Reference no: EM132558438

Question 1. The appropriate section in the statement of cash flows for reporting the purchase of a delivery truck is:

a. Schedule of noncash investing or financing activity.

b. Operating activities.

c. Financing activities.

d. Investing activities.

Question 2. At the end of the fiscal year, if a small balance exists in the FOH account, it should be closed to:

a. Miscellaneous Expense

b. Finished Goods

c. WIP

d. COGS

e. None of these

Question 3. What is the journal entry to record the transfer of completed goods to finished goods (FG)?

Select one:

a. Debit WIP, Credit FG

b. Debit COGS, Credit FG

c. None of these

d. Debit WIP, Credit COGS

e. Debit FG, Credit WIP

Question 4. A factor that causes the cost of an activity to increase or decrease is a:

a. Contribution factor.

b. Direct factor.

c. Indirect factor.

d. Product cost.

e. Cost driver.

Question 5. What is the journal entry to record the application of Factory Overhead (FOH) into production?

a. Debit FOH, Credit WIP

b. Debit COGS, Credit FOH

c. Debit WIP, Credit FOH

d. Debit Finished Goods, Credit WIP

e. None of these

Question 6. A fixed cost:

a. Requires the future outlay of cash and is relevant for future decision making.

b. Has already been incurred and cannot be avoided so it is irrelevant for decision making.

c. Is directly traceable to a cost object.

d. Changes with changes in the volume of activity within the relevant range..

e. Does not change with changes in the volume of activity within the relevant range.