Accounting Final Examination Study Guide

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ACC/561 Final Examination Study GuideThis study guide will prepare you for the Final Examination you will complete in the final week. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.

Week One: Financial Reporting and Analysis

Objective: Differentiate between financial statements.

1. The _____ is also called the statement of financial position. a. income statement b. balance sheet c. statement of retained earnings d. statement of cash flows

Objective: Differentiate between financial statements.

2. _____ is the field of accounting that develops information for external
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The following information has been gathered for the current year:

Maintenance Personnel Mixing Finishing Direct department costs $126,000 $84,000 $105,000 $175,000 Square footage 800 400 1,600 1,200 Number of employees 8 12 24 32

If the step-down method of allocating costs is used and the Personnel Department is allocated first, then the amount of overhead allocated from Personnel to Finishing is _____. a. $42,000 b. $72,000 c. $31,500 d. $105,000

Objective: Differentiate between various costing methods.

15. Murphy Company has two service departments, Maintenance and Personnel, and two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year:

Maintenance Personnel Mixing Finishing Direct department costs $126,000 $84,000 $105,000 $175,000 Square footage 800 400 1,600 1,200 Number of employees 8 12 24 32

If the step-down method of allocating costs is used and the Personnel Department is allocated first, then the amount of overhead allocated from Personnel to Mixing is _____. a. $31,500 b. $58,500 c. $63,000 d. $78,000

Objective: Make management decisions using costing methods.

16. _____ is used for external reporting. a. Absorption costing b. Variable

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