ACC 497 Final Exam - 1 Expenditures should be budgeted by...

This preview shows page 1 - 5 out of 37 pages.

ACC 497 Final Exam

1 Expenditures should be budgeted by character. An example of a character classification is current expenditures. salaries public safety. police department.
2 A report on internal control effectiveness by management of public companies is required by which of the following:
3 For a not-for-profit hospital, which of the following financial statements is required?
Statement of revenues 4 In computing the ordinary income of a partnership, a deduction is allowed for
5 In traditional costing systems, overhead is generally applied based on direct labor machine hours direct material dollars units of production
6 Which of the following statements is true?
Section 351 was enacted to allow taxpayers to incorporate without incurring adverse tax consequences. 7 How can long-term assets best be tested for ownership?
Reviewing the ledger to ensure the item is listed Reviewing prior year workpapers Inquiring with management 8 The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy decision, incremental costs are $1 per unit differential costs are $2 per unit incremental revenues are $2 per unit net relevant costs are $1 per unit 9 If standard costs are incorporated into the accounting system it can eliminate the need for the budgeting process the accounting system will produce information which is less relevant than the historical cost accounting system
10 Statement on Quality Control Standards No. 2 identifies certain quality control elements that should be considered when performing which types of services?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture