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WorksheetsCost Accounting and Control Quiz
Total questions: 68
Worksheet time: 23mins
Which of the following formula is not used on least-square method?
Y= a +bx
∑Y= na + b∑x
∑XY=∑xa+b∑y²
∑XY= ∑xa+ b∑x²
Salex mix is measured in terms of
Unit sold
Variable cost
Unit produced
Total Fixed cost
_______________ Is the intersection between financial and managerial accounting
Backflush Accounting
Cost Accounting
Operational Accounting
Investing Accounting
_______________ is the difference between actual price and expected price multiplied by the actual quantity or volume sold
Sales Price Variance
Sales Volume Variance
Overall Sales Variance
Profit Variance
____________ exists when a manager deliberately underestimates revenues or overestimates costs
Participative Budgeting
Budgetary Slack
Sound Budgetary System
None of the above
A systemwide integrated approach that focuses management’s attention on activities with the objective of improving customer value and the profit achieved by providing this value called_______
Activity- Based Management
Activity Accounting
Process Value Analysis
None of the Above
A special case of the decentralize firm is the________
Special Corporation
Multinational Corporation
Multi-Purpose Cooperative
Proprietorship
Calculate the break-even point in units.
2,300,000
2,100,000
1,100,000
900,000
Calculate the break-even point in sales revenue.
188,000
168,000
180,000
160,000
Calculate the margin of safety in units for the coming year.
730,000
370,000
950,000
674,000
Calculate the margin of safety in sales revenue for the coming year.
480,000
739,000
58,400
98,000
Estimate the annual cash flows for the cellphone project
500,000
294,000
(246,000)
480,000
Using the estimate annual cash flow, calculate the NPV
500,000
294,600
(246,000)
480,000
What if revenues were overestimated by $150,000? Redo the NPV analysis, correcting for this error. Assume the operating expenses remain the same.
500,000
294,000
(246,000)
480,000
Which of the following statements is incorrect?
The primary objective of an audit is to obtain assurance that the financial statements are free from misstatement.
The audit opinion is formed based on sufficient and appropriate evidence gathered during the engagement.
Audit staff must be properly supervised by partners and managers when performing audit work.
Auditors are expected to carry out their work with an attitude of professional skepticism
Which of the following is not considered a primary driver of audit quality?
Competence and personal qualities of audit staff
Size of the audit firm
Effectiveness of audit processes
The culture within the audit firm
Which of the following is the most common method of reducing information risk?
Allowing users themselves to verify the information
Having the financial statements audited
Allowing all users to prepare the financial statements
Requiring users to share the information risk with management
In verifying the validity of accounts receivable, which of the following provides the auditor with the most reliable evidence?
Direct telephone communication between the auditor and the debtor
Documentary records supporting the accounts receivable balance
Confirmation responses received directly from customers
Records of cash receipts applied to accounts receivable after year-end
When an auditor’s objective is to assess the appropriateness of sales adjustments, which type of evidence is generally considered the most reliable?
Documentary evidence from inspecting records that support entries in adjustment accounts
Oral evidence obtained through discussions with controller personnel about adjustment procedures
Analytical evidence from comparing sales adjustments with gross sales over a period of time
Physical evidence from inspecting goods returned for credit
The use of the negative form of accounts receivable confirmation is appropriate in most situations, except when:
Individual account balances are relatively large
Internal control over accounts receivable is considered effective
There are many small account balances
Recipients of the confirmation requests are expected to give due attention to them
Which of the following internal control procedures would most effectively prevent the concealment of a cash shortage through the improper write-off of a trade account receivable?
Write-offs must be supported by an aging schedule indicating that only long-overdue accounts have been written off.
Write-offs must be approved by the cashier, who is in a position to know whether the receivables were actually collected.
Write-offs must be approved by a responsible officer after reviewing the credit department’s recommendations and supporting documentation.
Write-offs must be authorized by company field sales employees, who are familiar with the financial condition of customers.
Two months prior to year-end, the bookkeeper incorrectly recorded the proceeds of a long-term bank loan as a debit to Cash and a credit to Sales. Which of the following procedures would be most effective in detecting this error?
Review bank confirmation information.
Review the notes payable journal.
Prepare the year-end bank reconciliation.
Prepare a year-end bank transfer schedule.
How much is the petty cash shortage or overage?
2190 overage
2190 shortage
1890 shortage
1890 overage
What is the adjusted balance of the petty cash fund at July 31,2023?
10,750
3,540
7,200
8,850
What is Huo’s basic earnings per share for 2024?
3.16
4.62
5.07
3.49
What is Huo’s diluted earnings per share for 2024?
3.16
4.62
5.07
3.49
Income from continuing operations in 2022
3,543,750
4,899,375
3,909,375
4,511,250
Net income in 2022
3,543,750
4,899,375
3,909,375
4,511,250
In this situation: Juan offered to sell his house and lot to Pedro for ₱1,500,000. Pedro accepted the offer. He paid ₱500 and was given 30 days to pay the remaining balance. Before the 30-day period lapsed, Juan withdrew his offer and returned the ₱500 after finding another buyer willing to pay double the price.
Juan validly withdrew the offer since it was still within the 30-day period.
Juan cannot validly withdraw the offer because the ₱500 constituted option money.
Juan validly withdrew the offer since ownership of the property had not yet been transferred.
Juan cannot validly withdraw the offer because a perfected contract of sale already existed.
In the dissolution of a limited partnership, which has the least priority in the distribution of assets?
Amounts owed to creditors other than partners
Amounts owed to limited partners with respect to profits
Amounts owed to general partners with respect to profits
Amounts owed to general partners with respect to capital
If the by-laws are adopted before incorporation, they must be signed by _____ of the incorporators:
One-third
Majority
Two-thirds
All
Which of the following corporate officer positions may be held at the same time by one person?
President and Secretary
Treasurer and Secretary
President and Treasurer
None of the above
Which of the following is still a requirement for a One Person Corporation?
Articles of Incorporation
By-laws
Minutes of the Meeting
None of the above
Failure to comply with this type of obligation gives rise to a right of action to compel its performance.
Natural Obligations
Moral Obligations
Civil Obligations
All of the above
When a debtor obligates himself to pay only when his financial means allow, the obligation is considered:
Subject to a suspensive condition
Subject to a resolutory condition
With a suspensive term
With a resolutory term
If a managing partner is appointed after the formation of the partnership, what is required to revoke his authority?
Just and lawful cause
Vote of the controlling interest
Both just and lawful cause and the vote of the controlling interest
Just and lawful cause together with the unanimous vote of the partners
This type of partner is generally not required to make additional contributions to save the partnership, unless expressly agreed otherwise:
Capitalist partner
Industrial partner
Managing partner
Ostensible partner
A corporation’s personality is separate and distinct from that of its stockholders. This illustrates which attribute of a corporation?
Artificial Being
Created by Operation of Law
Right of Succession
Possesses Powers, Attributes, and Properties Expressly Authorized by Law
S orally agreed to sell his piano to B for ₱7,000. B made an initial payment of ₱1,000. Later, S denied that there was such a sale. Can B enforce the sale in court despite the fact that the agreement was oral and the price exceeds ₱500?
No, because the sale was not in writing and the price exceeded ₱500.
Yes, because the contract was perfected and does not need to be in writing.
Yes, because partial payment was made, which takes the contract out of the coverage of the Statute of Frauds.
No, because movable property can only be sold through a written contract if the price exceeds ₱500.
Which of the following describes a person who is considered a partner by estoppel?
A person who contributes capital but does not participate in the management of the partnership.
A person who is unaware of the partnership's existence but receives profits.
A person who, by direct or indirect representation, allows himself to be represented as a partner and is held liable to third parties as if he were a true partner.
A person who inherits a deceased partner’s interest without joining the management
S sold to B a portion of a parcel of land, but the specific boundaries or exact portion sold were not indicated in the contract. Is there a valid sale?
Yes, because S is the owner and may sell any part of the land, even if not specifically described.
No, because the contract did not describe a determinate or identifiable portion of the land.
Yes, because a sale of an undivided interest or portion of land is allowed even if not yet physically segregated.
No, because the law requires land to be titled before it can be sold
A contract of sale is perfected only when the object has been delivered and the buyer has paid the full price. According to Article 1475 of the Civil Code, a contract of sale is perfected by a written document signed by both the buyer and the seller. What is the correct answer?
Both statements are true
Both statements are false
Only Statement 1 is true
Only Statement 2 is true
A stockholder, dissatisfied with the management of the corporation, decides to surrender his stock certificates and demands the return of the subscription price he paid. Can he rightfully compel the corporation to return his contribution?
Yes, because he no longer wants to be part of the corporation.
Yes, because stockholders may withdraw their investment at any time.
No, because stock subscriptions are considered debts of the corporation to the stockholder.
No, because stockholder contributions are not credits or debts, and the corporation is entitled to retain them as long as it is ongoing and not under dissolution.
It refers to any act or trick that reduces or totally escapes taxes by any legally permissible means.
Tax Evasion
Tax Avoidance
Tax Exemption
Tax Ignorance
The constitutional exemption of non-stock, non-profit educational institutions refer to
Real property tax
Income Tax
Property tax and Income tax
Business tax
Which of the following are an example of active income?
I. Compensation Income
II. Business Income
III. Professional Income
IV. Interest Income from banks
Which of the following statements is true? Statement 1: Condonation applies prospectively to any unpaid balance of the tax. Statement 2: Condonation operates retrospectively by forgiving past violations.
Statement 1
Statement 2
Both of the statements are true
None of the statements are true
Which of the following is not an example of fringe benefit; I. Housing Benefits II. Mandatory Government Benefits (e. g., SSS and Philhealth) III. Vehicles of any kind IV. Performance-based bonuses
I and III
II and IV
All of the items are not an example of fringe benefit
All of the items are an example of fringe benefit
Required: Determine the taxable amount of de-minimis benefits.
14,400
13,800
16,800
15,400
How much is Mary’s Taxable Compensation Income?
374,000
366,000
382,000
390,000
How much is Mary’s Total Exempt benefits?
273,800
269,000
281,800
271,000
How much is Mary’s Total Tax due?
16,700
21,000
15,400
19,800
Compute for monetary value of fringe benefits.
43,000
34,000
44,000
0
Compute for the amount of fringe benefits subject to the fringe benefit tax rate of 35%
26,923
76,923
30,000
32,500
Which of the following statement is true? Statement 1: Origination fees are added when measuring the carrying amount of loan payable. Statement 2: Origination fees are included in the calculation of the effective interest rate.
Only Statement 1 is true
Only Statement 2 is true
Both of the statements are true
None of the Statements are true
Which of the following statement is false? Statement 1: When there is a discount, the effective interest rate is higher than the nominal rate. Statement 2: When there is a discount, the effective interest rate is less than the nominal rate.
Only Statement 1 is false
Only Statement 2 is false
Both of the statements are false
None of the Statements are false
Which of the following are classified under investing activities? I. Cash flows from buying and selling held for trading securities II. Cash receipts and cash payments in the acquisition and sale of equity or debt instruments of other entities III. Cash receipts and cash payments on derivative assets and liabilities
II and III
II and I
I and III
I, II, and III
Which of the following are the characteristics of a Define Contribution Plan? I. The employer commits to make fixed contributions to a fund. The amount of benefits that an employee will receive is dependent on the fund balance. II. The employer commits to pay a definite amount of retirement benefits. Such amount is independent of any fund balance. III. The risk that the fund may be insufficient to pay for the promised benefits rests with the employer. IV. The risk that the fund may be insufficient to meet the expected benefits rests with the employee.
I and III
I and IV
II and III
II and IV
Which of the following indicators will not lead to a finance lease classification? I. The lessee has the option to purchase the underlying asset at a price that is expected to be the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that the options will be exercised. II. The lease term is for the major part of the economic life of the asset even if the title is not transferred. III. The present value of the lease payments amounts to at least substantially all of the fair value of the leased asset at the inception date. IV. Gains or losses from the fluctuation in the fair value of the residual accrue to the lessee.
I
II
III
IV
What is the amount of gross sales?
4,110,000
4,160,000
4,210,000
4,260,000
What is the amount of gross purchases?
3,000,000
3,050,000
2,600,000
2,650,000
What is the amount of the cost of sales for the year?
2,625,000
2,575,000
2,675,000
2,725,000
What amount of rental revenue should the company report for the year?
454,000
426,000
374,000
346,000
How much interest expense should the company report for the year?
86,000
97,000
103,000
114,000
How much is the initial cost of the right of use asset on December 31, 2018?
420,926
474,660
480,000
500,000
How much is the interest expense in 2019?
0
36,111
57,600
60,000
How much is the lease-related liability to be shown as current in the statement of financial position on December 31, 2018?
300,926
217,037
83,889
36,111
How much is the lease-related liability to be shown as noncurrent in the statement of financial position on December 31, 2018?
300,926
217,037
83,889
36,111
