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MULTIPLE CHOICE ANSWERS

By: Educator on Feb 22nd, 2014  |  syntax: None  |  size: 4.27 KB  |  views: 67  |  expires: Never
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  1. VISIT THE BELOW LINK TO GET THE ANSWERS
  2.  
  3. http://questionssolved.com/multiple-choice-answers-115/
  4.  
  5. 1. Committing a fraud because the employee feels that it will be easy to do is indicative of which part of the fraud triangle?
  6. A. Rationalization
  7. B. Perceived pressure
  8. C. Perceived opportunity
  9. D. Realization
  10. 2. Goods available for sale are $350,000; beginning inventory is $24,000; ending inventory is $32,000; and cost of goods sold is $275,000. The inventory turnover is
  11. A. 11.46.
  12. B. 8.59.
  13. C. 12.50.
  14. D. 9.82.
  15.  
  16. 3. Besides using an overstatement of earnings to inflate a company’s stock price, overstating earnings may also be used to
  17. A. avoid paying raises to employees.
  18. B. avoid paying dividends to stockholders.
  19. C. ensure larger bonuses to upper management at year-end.
  20. D. deflate the amount of taxes the corporation pays.
  21.  
  22. 4. Meranda Company reports the following inventory information:
  23. What is the total value of the merchandise under LCM (lower-of-cost or market)?
  24. Inventory
  25. Number
  26. Inventory
  27. Quantity Unit Cost
  28. Unit Market
  29. Value
  30. APD 3838 325 $56.78 $55.32
  31. CPZ 1212 506 $92.31 $92.78
  32. IXL 4039 817 $77.89 $79.31
  33. EOD 3902 382 $19.38 $19.02
  34. DKS 4823 626 $33.46 $30.74
  35. A. $154,832.90
  36. B. $156,230.80
  37. C. $157,147.60
  38. D. $158,545.60
  39.  
  40. 5. If current assets decrease and current liabilities increase, the current ratio
  41. A. decreases.
  42. B. remains the same.
  43. C. increases.
  44. D. will change based on the change in total assets.
  45.  
  46. 6. Which of the following would probably not cause inventory shrinkage?
  47. A. Correct counting of all inventory
  48. B. Spills of items
  49. C. Employee theft
  50. D. Spoilage of items
  51.  
  52. 7. Which of the following would probably not need to be disclosed in a footnote?
  53. A. A change in depreciation method
  54. B. A material change in estimated shrinkage
  55. C. Change of inventory methods
  56. D. A 10% increase in sales
  57.  
  58. 8. Which of the following may not limit the effectiveness of internal control systems in an organization?
  59. A. Poorly designed controls
  60. B. Understanding of policies and procedures
  61. C. Costs not worth benefits
  62. D. Duties not segregated
  63.  
  64. 9. Isaiah Sporting Goods uses the perpetual average cost method of determining inventory costs. Below is the inventory record for Product C124:
  65. What is the average cost per unit after the receipt of the May 17 inventory (rounded to the nearest cent)?
  66. Date Received Sold Cost/Unit Balance
  67. April 22 534 $6.58 $3,513.72
  68. May 17 433 $6.70 $2,901.10
  69. June 21 389 $6.76 $2,629.64
  70. August 2 436 $6.44 $2,807.84
  71. A. $6.63
  72. B. $6.00
  73. C. $7.40
  74. D. $6.55
  75.  
  76. 10. Goods such as milk, bread, and cheese would probably be costed using the _______ method of
  77. inventory costing.
  78. A. LIFO
  79. B. specific-identification
  80. C. average
  81. D. FIFO
  82.  
  83. 11. A drawback to using _______ when inventory costs are rising is that the company reports lower net
  84. income.
  85. A. FIFO
  86. B. LIFO
  87. C. average costing
  88. D. specific-identification costing
  89.  
  90. 12. The balance sheet format that lists assets above liabilities is the _______ form.
  91. A. alphabetical
  92. B. account
  93. C. report
  94. D. liquidity
  95.  
  96. 13. One of the biggest factors in implementing SOX was
  97. A. reviewing the financial reports.
  98. B. establishing internal control procedures.
  99. C. disclosing deficiencies in internal controls.
  100. D. the cost of implementing the system.
  101.  
  102. 14. To pay the least income tax possible in periods of rising inventory costs, the company should use which
  103. inventory costing method?
  104. A. Average cost
  105. B. FIFO
  106. C. LIFO
  107. D. Specific identification
  108.  
  109. 15. Which items may not limit the effectiveness of internal control systems in an organization?
  110. A. Properly designed controls
  111. B. Costs not worth benefits
  112. C. Overriding controls
  113. D. Collusion
  114.  
  115. 16. A company’s current ratio increased from 1.23 to 1.45. What does this mean?
  116. A. This means that current assets decreased and current liabilities decreased.
  117. B. There isn’t enough information to explain the increase.
  118. C. This means that current assets increased and current liabilities increased.
  119. D. This means that current assets increased and current liabilities decreased.
  120.  
  121. 17. A company’s gross profit percentage decreases from 58% to 51%. What does this mean?
  122. A. This means that net income will be higher.
  123. B. This means that net income will be lower.
  124. C. We can’t determine anything definite from the information given.
  125. D. This means that there will be a net loss.
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