1. A coffee company has purchasing operations in New York, production facilities in three roasting plants scattered throughout the Midwest and marketing functions in Texas.
If the company want a low cost strategy, what kind of responsibility center is appropriate for the roasting plants?
C. Expense (cost)
2. Economic valve added (EVA) is defined as NOPAT
A. Having less cost of debt
B. Divided by total assets
C. Having less cost of debt and equity
D. Divided by shareholders' equity
3. A company began the current year with $300,000 in total assets and 240,000 in total stockholder's equity. During the year, the company earned $60,000 distributed $10,000 as dividend. Assets at the end of the year were $400,000. What were the liabilities?
4.. Which statement is true about the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB )?
A. The SEC regulates quarterly reports, while the FASB regulates annual reports
B. The SEC concentrates more on disclosure regulation, while the FASB concentrates more on accounting recognition and measured issues
C. Both the SEC and the FASB are government entities
D. The SEC regulates government entities, while the FASB regulates business corporations
5. A company has the following account balances as of December 31, 2001.
Accounts payable 40,000
Discount on bonds issued 20,000
Accounts Receivable 30,000
What were the total assets?
6. A company's current assets increased by $150, and current liabilities decreased by $70. Net working capital?
A. Increased by $220
B. Increased by $80
C. Decreased by $80
D. Decreased by $220
7. A company repurchased 1,000 shares of it own $10 par common stock for $30,000. It has not yet paid the $30,000. What was the effect on the financial statement?
A. Expenses increased by $30,000
B. Investments increased by $30,000
C. Treasury stock increased by $30,000
D. Treasury stock decreased by $30,000
8. A company is authorized to issue 10,000 shares of $10 par common stock. During its first year of operation, it issued one-half of the stock for $20 per share earned, 15,000 on profits, and declared (but did not pay) dividends of 5,000. What is the company's book value per share at year end?
9. A company has the following inventory info.
Beginning inventory 100 units @ 120 per unit
Purchase #1 40 units @ 25 per unit
Purchase #2 60 units @ 30 per unit
Units sold 150 units
What is the cost assigned to cost of goods sold using first in and first out?
10. A small bookstore has total revenues of 100,000, gross profit margin of 20% and total operating expenses of 9,000. What is the bookstore's profit margin?
11. A company manufactures three products: PD1, PD2, and PD3. It's plant capacity is 1,200,000 machine hrs. Demand is expected to be 200,000 for each product for next year.
PD1 PD2 PD3
Sale price $10 $15 $14
Variable cost $8 $9 $12
Machine hrs. 2 3 4
12. Total contributed capital of a corporation is most likely to be equal to?
A. The excess of stockholders equity over par value
B. The excess of assets minus liabilities minus retained earning
C. Total earnings less dividends since the stats of the business
D. Cash on hand available for use