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The group of users of accounting information charged with achieving the goals of the business, is which of the following?

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1. (TCO 1) The group of users of accounting information charged with achieving the goals of the business, is which of the following? (Points : 4)
Auditors
Investors
Managers
Creditors
2. (TCO 1) The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers, is called which of the following? (Points : 4)
account payable
account receivable
revenue
expense
3. (TCO 1) If the retained earnings account increases from the beginning of the year to the end of the year, then which of the following will occur? (Points : 4)
net income is less than dividends
a net loss is less than dividends
additional investments are less than net losses
net income is greater than dividends
4. (TCO 4) For 2010, Fielder Corporation reported net income of $30,000; net sales $400,000; and average shares outstanding of 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? (Points : 4)
$4.66
$0.20
$66.67
$5.00
5. (TCO 4) Mitchell Corporation has current assets of $1 million and current liabilities of $750,000. If they pay $250,000 of their accounts payable, what will their new current ratio be? (Points : 4)
1.25:1
2.0:1
2.0:1
1.5:1
6. (TCO 4) Suppose that Drake Corporation produced and sold 5,000 laptop computers during 2010. It reported $270,000 cash provided by operating activities. In order to maintain production at 5,200 laptops, Drake invested in $8,000 in equipment. Drake paid $2,000 in dividends. What is Drake s free cash flow? (Points : 4)
$262,000
$260,000
$268,000
$278,000
7. (TCO 2) If a company issues common stock for $25,000, and uses $20,000 of the cash to purchase a truck, which of the following will occur? (Points : 4)
assets will be increased by $5,000
equity will be reduced by $25,000
assets will be increased by $25,000
assets will be unchanged
8. (TCO 2) During February 2010, its first month of operations, the owner of Schwenn Enterprises invested cash of $25,000. Schwenn had cash sales of $4,000 and paid expenses of $7,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28? (Points : 4)
$3,000 credit
$22,000 debit
$29,000 debit
$18,000 credit
9. (TCO 3) Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them does which of the following? (Points : 4)
increases the potential for errors and fraud
decreases the potential for errors and fraud
is an example of good internal control
is a good example of safeguarding the company s assets.
10. (TCO 3) If a check correctly written and paid by the bank for $626 is incorrectly recorded on the company s books for $662, the appropriate treatment on the bank reconciliation would be to do which of the following? (Points : 4)
add $36 to the book s balance
subtract $36 from the book s balance
deduct $36 from the bank s balance
deduct $626 from the book s balance
11. (TCO 11) Utley Manufacturing Company reported the following year end information: beginning work in process inventory, $180,000; cost of goods manufactured, $516,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Utley Manufacturing Company s cost of goods sold for the year is which of the following? (Points : 4)
$504,000
$528,000
$476,000
$252,000
12. (TCO 11) Hollern Combines, Inc. has $10,000 of ending finished goods inventory as of December 31, 2008. If beginning finished goods inventory was $5,000 and cost of goods sold was $20,000, how much would Hollern report for cost of goods manufactured? (Points : 4)
$22,500
$5,000
$25,000
$15,000
13. (TCO 5) A fixed cost is a cost that does which of the following? (Points : 4)
varies in total with changes in the level of activity
remains constant per unit with changes in the level of activity
varies inversely in total with changes in the level of activity
remains constant in total with changes in the level of activity
14. (TCO 5) To which function of management is CVP analysis most applicable? (Points : 4)
Planning
Motivating
Directing
Controlling
15. (TCO 5) Madison Company s variable costs are 25% of sales. Its selling price is $150 per unit. If Weed sells one unit more than break even units, how much will profit increase? (Points : 4)
$37.50
$112.50
$32.50
$380.00