What is the cash paid for income taxes

Assignment Help Accounting Basics

Reference no: EM13787337

1. What business industry can Manufacturing accounting methods be used in?

A. Manufacturing and merchandising

B. Manufacturing only

C. Manufacturing, service, merchandising

D. Manufacturing and service

2 Why would management consider a special pricing order?

A. It is additional revenue for an item sold above normal sales price

B. It is additional revenue for an item sold below the normal sales price

C. The special order will generate future orders to help reduce incremental costs

D. The special order will generate future orders at premium prices

2. A company would like to purchase a company vehicle for delivery. Which of the following costs associated with the purchase would be considered irrelevant?

A. Sales tax

B. Insurance premium

C. Vehicle registration

D. Cost of the vehicle costing

3. The White company produces t-shirts. Based on the activity-based (ABC) method, which of the following items is a cost driver for the company?

A. The number of t-shirt orders received.

B. The quality inspections of the t-shirts

C. The shipping of merchandise to customer

D. The inquiries from customers service.

4. Using the direct method, if income taxes are recorded as $50,000 and the net increase from year 2012 to 2013 is -500 for income taxes payable, what is the cash paid for income taxes?

A. $500

B. $50,000

C. $50,500

D. $49,500

5. A uniform company notices it is losing out on bids to provide uniforms to a restaurant chain. The chain`s bid was barely above the cost of manufacturing the uniforms. The managers implement activity-based costing to find out where their untraceable costs are. Where will they determine the untraceable costs are coming from?

A. Direct labor

B. Job order costs

C. Manufacturing overhead

D. Direct materials

6. James knows that 1000 widget are needed in the upcoming job order. What type of document does he need to fill out in order to put the widgets into production?

A. Materials requisition

B. Direct materials requisition

C. Subsidiary ledger

D. Job cost order

7. When computing cost of goods sold, should manufacturing companies add total purchases?

A. Yes, total purchases are included in merchandising and manufacturing cost

B. No, total purchases are not included in cost of goods sold

C. No, total purchases are included in merchandising cost of goods sold

D. Yes, total purchases are included in manufacturing cost of goods

8. A company wants to report the acquisition of equipment on the budgeted statement of cash flows. How should this be reported?

A. Outflows in investing activities

B. Asset inflow in investing activities

C. Asset inflow in operating activities

D. Outflow in operating activities

9. Managers must often decide to sell a product as it currently is or process it further. What is one thing to consider before making this decision?

A. The scenario with the highest producing revenue

B. The scenario with the lowest contribution margin

C. The scenario with the highest asset turnover

D. The scenario with the lowest amount of supplies utilized

10. F company would like to apply the activity based costing (ABC) method to it`s existing production. Why would F company want to use this method over the traditional costing method?

A. To use a single allocation rate

B. To determine which products are most profitable

C. To eliminate the cost drivers for specific products

D. To assess the cost allocation base

11. Which of the following is an example of an indirect manufacturing cost?

A. Depreciation on a manufacturing plant`s building

B. Depreciation on a truck that delivers finished goods

C. The insurance expense for sales department vehicles

D. The rent expense for the manufacturing plant`s building

12. Which of the following corrective actions might be taken if target performances are not being met at the sub-unit level?

A. Consolidation of the sub-unit into another sub unit

B. Replacement of the sub-unit manager

C. Top management eliminating the sub-unit

D. Top management taking control

Reference no: EM13787337

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