1. Which of the following can be found on the statement of cash flows?
a) total changes in stockholders' equity
b) changes in retained earnings
c) total assets
d) cash flows from operating activities
2. On the statement of cash flows, the cash flows from operating activities section would include
a) cash receipts from sales activities
b) receipts from the sale of investments
c) receipts from the issuance of capital stock
d) payments for the acquisition of investments
3. Cash paid to purchase long-term investments would be reported in the statement of cash flows in
a) the cash flows from investing activities section
b) a separate schedule
c) the cash flows from financing activities section
d) the cash flows from operating activities section
4. The percentage analysis of increases and decreases in individual items in comparative financial statements is called
a) vertical analysis
b) horizontal analysis
c) profitability analysis
d) solvency analysis
5. Which of the following is the most useful in analyzing companies of different sizes?
a) audit report
b) common-sized financial statements
c) comparative statements
d)price-level accounting
6. Cost accounting systems measure, record, and report product costs.
True
False
7. Process manufacturing usually reflects a manufacturer that produces small quantities of unique items.
True
False
8. Process and job order cost systems are similar in all of the following ways except
a) both maintain perpetual inventories
b) both accumulate product costs—direct materials, direct labor, and factory overhead
c) both use job order cost cards
d) both allocate product cost to units produced
9. The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is
a) first-in, first-out
b) departmental
c) job order
d) process