Exam 1 Practice - Practice Exam 1 (Chapters 1, 2, 5, 6, 7...

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Practice Exam 1 (Chapters 1, 2, 5, 6, 7 and 9) These practice questions do not cover every topic that may appear on the actual exam, but they should be a part of your exam preparation. You should also study your class notes, assignments, practice problems as well as the assigned reading from the textbook. 01. If a company reported accounts receivable in its financial statements, the company would be refering to A. amounts due from customers to be paid to the company. B. amounts to be paid by the company to its creditors. C. amounts to be collected from creditors by the company. D. amounts to be paid by the compamy to its customers. 02. King Korn, Inc sells a biodegradable plastic made out of corn products and has predicted the following sales for the first four months of the current year: Jan. Feb. March April Sales in units 1,800 1,600 2,100 1,600 Ending inventory for each month should be 20% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February? A. 1700 B. 2000 C. 1760 D. 1500 03. Which of the following statements is true? A. Costs that cannot be classified as direct material or direct labor are classified as period costs. B. The total cost of a finished product generally contains equal amounts of material, labor, and manufacturing overhead costs. C. A factory manager’s salary would be classified as a period cost. D. Reports prepared in managerial accounting are general-purpose reports, whereas reports prepared in financial accounting are usually special-purpose reports. E. None of the above are true. 04. Which of the following statements is true? A. Decreases in the level of activity will cause total variable and total fixed costs to decrease. B. The break-even point is the point at which total sales equals total contribution margin. C.
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Exam 1 Practice - Practice Exam 1 (Chapters 1, 2, 5, 6, 7...

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