Accounting II Graded Exam #4

# Accounting II Graded Exam #4 - My...

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Question Correct 6.00 points out of 6.00 Question Correct 6.00 points out of 6.00 The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet. Select one: True 4 False The correct answer is 'True'. A cost that changes with volume, but not at a constant rate, is called a: Select one: a. Variable cost. b. Curvilinear cost. 4 c. Step-wise variable cost. d. Fixed cost. e. Differential cost. The correct answer is: Curvilinear cost.

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Question Correct 6.00 points out of 6.00 Question Correct 6.00 points out of 6.00 A company is planning to purchase a machine that will cost \$24,000, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. Sales ........................................................... . Costs: I'v [a nu l ii ct ur i n g ............................................ . Depreciation on m a c hi n e ............................ Se 11 in g and adm i ni stra t i v e e x 1 let 1 ses ........... Income bcJo r c 1,ax(,;s .............................. . .... . Income tax ( 50o/o ) ........................................ Net inc o m e ................................................. . What is the payback period for this machine? Select one: a. 24 years. b.12 years. c. 6 years. d. 4 years. 4 e. 1 year. The correct answer is: 4 years. \$52,000 4 , 00 0 30,000 \$90,000 (86.()00) \$4,000 { 2.000) \$ 2.000 As the level of output activity increases, the variable cost per unit remains constant. Select one: True 4 False The correct answer is 'True'.
Question Correct 6.00 points out of 6.00 Question Correct 6.00 points out of 6.00 Question Correct 6.00 points out of 6.00 A minimum acceptable rate of return for an investment decision is called the: Select one: a. Internal rate of return. b. Average rate of return. c. Hurdle rate of return. ../ d. Maximum rate of return.

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• Fall '14
• Accounting, ........., Internal rate of return

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