ACCT 202 Exam 3 Sample Questions

ACCT 202 Exam 3 Sample Questions - Accounting 202 SAMPLE...

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Accounting 202 SAMPLE TEST QUESTIONS – EXAM 3 11/2011 PLEASE NOTE: Some of the following materials have been adapted from Managerial Accounting , 2e, Braun, Tietz, & Harrison Pearson Prentice-Hall, 2010 and its accompanying supplements. THESE SAMPLE TEST QUESTIONS ARE NOT THE SAME AS THE QUESTIONS THAT WILL APPEAR ON YOUR TEST. THEY DO NOT NECESSARILY REFLECT EITHER THE COVERAGE OF TOPICS OR THE LEVEL OF DIFFICULTY OF THE EXAM ITSELF. Chapter 9 1. The ____________ budget is a major part of the master budget and focuses on the income statement and its supporting schedules. A. operating B. cash C. capital expenditures D. financial 2. Which of following budgets is part of the financial budgets? A. Production budget B. Budgeted balance sheet C. Budgeted income statement D. Sales budget 3. Stiller Company expects cash sales for July of $15,000, and a 20% monthly increase during August and September. Credit sales of $10,000 in July should be followed by 25% increases during August and September. What are budgeted cash sales and budgeted credit sales for September respectively? A. $18,000 and $12,500 B. $21,600 and $15,376 C. $23,438 and $14,400 D. $18,750 and $12,000 4. Kayla’s Toys budgeted sales of $300,000 for the month of November and cost of goods sold equal of 70% of sales. Beginning inventory for November was $50,000 and ending inventory for November is estimated at $55,000. How much are the budgeted purchases for November? A. $205,000 B. $ 95,000 C. $215,000 D. $105,000 5. The Teddy Bear Company manufactures stuffed bears. The number of bears to be produced in the upcoming three months follows: Number of teddy bears to be produced in July 12,000 Number of teddy bears to be produced in August 15,000 Number of teddy bears to be produced in September 10,000 Each bear requires 2 pounds of the plastic pellets used as stuffing. The company has a policy that the ending inventory of plastic pellets each month must be equal to 20% of the following month’s expected production needs. How many pounds of plastic pellets does The Teddy Bear Company need to purchase in August? A. 20,000 B. 24,000 C. 28,000 D. 40,000
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6. Latimer Corporation collects 35% of a month’s sales in the month of sale, 50% in the month following sale, and 10% in the second month following sale. The company has found that 5% of their sales are uncollectible. Budgeted sales for the upcoming four months are: August budgeted sales $300,000 September budgeted sales $280,000 October budgeted sales $330,000 November budgeted sales $260,000 The amount of cash that will be collected in November is budgeted to be: A. $ 91,000. B. $284,000. C. $285,500. D. $289,000. 7. Newton Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be $12,000. Budgeted cash receipts are $84,000, while budgeted cash disbursements are $72,000. Newton Company wants to have an ending cash balance of $40,000. The excess (deficiency) of cash available over disbursements
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This note was uploaded on 03/18/2012 for the course ACCT 202 taught by Professor Ruhe during the Fall '08 term at WVU.

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ACCT 202 Exam 3 Sample Questions - Accounting 202 SAMPLE...

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