type of analysis?

AmountPercent

Current assets$100,0025%

Property, plant, and equipment300,00075%

Total assets$400,000100%

10.A common measure of profitability is the

11.Which one of the following would be considered a long-term solvency ratio?

12. The current ratio is

13.Richards, Inc. has the following income statement (in millions):

RICHARDS, INC.

Income Statement

For the Year Ended December 31, 2012

Net Sales$180

Cost of Goods Sold60

Gross Profit120

Operating Expenses75

Net Income$45

Using vertical analysis, what percentage is assigned to net income?

ACC 561 WEEK 2 LEARNING TEAM REFLECTION ( COMPARATIVE AND RATIO ANALYSIS)

Write a paper of no more than 750 words in which you discuss the difference between comparative and ratio analysis. Differentiate and share the purpose and importance of each.

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ACC 561 WEEK 2 INDIVIDUAL ASSIGNMENT SARBANES-OXLEY ACT OF 2002

Write a paper that describes the main aspects of the regulatory environment which will protect the public from fraud within corporations, Pay particular attention to SOX requirements.

Required Elements:

•No more than 1400 words

•Specifically evaluate whether SOX will be effective in avoiding future frauds.

•Format consistent with APA guidelines

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ACC 561 WEEK 3 WILEYPLUS PRACTICE QUIZ

1.A major purpose of cost accounting is to

2.The two basic types of cost accounting systems are

3.A process cost system would most likely be used by a company that makes

4.Which of the following would be accounted for using a job order cost system?

5.The flow of costs in a job order cost system

6.The entry to record the acquisition of raw materials on account is

7.Time tickets should be approved by

8.The labor costs that have been identified as indirect labor should be charged to

9.Manufacturing overhead is applied to each job

10.A process cost accounting system is most appropriate when

11.Which of these best reflects a distinguishing factor between a job order cost system and a process cost system?

12.In process cost accounting, manufacturing costs are summarized on a

13.In a process cost system, product costs are summarized:

14.Which of the following is considered a difference between a job order cost and a process cost system?

15.The costs that are easiest to trace directly to products are

16.Other the most difficult part of computing accurate unit costs is determining the process amount of----------------------to assign to each product, service, or job.

17.The last step in activity-based costing is to

18.The first step in activity-based costing is to

19.A well-designed activity-based costing system starts with

20.An example of an activity cost pool is

ACC 561 WEEK 3 TEAM ASSIGNMENT AMERICAN CORPORATION ANALYSIS

Select an American corporation.

Visit its website and download its financial statements.

Write a paper of no more than 1250 words in which you conduct a comparative and ratio analysis to measure profitability and liquidity.

Click the Assignment Files tab to submit your assignment.

ACC 561 WEEK 3 WILEYPLUS ASSIGNMENT (BE 13-8, BE 13-9, BE 13-4, BE 13-5, BE 13-10, BE 13-13)

Access the following Week 3 Assignment in WileyPLUS:

•Brief Exercise 13-8 (essay)

•Brief Exercise 13-9 (essay)

•Brief Exercise 13-4

•Brief Exercise 13-5

•Brief Exercise 13-10

•Brief Exercise 13-13

Click the Assignment Files tab to submit your assignment.

ACC 561 WEEK 4 WILEYPLUS ASSIGNMENT PAPER EXERCISE 17-2

Accessthe following Week 4 reading, linked to this assignment:

•Broadening Your Perspective 17-2

Writea paper of no more than 750 words in which you respond to the Broadening Your Perspective 17-2 activity titled "Managerial Perspective" in Ch. 17 ofAccounting.

Click the Assignment Files tab to submit your assignment.

ACC 561 WEEK 4 LEARNING TEAM REFLECTION (CVP ANALYSIS)

Managerial accounting is all about making informed decisions. Cost-volume-profit (CVP) analysis is one of the most powerful tools available for managers to crunch numbers, gain a thorough understanding of a situation, and perform a what-if analysis.

Write a paper of no more than 750 words in which you discuss the activities and learning this week and share how CVP analysis may be helpful to an entrepreneur starting a new business.

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ACC 561 WEEK 4 WILEYPLUS PRACTICE QUIZ

1.A variable cost is a cost that

2.An increase in the level of activity will have the following effects on unit costs for variable and fixed costs:

3.A fixed cost is a cost which

4.Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?

5.Contribution margin

6.The equation which reflects a CVP income statement is

7.A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $150,000. The number of units the company must sell to break even is

8.Under absorption costing and variable costing, how are fixed manufacturing costs treated?

9.Management may be tempted to overproduce when using

10.Only direct materials, direct labor, and variable manufacturing overhead costs are considered product costs when using

ACC 561 WEEK 5 INDIVIDUAL WILEYPLUS ASSIGNMENT PAPER EXERCISE 18-1

Resource: WileyPLUS

Access the following Week 5 Assignment in WileyPLUS:

•Broadening Your Perspective 18-1

Write a paper of no more than 750 words in which you respond to the Broadening Your Perspective 18-1 activity titled "Decision Making Across the Organization" in Ch. 18 of Accounting.

Click the Assignment Files tab to submit your assignment.

ACC 561 WEEK 5 WILEYPLUS ASSIGNMENT (BE 18-8, BE 18-10, BE 18-11, BE 19-16, EX 19-17, BE 21-1, BE 21-4)

Resource: WileyPLUS

Complete the following Week 5 Assignment in WileyPLUS:

•Brief Exercise 18-8

•Brief Exercise 18-10

•Brief Exercise 18-11

•Brief Exercise 19-16

•Exercise 19-17

•Brief Exercise 21-1

•Brief Exercise 21-4

ACC 561 WEEK 5 INDIVIDUAL ASSIGNMENT COSTING METHODS PAPER (EXERCISE 19-17)

Write a paper of no more than 350 words after completing Exercise 19-17 in WileyPLUS in which you respond to the following questions:

•In this case, would it be better to use the variable or absorption costing method, and why?

•What are the benefits of the two methods?

•Which method would lead to the best decision when a competitor is submitting a lower bid for your product?

Click the Assignment Files tab to submit your assignment

ACC 561 WEEK 5 WILEYPLUS PRACTICE QUIZ

1.Why are budgets useful in the planning process?

2.A common starting point in the budgeting process is

3.Which of the following statements about budget acceptance in an organization is true?

4.Why is budgetary control?

5.The comparison of differences between actual and planned results

6.A static budget

7.A responsibility centers generate both revenues and costs?

8.The linens department of a large department store is

9.What is a standard cost?

10.Using standard costs

11.Unfavorable materials price and quality variances are generally the responsibility of the

ACC 561 WEEK 5 LEARNING TEAM DELIVERABLES

ACC 561 Week 5 Learning Team Deliverables

(Summary of Week 5)

ACC 561 WEEK 6 LEARNING TEAM REFLECTION (INCREMENTAL ANALYSIS)

Incremental analysis is considered to be more economical than a comprehensive analysis, while being just as effective. Do you agree or disagree?

Explain your answer in a paper of no more than 750 words.

Click the Assignment Files tab to submit your assignment.

ACC 561 WEEK 6 WILEYPLUS ASSIGNMENT (EXERCISE 20-3, EX 22-1, BE 23-3, BE 23-4, BE 23-6)

Resource: WileyPLUS

Complete the following Week 6 Assignment in WileyPLUS:

•Exercises: 20-3

•Exercises: 22-1

•Brief Exercise 23-3

•Brief Exercise 23-4

•Brief Exercise 23-6

ACC 561 WEEK 6 WILEYPLUS PRACTICE QUIZ

1.A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to

2.In incremental analysis,

3.Incremental analysis is most useful

4.It costs Ross Co. $24 of variable and $10 of fixed costs to produce one bathroom scale which normally sells for $70. A foreign wholesaler offers to purchase 2,000 scales at $30 each. Ross would incur special shipping costs of $2 per scale if the order were accepted. Ross has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income?

5.Carter, Inc. can make 100 units of a necessary component part with the following costs:

Direct Materials$120,000

Direct Labor 20,000

Variable Overhead60,000

Fixed Overhead40,000

If Carter purchases the component externally, $30,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?

6.Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Mink would sell it for $130. The cost to assemble the product is estimated at $42 per unit and the company believes the market would support a price of $170 on the assembled unit. What decision should Mink make?

7.A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost?

ACC 561 FINAL EXAM GUIDE

1) The statement of cash flows is used for _____.

2) Nonoperating items on the income statement _____.

   A.   are revenues and expenses arising from adjusting entries

   B.   include interest income and expense

   C.   appear only on corporate income statements

   D.   appear on the income statement immediately after gross profit


3) The difference between a single-step and multiple-step income statement is that a single-step income statement _____.

   A.   groups all revenues together and all expenses together, whereas a multiple-step income statement separates certain revenues and expenses from each other and presents subtotals
   B.   calculates net income using one method, whereas a multiple-step income statement calculates net income using two or more methods
   C.   calculates gross profit and operating income, whereas a multiple-step income statement does not
   D.   shows only 1 year's net income, whereas a multiple-step income statement shows multiple years' net income


4) Which one of the following statements is true?

   A.   The statement of cash flows reports the cash receipts but not cash payments of an entity over a period of time.
   B.   Both the statement of cash flows and the income statement determine the net income for a company.
   C.   Transactions affecting the sale and the purchase or production of goods and services are reported in the financing activities section of the statement of cash flows.
   D.   Investing activities in the statement of cash flows include acquiring and selling long-term assets.


5) The _____ accounting convention uses the acquisition cost minus depreciation in valuing an asset on the balance sheet.

   A.   continuity

   B.   conservatism
   C.   cost-benefit

   D.   materiality



6) A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to _____.

   A.   paid-in capital and a credit to retained earnings.
   B.   cash and a credit to common stock.

   C.   retained earnings and a credit to cash.

   D.   cash and a credit to retained income.



7) Which type of organization would most likely have work-in-process inventory?

   A.   A retail store

   B.   A manufacturing company

   C.   A service organization

   D.   A real-estate investment trust



8) _____ is a measure of income or profit divided by the investment required to obtain that income or profit.

   A.   Return on sales

   B.   Capital turnover

   C.   Return on investment

   D.   Residual income



9) The following information is available for the Peter Company:
Sales: $150,000
Invested capital: $156,250
ROI: 10%
The return on sales is _____.

   A.   10.00%

   B.   10.42%

   C.   62.50%

   D.   9.60%



10) The following information is available for the Peter Company:
Sales: $500,000
Invested capital: $312,500
ROI: 10%
The return on sales is _____.

   A.   10.00%

   B.   6.250%

   C.   1.000%

   D.   62.50%

11) Company A’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____.

   A.   75%

   B.   93.75%

   C.   18.75%

   D.   46.88%



12) When the variable costing method is used, fixed factory overhead appears on the income statement as a _____.

   A.   component of cost of goods sold
   B.   fixed expense

   C.   production-volume variance

   D.   component of gross profit



13) In absorption costing, costs are separated into the major categories of _____.

   A.   manufacturing and nonmanufacturing

   B.   manufacturing and fixed

   C.   fixed and variable

   D.   variable and nonmanufacturing



14) _____ is another term for variable costing.

   A.   Full costing

   B.   Direct costing

   C.   Traditional costing

   D.   Absorption costing



15) Budgeted service department cost rates protects the user departments from _____.

   A.   service department efficiencies
   B.   price fluctuations

   C.   service outages

   D.   employee control



16) _____ is an example of the external financial-reporting purpose of the cost management systems.

   A.   The cost of a manufacturing process

   B.   The product mix to optimize profitability

   C.   The amount of inventory that should appear on the balance sheet

   D.   Budget reporting



17) The level of sales at which revenues equal expenses and net income is zero is called the _____.

   A.   margin of safety

   B.   contribution margin

   C.   break-even point

   D.   marginal income point


18) Output measures of both resources and activities are _____.

   A.   cost drivers

   B.   stages of production
   C.   fixed activities

   D.   variable activities



19) The break-even point is where _____.

   A.   total sales revenue equals total cost plus desired profit.

   B.   the contribution margin equals net income plus fixed costs.
   C.   total sales revenue equals total cost.

   D.   the variable cost equals total cost.



20) _____ budgeting is when budgets are formulated with the active participation of all affected employees.

   A.   Financial

   B.   Team

   C.   Participative

   D.   Shared



21) _____ is the logical integration of management accounting tools to gather and report data and to evaluate performance.

   A.   An internal control system

   B.   A quality control system

   C.   A financial-reporting system

   D.   A management control system



22) _____ are components of a master budget.

   A.   A strategic plan and an operating budget

   B.   An operating budget and a capital budget

   C.   A continuous budget and a static budget

   D.   A cash budget and an activity budget



23) An important factor considered by sales forecasters is _____.

   A.   production employee requirements.

   B.   expectations of the board of directors.
   C.   competitors’ activities.

   D.   the desired level of sales.



24) _____ models are mathematical models of the master budget that can react to any set of assumptions about sales, costs, and product mix.

   A.   Variance analysis

   B.   Financial planning

   C.   Accounting

   D.   Futuring



25) Which of the following is an objective of budgeting?

   A.   Budgeting provides benchmarks against which performance can be measured.

   B.   Budgeting provides a fixed fiscal plan that should not be changed during the year.

   C.   Budgeting helps managers build favorable variances into the performance-evaluation process.
   D.   Budgeting is done exclusively by the chief fiscal officer for control purposes.



26) An organization's budget program should be used

   A.   to have power over employees.

   B.   to assign blame to managers that do not meet budgetary goals.

   C.   to help managers plan and control the organization’s performance.

   D.   to help the chief fiscal officer to allocate resources to the favored projects of the executives.


27) The activity-based costing may reveal _________, whereas traditional costing cannot.

   A.   high-volume products are overcosted

   B.   low-volume products are overcosted

   C.   both high- and low-volume products are overcosted

   D.   both high- and low-volume products are undercosted


28) _____ is a method of approximating cost functions.

   A.   Cost-driver analysis

   B.   Transaction analysis

   C.   Product analysis

   D.   Account analysis



29) In relation to a cost function, the term reliability refers to _____.

   A.   whether the costs and activities can be easily observed

   B.   whether the cost function conforms to a given mathematical model
   C.   how well the cost function predicts future costs

   D.   how well the cost function explains past cost behavior



30) One of the simplest methods to measure a linear cost function from past data is the _____.

   A.   regression analysis method

   B.   high–low method

   C.   least squares regression method
   D.   visual-fit method

ACC 561 FINAL EXAM GUIDE (NEW)

1.Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?

2.The group of users of accounting information charged with achieving the goals of the business is its

3.Which of the following financial statements is cornered with the company at a point in time?

4.An income statement

5.The most important information needed to determine if companies can pay their current obligations is the

6.A liquidity ratio measures the

7.The convention of consistency refers to consistent use of accounting principles

8.Horizontal analysis is also known as

9.Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

10.Vertical analysis is a technique that expresses each item in a financial statement

11.Process costing is used when

12.An important feature of a job order cost system is that each job

13.In a process cost system, product costs are summarized:

14.An activity that has a direct cause-effect relationship with the resources consumed is a(n)

15.Activity-based costing

16.A cost which remains constant per unit at various levels of activity is a

17.Fixed costs are $600,000 and the contribution margin per unit is $150. What is the break-even point?

18.The break-even point is where

19.When a company assigns the costs of direct materials, direct labor, and both variable and fixed manufacturing overhead to products, that company is using

20.If a division manager’s compensation is based upon the division’s net income, the manager may decide to meet the net income targets by increasing production when using

21.An unrealistic budget is more likely to result when it

22.A major element in budgetary control is

23.The purpose of the sales budget report is to

24.The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called

25.Variance reports are

26.Internal reports that review the actual impact of decisions are prepared by

27.The process of evaluating financial data that change under alternative courses of action is called

28.Seasons Manufacturing manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

29.Carter, Inc. can make 100 units of a necessary component part with the following costs:

Direct Materials$120,000

Direct Labor20,000

Variable Overhead60,000

Fixed Overhead40,000

If Carter can purchase the component externally for $220,000 and only $10,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

30.A company has a process that results in 15,000 pounds of Product A that can be sold for $16 per pound. An alternative would be to process Product A further at a cost of $200,000 and then sell it for $28 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?

ACC 561 FINAL GUIDE 2

ACC 561 Final Guide Set 2

1) According to the Financial Executives Institute, one function of controllership is _____.

2) Performance reports _____.

3) Budgets _____.

4) Ethical accountants are important to society because _____.

5) According to the Institute of Management Accountants’ Statement of Ethical Professional Practice, the standard of competence includes:

6) According to the Institute of Management Accountants’ Statement of Ethical Professional Practice, the standard of objectivity includes _____.

7) Which scorecard function is associated with making non-routine decisions?

8) _____ is the field of accounting that develops information for external decision makers such as stockholders, suppliers, banks, and government regulatory agencies.

9) Launching a new product line is an example of _____.

10) The _____ is also called the statement of financial position.

11) The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when _____.

12) The _____ is not one of the three major financial statements.

13) The use of acquisition cost less depreciation in valuing an asset on the balance sheet is the logical result of the _____ accounting convention.

14) The accounting convention of _____ guides the relative sophistication of the accounting system.

15) The accounting convention of _____ means selecting the method of measurement that yields the gloomiest immediate results.

16) The statement of cash flows is used for all of the following except_____.

17) The difference between a single and multiple step income statement is that a single step income statement_____.

18) Sylvester Company requires clients to pay in advance for legal services. One such client made a $4,000 payment on May 1, and Sylvester Company recorded this transaction in the appropriate liability account. As of May 20, the legal services that the client requested had been completed. The May 20 accounting entry will:

19) Output measures of both resources and activities are _____.

20) Which of the following is not a cost driver of customer services costs?

21) Which value chain function would include the cost of computer-aided design equipment and cost to develop the prototype of a product?

22) Walnut Corporation sells desks at $480 per desk. The costs associated with each desk are as follows:

Direct materials

Total fixed costs for the period are $456,840. The contribution margin per desk is _____.

23) Hug Me Company produces dolls. Each doll sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor. If total fixed costs are $435,000, then the break even volume in dollars is _____.

24) If the sales price per unit is $100, the unit variable cost is $75, and total fixed costs are $150,000, then the break even volume in dollar sales rounded to the nearest whole dollar is _____.

25) _____ of approximating cost functions does not involve the analysis of past costs.

26) In relation to a cost function, the term reliability means_____.

27) The _____ method of measuring cost functions is the least reliable.

28) _____ is a name for a system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other cost objects that caused that activity.

29) The change from traditional costing to activity-based costing may reveal that _____.

30) _____ is an example of the external financial reporting purpose of the cost management systems.

31) _____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix.

32) Budgets generate negative feelings if they are _____.

38) The master budget quantifies targets for all of the following except _____.

39) Differences between the static budget and the flexible budget are due to _____.

40) Costs are allocated for all the following purposes except to _____.

41) The use of budgeted service department cost rates protects using departments from _____.

42) Cost allocation base refers to the _____.

43) Murphy Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on

square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year:

46) In absorption costing, costs are separated into the major categories of_____.

47) _____ is another term for variable costing.

48) When the variable costing method is used, fixed factory overhead appears on the income statement as a_____.

49) _____ is the first step in designing a management control system.

50) _____ is (are) the most basic component of a management control system.

51) Identify which of the following is not a characteristic of a management control system.

52) The following information is available for the Peter Company:

Sales $500,000

53) _____ is a measure of income or profit divided by the investment required to obtain that income or profit. A. Return on investment

54) The following information is available for the Peter Company:

Sales $150,000

ACC 561 FINAL GUIDE 3

1) According to the Financial Executives Institute, one function of the treasurer is _____

2) Budgets _____.

3) Department performance reports can be used to help department heads determine _____.

4) Ethical accountants are important to society because _____.

5) Below is a statement from the Institute of Management Accountants’ Statement of Ethical Professional Practice. “Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so.” It is an

7) _____ refers to accounting information developed for managers within an organization.

8) _____ is the field of accounting that develops information for external decision makers such as stockholders, suppliers, banks, and government regulatory agencies.

9) Launching a new product line is an example of _____

10) _____ would not appear on the financial statements for a sole proprietorship.

11) The _____ is also called the statement of financial position.

12) The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when _____

13) The accounting convention of _____ guides the relative sophistication of the accounting system.

14) The accounting convention of _____ permits a company to immediately expense assets (such as a garbage can) with small values and long useful lives.

15) Mr. Bryant invested $50,000 cash in a new corporation. The new corporation will record this transaction with a debit to_____

16) The difference between a single and multiple step income statement is that a single step income statement_____

17) The Rebecca Company acquired merchandise inventory costing $10,000 on September 1. The company will not pay for the inventory until October 1. This transaction will affect the Rebecca Company by increasing the Merchandise Inventory account by $10,000 and _____.

18) Limited liability means that_____.

19) Which value chain function would include depreciation on transportation cost?

20) Number of engineering hours is a likely cost driver for which value chain function?