Problem 1: Which one of the following reports serves as the primary communication of audit findings?
a. the auditor's report on internal controls.
b. the auditor's report on financial statements
c. the auditor's report on disagreements with management.
d. the auditor's report on significant audit adjustments.
e. the auditor's report on consultation with other accountants.
Problem 2: Managerial accounting information
a. pertains to the entity as a whole and is highly aggregated.
b. pertains to subunits of the entity and may be very detailed.
c. is prepared only once a year.
d. is constrained by the requirements of generally accepted accounting principles.
Problem 3: Managerial accounting does not encompass
a. calculating product cost.
b. calculating earnings per share.
c. determining cost behavior.
d. profit planning.
Problem 4: Which of the following is not classified as direct labor?
a. Bottlers of beer in a brewery
b. Copy machine operators at a copy shop
c. Wages of supervisors
d. Bakers in a bakery
Problem 5: Which one of the following costs would not be inventoriable?
a. Period costs
b. Factory insurance costs
c. Indirect materials
d. Indirect labor costs
Problem 6: Who recommended that the APB be abolished and the FASB be created?
a. The SEC
b. Wheat Committee
c. President John Kennedy
d. The AICPA