1. After you make profit ( net income), which of the following is an activity fo
ID: 2422650 • Letter: 1
Question
1. After you make profit ( net income), which of the following is an activity for which you can use your cash?
A) Paying your operating lease payments
B) Pay your employees their salaries
C) Pay the stockholders dividends
D) Paying last years depreciation
2. Common Stock of a company as presented on its balance sheet is changed as the market value of the shares changes
A) True B) False
3. The liability and shareholder equity side of the balance sheet tells you all of the following except:
A) How the company is financed
B) what the company owns
C) who owns the company
D) how profitable the company has been over time
4. Activity - based costing is:
A) Allocating manfacuring overhead costs based on production volume
B) Allocating manfacuring overhead costs based on sales volume
C)Allocating manfacuring overhead costs based on direct manfacuring
D) None of the above
5. Gross profit minus operating expenses =
A) Net Profit
B) Operating profits
C) Cost of goods sold
6. For an Aircraft manfacturer, which of the following would most likely be accounted for a direct cost?
A) salary of a manfacuring supervisiot
B) factory insurance expense
C) Jet Engine
D) accountant audit fees
7. When you record the purchase of a copier as a fixed assets, you have capitalized the purchase, what represents the allocation of the cost of the copier to expense over its useful life?
A) Expense the copier
B) Capitalize the copier
C) Allocate copier
D) Depreciation
Explanation / Answer
Answer 1: C) Pay the stockholders dividends
Answer 2: B) False
Answer 3: B) What the company owns
Answer 4: D) None of the above
Answer 5: B) Operating expenses
Answer 6: A) Salary of a manufacturing supervisor
Answer 7: D) Depreciation
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