Accounting – Managerial

Answer sheet

3 points each

1.

21.

2.

22.

3.

23.

4.

24.

5.

25.

6.

26.

7.

27.

8.

28.

9.

29.

10.

30.

11.

31.

12.

32.

13.

33.

14.

34.

15.

35.

16.

17.

18.

19.

20.

********Good Luck*********

INSTRUCTIONS: A list of sections of a balance sheet and a list of items are presented below. Indicate the section of the balance sheet in which each item should appear by selecting the appropriate letter in the Answers sheet.

BALANCE SHEET SECTIONS

A. Current Assets D. Deferred Expenses G. Long-term Liabilities

B. Current Liabilities E. Intangible Assets H. Property, Plant, and

Equipment

C. Deferred Credits F. Investments I. Stockholders’ Equity

ITEMS APPEARING IN BALANCE SHEET

Items

0. Land ……………………………………………………………………………………………………….

H

1. Note Payable, due in 30 months ……………………………………………………………

2. Goodwill …………………………………………………………………………………………………

3. Accrued Interest Payable ……………………………………………………………………….

4. Discount on Bonds Payable …………………………………………………………………..

5. Accounts Payable …………………………………………………………………………………..

6. Bonds Payable, due in 15 years …………………………………………………………….

7. Premium on Bonds Payable ………………………………………………………………….

8. Inventory …………………………………………………………………………………………………

INSTRUCTIONS: Selected changes in various accounts during a fiscal year are described below. A list of sections of the statement of cash flows (direct or indirect method) is presented below. Indicate the section of the cash flow by selecting the appropriate letter in the Answers sheet.

A. Operating Activities C. Financing Activities

B. Investing Activities D. Not Reported

Section of Statement of Cash Flows

(A)

Operating

Activities

(B)

Investing

Activities

(C)

Financing

Activities

(D)

Not

Reported

CHANGES IN ACCOUNTS

0. Merchandise Inventory—net increase …………………………….

A

9. Retained Earnings—debit for stock dividends distributed

10. Common Stock—credit for issuance at par for cash ………

11. Bonds Payable—debit for redemption of bonds …………….

12. Prepaid Insurance—net increase ……………………………………

13. Accounts Receivable—net decrease ………………………………

14. Retained Earnings—debit for net loss …………………………….

15. Accounts Payable—net increase ……………………………………

16. Bonds Payable—credit for issuance for cash …………………

17. Retained Earnings—debit for cash dividends paid ………..

18. Machinery—credit for items sold …………………………………….

19. Other Intangible Assets …………………………………………………..

INSTRUCTIONS: For each of the following situations, identify the cost as either a direct cost(D) or an indirect cost(I).

Direct or

Indirect

ITEM

0. Postage expense for a broom manufacturer ……………………………………..

I

20. Materials used for specific jobs ………………………………………………………….

21. Factory materials incurred on non-specific jobs ………………………………..

22. Cash paid for factory utilities costs incurred ………………………………………

23. Rental cost on a factory building…………………………………………………………

24. Design costs for a new product line…………………………………………………….

25. Cost Accounting Department salaries…………………………………………………

26. Factory labor incurred on specific jobs ………………………………………………

27. Salary of vice-president of manufacturing …………………………………………

INSTRUCTIONS: Indicate the titles of the accounts to be debited and credited in recording the summarized operations presented below by choosing the letter of the account title.

ACCOUNTS

A. Accounts Payable E. Factory Overhead I. Selling and Administrative

Expenses

B. Accounts Receivable F. Finished Goods J. Wages Payable

C. Cash G. Materials K. Work in Process

D. Cost of Goods Sold H. Sales

Debit

Credit

0. Cash paid on account …………………………………………………………………………

A

C

28 – 29… Applied factory overhead to jobs ………………………………………………………..

28.

29.

30–31. Paid salary of vice-president of finance …………………………………………….

30.

31.

32–33. Cash paid for overhead costs incurred ………………………………………………

32.

33.

34–35. Cost of jobs completed ………………………………………………………………………

34.

35.