ACCT 301 Midterm Exam Solution Perfect Score (TCO 1) Which pair of accounts follows the rules of debit and credit, in relation to increases and decreases, in the same manner? (TCO 2) Which of the following is not part of the recording process? (TCO 3) Two individuals at a retail store work the same cash register. You evaluate this situation as which of the following? (TCO 4) The retained earnings statement shows all of the following except which one? (TCO 5) In the annual report, where would a financial statement reader find out if the company’s financial statements give a fair depiction of its financial position and operating results? (TCO 6) Using the following balance sheet and income statement data, what is the
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(TCO 7) Which type of center is the toy department in a Wal-Mart store? (TCO 7) The best measure of the performance of the manager of a profit center is which of the following? (TCO 7) An investment center generated a contribution margin of $200,000, controllable fixed costs of $100,000 and sales of $1,000,000. The center’s average operating assets were $400,000. How much is the return on investment? (TCO 11) Assume you have just taken a position as controller for a new company that manufactures and sells wrought iron wall hangings. Although the founder of the company, who is the president and CEO, is a great artisan, she has very limited knowledge of accounting.
To help your new boss better understand accounting for a manufacturing organization, prepare a response to her in which you: (1) identify, (2) describe, and (3) provide examples of the three manufacturing costs used in accounting for a manufacturing company. (TCO 4) Are short-term creditors, long-term creditors, and stockholders primarily interested in the same characteristics of a company? Explain. (TCO 1) Management’s views on the company’s short-term debt paying ability, expansion financing, and results of operations are found in which of the following? (TCO 3) Joe is a warehouse custodian, and also maintains the accounting record of the inventory held at the warehouse. An