Acc/561 Sample Final Examination
ACC/561 Sample Final Examination
Week One: Decision Making
Objective: Explain the role of budgets and performance reports in the management decision-making process.
1. The Hola Company held a Christmas party. The company expected attendance of 100 persons and prepared the following budget:
Hotel room rental $600 Food 500 Entertainment 800 Decorations 300
Totals $2,200
After all bills for the party were paid, the total came to $2,315. Details are $575 for hotel room rental, $640 for food, $750 for entertainment, and $350 for decorations. 100 persons attended the party. What is the main reason for the unfavorable total budget variance? a. Hotel room rental is the main reason. b. Food is the main reason. c. Entertainment is the main reason. d. Decorations are the main reason.
Objective: Explain the role of budgets and performance reports in the management decision-making process.
2. Below is a statement from the Institute of Management Accountants’ Statement of Ethical Professional Practice.
“Communicate information fairly and objectively.”
It is an example of __________.
a. competence
b. confidentiality
c. integrity
d. objectivity
Objective: Evaluate relevant accounting information for business decision making.
3. All of the following companies had significantly faulty accounting information in the past 10 years except __________.
a. Enron
b. Tyco
c. Xerox®
d. Microsoft®
Week Two: Financial Statements
Objective: Apply the concepts, techniques, and conventions of basic financial accounting.
4. Upland Company purchased $4,000 of inventory, paying cash for 25% of the purchase, with the remainder on account. Upland Company should debit__________.
a. Cash for $1,000, debit Accounts Payable for $3,000, and credit Inventory for $4,000
b. Cash for $1,000, debit Note Payable for $3,000, and credit Inventory for $4,000
c.
Week One: Decision Making
Objective: Explain the role of budgets and performance reports in the management decision-making process.
1. The Hola Company held a Christmas party. The company expected attendance of 100 persons and prepared the following budget:
Hotel room rental $600 Food 500 Entertainment 800 Decorations 300
Totals $2,200
After all bills for the party were paid, the total came to $2,315. Details are $575 for hotel room rental, $640 for food, $750 for entertainment, and $350 for decorations. 100 persons attended the party. What is the main reason for the unfavorable total budget variance? a. Hotel room rental is the main reason. b. Food is the main reason. c. Entertainment is the main reason. d. Decorations are the main reason.
Objective: Explain the role of budgets and performance reports in the management decision-making process.
2. Below is a statement from the Institute of Management Accountants’ Statement of Ethical Professional Practice.
“Communicate information fairly and objectively.”
It is an example of __________.
a. competence
b. confidentiality
c. integrity
d. objectivity
Objective: Evaluate relevant accounting information for business decision making.
3. All of the following companies had significantly faulty accounting information in the past 10 years except __________.
a. Enron
b. Tyco
c. Xerox®
d. Microsoft®
Week Two: Financial Statements
Objective: Apply the concepts, techniques, and conventions of basic financial accounting.
4. Upland Company purchased $4,000 of inventory, paying cash for 25% of the purchase, with the remainder on account. Upland Company should debit__________.
a. Cash for $1,000, debit Accounts Payable for $3,000, and credit Inventory for $4,000
b. Cash for $1,000, debit Note Payable for $3,000, and credit Inventory for $4,000
c.