Exam 2 Practice - Practice Exam 2 These practice questions...

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Practice Exam 2 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. Which of the following is not a benefit of following a well-designed budgeting process? A. Improved decision-making processes. B. Improved performance evaluations. C. Improved coordination of business activities. D. Assurance of future profits. E. All of the above are benefits of effective budgeting. 02. Debits A. increase assets B. decrease assets C. increase liabilities D. both A and C 03. Which of the following accounts is closed at the end of the year? A. Cash B. Revenue C. Retained earnings D. Accounts payable 04. When a company receives a utility bill that is not due until next month, it should A. debit utilities expense and credit accounts payable. B. debit utilities expense and credit accounts receivable. C. debit accounts payable and credit utilities expense. D. debit utilities expense and credit cash E. make no entry until the bill is paid. 05. King Korn, Inc purchases biodegradable plastic boxes for $50 per unit 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 at December 31 st is 360 units and for each month after that is expected to be 20% of the next month's sales. How many units should be purchased in February? A. 1,700 B. 2,000 C. 1,760 D. 1,500 06. For a personal budget, it’s helpful to categorize your expenses into A. Variable and fixed expenses B. Committed and discretionary expenses C. Necessity and luxury expenses D. Low and High amount expenses E. Personal and business expenses
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Exam 2 Practice - Practice Exam 2 These practice questions...

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