AC202Final_Exam_F2T_10_Review

AC202Final_Exam_F2T_10_Review - AC 202 Principles of...

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AC 202 Principles of Accounting Name__________________________________ Park University Final Exam A Chapters 13-24 Multiple Choice Questions (2 Points each) Select the ONE, BEST Answer 1. Buying stock in a corporation is attractive to investors because: - Stockholders are not liable for the corporations acts and debts - Stocks are transferred easily - Life of corporation is unlimited - Stockholders are not corporate agents . 2. The carrying value of a long-term note payable: - (book value) equals its face value minus any unamoritized discount or plus any unamoritized premium - Computed as the preset value of all remaining payments, discounted using the market rate at issuance 3. Current assets divided by current liabilities is the: Current Ratio 4. Goods a company acquires to use in making products are called: - Raw materials inventory 5. If a company applies overhead to production with a predetermined rate, a credit balance in the Factory Overhead account at the end of the period means that: 6. The contribution margin ratio: - The percent of a units selling price that exceeds total unit variable cost, is also useful for business decisions. - Percent of each sales dollar that remains after deducting the total unit variable cost. 1
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Contribution margin per unit/sales price per unit 7. A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to be produced, the merchandise or materials to be purchased, the expense to be incurred, the
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AC202Final_Exam_F2T_10_Review - AC 202 Principles of...

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