Information Science and Technology

2023-06-27 14:27:02 the last monthly payment will be interest, and a larger proportion
will be principal, than for the first monthly payment.
C. The total dollar amount of principal being paid off each month gets smaller as the loan
approaches maturity.
D. Exactly 10% of the first monthly payment represents interest.
Page 23 of 25
37. Mr. x is going to receive $10,000 six years from now. Mr. y is going to receive $10,000 nine
years from now. Which one of the following statements is correct if both Mr. x and Mr. y apply a
12 percent discount rate to these amounts?
A. The present values of Mr. x and Mr. y money are equal.
B. In future dollars, Mr. y money is worth more than Mr. x ' money.
C. In today's dollars, Mr. x ' money is worth more than Mr. y.
D. Mr. y money is worth more than Mr. x money given the 7 percent discount rate.
38. Walker & Son is issuing a 10-year, $1,000 par value bond that pays 9% interest annually.
The bond is expected to sell for $885. What is Walker & Son's after-tax cost of debt if the firm is
in the 34% tax bracket? Approximate to the nearest figure
A. 7.11% B. 8.01% C. 9.15% D. 10.35%
39. Which of the following reasons causes bonds to be a less expensive form of capital for a
public firm than the issuance of common stock? Bondholders:
A. bear less risk than common stockholder‟s bear.
B. have prior voting rights over common stockholders.
C. receive greater returns than common stockholders.
D. investors pay a lower tax rate on bond interest
40. ABC co. is expected to pay an annual dividend of $0.80 a share next year. The market price
of the stock is $22.40 and the growth rate is 5 percent. What is the firm's cost of equity?
A.7.58 percent B.7.91 percent C.8.24 percent D.8.57 percent
Page 24 of 25
UNITY UNIVERSITY
DEPARTMENT OF ACCOUNTING AND FINANCE
ADAMA CAMPUS
MODEL EXAM
Name: ID. No: Section
ANSWER SHEETS.
Booklet No 1 Fundamentals of Accounting I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
Booklet No 2 Intermediate Financial Accounting I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
Booklet No 3 Cost and Management Accounting I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
Page 25 of 25
Booklet No 4 Financial Managements I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40 ክፈት / አስተያየት ይስጡ

2023-06-27 14:27:02 ditional fixed assets.
B. Issue long-term debt to buy inventory.
C. Sell common stock to reduce current liabilities.
D. Sell fixed assets to reduce accounts payable.
25. The gross profit margin is unchanged, but the net profit margin declined over the same
Page 21 of 25
period. This could have happened if
A. cost of goods sold increased relative to sales.
B. sales increased relative to expenses.
C. Govt. increased the tax rate.
D. dividends were decreased
26. STAR Industries has a debt-to-equity ratio of 1.5 compared with the industry average
of 1.3. This means that the company
A. will not experience any difficulty with its creditors.
B. has less liquidity than other firms in the industry.
C. will be viewed as having high creditworthiness.
D. has greater than average financial risk when compared to other firms in its industry.
27. ABC Inc. operates as a partnership. Now the partners have decided to convert the business
into a corporation. Which of the following statements is CORRECT?
A. The ex-partners will now be exposed to less liability.
B. The company will probably be subject to fewer regulations and required disclosures.
C. The firm's investors will be exposed to less liability, but they will find it more difficult
to transfer their ownership.
D The firm will find it more difficult to raise additional capital to support its growth.
28. Profit maximization does not adequately describe the goal of the firm because:
A. profit maximization does not require the consideration of risk.
B. profit maximization ignores the timing of a project's return.
C. maximization of dividend payout ratio is a better description of the goal of the firm.
D. A and B.
29. What does the agency problem refer to?
A. The conflict that exists between the board of directors and the employees of the firm.
B. The problem associated with financial managers and Internal Revenue agents.
C. The conflict that exists between stockbrokers and investors.
D. The problem that results from potential conflicts of interest between the manager of a
business and the stockholders.
30. Why do investors prefer receiving cash sooner rather than later, according to finance theory?
A. Incremental profits are greater than accounting profits.
B. Money received earlier can be reinvested and returns can be increased.
C. Tax considerations are important when investing.
Page 22 of 25
D. Diversification leads to increased value.
31. A company can improve (lower) its debt-to-total assets ratio by doing which of the
following?
A. Borrow more. B. Shift short-term to long-term debt.
B. Shift long-term to short-term debt. D. Sell common stock.
32. Which of the following statements (in general) is correct?
A. A low receivables turnover is desirable.
B. The lower the total debt-to-equity ratio, the lower the financial risk for a firm.
C. An increase in net profit margin with no change in sales or assets means a poor ROI.
D. The higher the tax rate for a firm, the lower the interest coverage ratio.
33. Which of the following statements is correct?
A. If the NPV of a project is greater than 0, its PI will equal 0.
B. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0.
C. If the PI of a project is less than 1, its NPV should be less than 0.
D. If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its
NPV will be greater than 0.
34. To increase a given present value, the discount rate should be adjusted
A. upward. B. downward. C. No change. D. constant
35. Which of the following is not the responsibility of financial management?
A. allocation of funds to current and capital assets
B. obtaining the best mix of financing alternatives
C. preparation of the firm's accounting statements
D. development of an appropriate dividend policy
36. Which of the following statements regarding a 10-year monthly payment amortized mortgage
with a nominal interest rate of 12% is CORRECT?
A. The monthly payments will decline over time.
B. A smaller proportion of ክፈት / አስተያየት ይስጡ

2023-06-27 14:27:01 a potential investment by calculating the sum of the present
values of its expected cash flows. Which of the following would increase the calculated value
of the investment?
A. The cash flows are in the form of annuity and lasts for 10 years rather than 5 years.
Page 19 of 25
B. The discount rate decreases.
C. The riskiness of the investment‟s cash flows increases.
D. The total amount of cash flows remains the same, but more of the cash flows are received
in the later years and less are received in the earlier years.
10. Mr. „x‟ now has $800. How much would he have after 7 years if he leaves it invested at 9%
with annual compounding?
A. $4910.9 B. $622.20 C. $1462.43 D. None
11. Which one of the following will produce the highest present value interest factor?
A. 8 percent interest for five years C. 8 percent interest for eight years
B. 12 percent interest for ten years D. 10 percent interest for ten years
12. The return that shareholders require on their investment in the firm is called the:
A. Coupon payment. C. Cost of equity.
B. Capital gains. D. cost of capital.
13. The costs incurred by the firm when new issues of stocks or bonds are sold are called:
A. Required rates of return. C. Costs of capital.
B. Flotation costs. D. Costs of equity and debt.
14. Which of the following must be adjusted for the firm's tax rate when estimating the weighted
average cost of capital WACC?
A. Cost of common equity C. Cost of preferred stock
B. Cost of debt D. All of the above
15. In calculating the cost of capital for an average firm, which of the following statements is
true?
A. The cost of a firm's bonds is greater than the cost of its common stock.
B. The cost of a firm's preferred stock is greater than the cost of its common stock.
C. The cost of a firm's retained earnings is less than the cost of its bonds.
D. The cost of a firm's common stock is greater than the cost of its bonds.
16. The approach to capital budgeting which divides an accounting measure of income by an
accounting measure of investment is
A. Accounting rate of return. C. Internal rate of return.
B. Payback method. D. Net present value.
17. The capital budgeting method which calculates the expected monetary gain or loss from a
project by discounting all expected future cash inflows and outflows to the present point in
time using the required rate of return is the
Page 20 of 25
A. payback method. C. Accounting rate-of-return method.
B. Benefit cost ratio methods. D. Net present value method.
18. The method that measures the time it will take to recoup, in the form of future cash inflows,
the total dollars invested in a project is called
A. Accounting rate-of-return method. C. Payback method.
B. Internal rate-of-return method. D. Net present value method.
19. Which of the following is an appropriate term for the required rate of return?
A. Discount rate B. Hurdle rate C. Cost of capital D. All of the above
20. In capital budgeting, a project is accepted only if the internal rate of return
A. Equals or exceeds the required rate of return.
B. Equals or is less than the required rate of return.
C. Equals or exceeds the net present value.
D. Equals or exceeds the accrual accounting rate of return.
21. The focal point of financial management in a firm is:
A. the number and types of products or services provided by the firm.
B. the minimization of the amount of taxes paid by the firm.
C. the creation of value for shareholders.
D. the dollars profits earned by the firm
22. A would be an example of a principal, while a would be an example
of an agent.
A. shareholder; manager B. manager; owner
C. accountant; bondholder D. shareholder; bondholder
23. _____and ___ are the two versions of goals of the financial management of the firm.
A. Profit maximization, Wealth maximization
B. Production maximization, Sales maximization
C. Sales maximization, Profit maximization
D. Value maximization, Wealth maximization
24. Which of the following would NOT improve the current ratio?
A. Borrow short term to finance ad ክፈት / አስተያየት ይስጡ

2023-06-27 14:27:01 of ክፈት / አስተያየት ይስጡ

2023-06-27 14:27:01 Page 16 of 25
A. 800 units B. 920 units C. 1,000 units D. 200 units E.1,200 units
28. The cost per equivalent units is
A. Br. 50.32 B.Br. 50 C. Br. 0.50 D. Br. 10 E.Br.40
29. The labor costs embodied in the goods transferred out amount to
A. Br. 40,000 B. Br. 50,000 C. Br. 10,000 D. Br. 40,256 E. None
30. The labor cost embodied in the ending work in process is
A. Br.1000 B. Br. 10,000 C. 50,000 C. 40,000 D. Br. 10,064 E. None
Please use Forming Department of Nice Company information given above and additional
shown below & answer question No.31-34
Additional information
Beginning WIP costing method ………………………FIFO
Stage of completion for beginning WIP……………… 80%
31. Equivalent units of production as per of labor is
A. 840 units B. 920 units C. 1000 units D. 200 units E.800 units
32. The cost per equivalent units is
A. Br. 50 B.Br. 48 C. Br. 0.50 D. Br. 10 E.Br.40
33. The labor costs embodied in the goods transferred out amount to
A. Br. 40,000 B. Br. 1,920 C. Br30, 720 D. Br. 28,800 E. None
34 The labor cost embodied in the ending work in process is
A. Br.1000 B. Br. 10,000 C. 50,000 D. 9,600 D. Br. 32,000
Given:- Data Chemical Company Joint products are named Release & Buff. The following
information relating to quantity produced and sales of the product. Common Cost of the period
assumes Br. 81,700. Based on the given information answer question 35 & 36
Product Units in terms of
gallons
Sales Per Unit Total Sales Value
Release 128,000 Br.0.60 Br. 76,800
Buff 62,000 0.80 49,600
Total sales value 190,000 gallons Br. 126,400
35. If common cost allocation made based on physical units & then manufacturing cost of
Release & Buff respectively is
A. Br. 0.43 per gallons C. Br. 26,660 & Br. 55,040
B. Br. 55,040 & Br. 26,660 in total D. A & B E. None of the above
36. If common cost allocation made based on Relative Sales Value & then manufacturing cost of
Release & Buff respectively is
A. Br. 49,640.50 & Br. 32,059.50 C. Br. 26,660 & Br. 55,040
B. Br. 55,040 & Br. 26,660 in total D. Br.32, 059.50 & Br. 49,640 E. None of the above
37. Job Order Costing System characterized by the following except
A. products are manufactured based on customer specification
Page 18 of 25
C. Decrease the current ratio and increase the acid-test ratio.
D. Decrease the current ratio and decrease the acid-test ratio.
3. ABC Corporation has a current ratio of 3.2. Which of the following transactions will increase
ABC's current ratio?
A. The purchase of inventory for cash. C. The collection of an account receivable.
B. The payment of an account payable. D. none of the above.
4. The true owners of the corporation are the:
A. holders of debt issues of the firm. C. preferred stockholders.
B. board of directors of the firm. D. common stockholders.
5. Which of the following involves significant financial investments in projects to develop
new products, expand production capacity, or remodel current production facilities?
A. Capital budgeting B. Working capital
C. Master budgeting D. Project-cost budgeting
6. Whenever evaluating two capital projects, which one of the following decision rules is
accepted?
A. The project with longer payback period.
B. The project with lower accounting rate of return.
C. The project with positive and higher NPV.
D. The project with less than 1 Profitability index.
7. You are investing $1 today in a savings account at your local bank. Which one of the
following terms refers to the value of this investment one year from now?
A. Future value C. Present value
B. Principal amounts D. Discounted value
8. Which of the following statements is correct?
A. The cash flows for an ordinary annuity all occur at the beginning of the periods.
B. If a series of unequal cash flows occurs at regular intervals, such as once a year, then the
series is by definition an annuity.
C. The cash flows for an annuity due must all occur at the ends of the periods.
D. The cash flows for an annuity must all be equal, and they must occur at regular intervals.
9. You plan to analyze the value ክፈት / አስተያየት ይስጡ

2023-06-27 14:24:39 the last monthly payment will be interest, and a larger proportion
will be principal, than for the first monthly payment.
C. The total dollar amount of principal being paid off each month gets smaller as the loan
approaches maturity.
D. Exactly 10% of the first monthly payment represents interest.
Page 23 of 25
37. Mr. x is going to receive $10,000 six years from now. Mr. y is going to receive $10,000 nine
years from now. Which one of the following statements is correct if both Mr. x and Mr. y apply a
12 percent discount rate to these amounts?
A. The present values of Mr. x and Mr. y money are equal.
B. In future dollars, Mr. y money is worth more than Mr. x ' money.
C. In today's dollars, Mr. x ' money is worth more than Mr. y.
D. Mr. y money is worth more than Mr. x money given the 7 percent discount rate.
38. Walker & Son is issuing a 10-year, $1,000 par value bond that pays 9% interest annually.
The bond is expected to sell for $885. What is Walker & Son's after-tax cost of debt if the firm is
in the 34% tax bracket? Approximate to the nearest figure
A. 7.11% B. 8.01% C. 9.15% D. 10.35%
39. Which of the following reasons causes bonds to be a less expensive form of capital for a
public firm than the issuance of common stock? Bondholders:
A. bear less risk than common stockholder‟s bear.
B. have prior voting rights over common stockholders.
C. receive greater returns than common stockholders.
D. investors pay a lower tax rate on bond interest
40. ABC co. is expected to pay an annual dividend of $0.80 a share next year. The market price
of the stock is $22.40 and the growth rate is 5 percent. What is the firm's cost of equity?
A.7.58 percent B.7.91 percent C.8.24 percent D.8.57 percent
Page 24 of 25
UNITY UNIVERSITY
DEPARTMENT OF ACCOUNTING AND FINANCE
ADAMA CAMPUS
MODEL EXAM
Name: ID. No: Section
ANSWER SHEETS.
Booklet No 1 Fundamentals of Accounting I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
Booklet No 2 Intermediate Financial Accounting I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
Booklet No 3 Cost and Management Accounting I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
Page 25 of 25
Booklet No 4 Financial Managements I
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
31. 32. 33. 34. 35. 36. 37. 38. 39. 40 ክፈት / አስተያየት ይስጡ

2023-06-27 14:24:38 ditional fixed assets.
B. Issue long-term debt to buy inventory.
C. Sell common stock to reduce current liabilities.
D. Sell fixed assets to reduce accounts payable.
25. The gross profit margin is unchanged, but the net profit margin declined over the same
Page 21 of 25
period. This could have happened if
A. cost of goods sold increased relative to sales.
B. sales increased relative to expenses.
C. Govt. increased the tax rate.
D. dividends were decreased
26. STAR Industries has a debt-to-equity ratio of 1.5 compared with the industry average
of 1.3. This means that the company
A. will not experience any difficulty with its creditors.
B. has less liquidity than other firms in the industry.
C. will be viewed as having high creditworthiness.
D. has greater than average financial risk when compared to other firms in its industry.
27. ABC Inc. operates as a partnership. Now the partners have decided to convert the business
into a corporation. Which of the following statements is CORRECT?
A. The ex-partners will now be exposed to less liability.
B. The company will probably be subject to fewer regulations and required disclosures.
C. The firm's investors will be exposed to less liability, but they will find it more difficult
to transfer their ownership.
D The firm will find it more difficult to raise additional capital to support its growth.
28. Profit maximization does not adequately describe the goal of the firm because:
A. profit maximization does not require the consideration of risk.
B. profit maximization ignores the timing of a project's return.
C. maximization of dividend payout ratio is a better description of the goal of the firm.
D. A and B.
29. What does the agency problem refer to?
A. The conflict that exists between the board of directors and the employees of the firm.
B. The problem associated with financial managers and Internal Revenue agents.
C. The conflict that exists between stockbrokers and investors.
D. The problem that results from potential conflicts of interest between the manager of a
business and the stockholders.
30. Why do investors prefer receiving cash sooner rather than later, according to finance theory?
A. Incremental profits are greater than accounting profits.
B. Money received earlier can be reinvested and returns can be increased.
C. Tax considerations are important when investing.
Page 22 of 25
D. Diversification leads to increased value.
31. A company can improve (lower) its debt-to-total assets ratio by doing which of the
following?
A. Borrow more. B. Shift short-term to long-term debt.
B. Shift long-term to short-term debt. D. Sell common stock.
32. Which of the following statements (in general) is correct?
A. A low receivables turnover is desirable.
B. The lower the total debt-to-equity ratio, the lower the financial risk for a firm.
C. An increase in net profit margin with no change in sales or assets means a poor ROI.
D. The higher the tax rate for a firm, the lower the interest coverage ratio.
33. Which of the following statements is correct?
A. If the NPV of a project is greater than 0, its PI will equal 0.
B. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0.
C. If the PI of a project is less than 1, its NPV should be less than 0.
D. If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its
NPV will be greater than 0.
34. To increase a given present value, the discount rate should be adjusted
A. upward. B. downward. C. No change. D. constant
35. Which of the following is not the responsibility of financial management?
A. allocation of funds to current and capital assets
B. obtaining the best mix of financing alternatives
C. preparation of the firm's accounting statements
D. development of an appropriate dividend policy
36. Which of the following statements regarding a 10-year monthly payment amortized mortgage
with a nominal interest rate of 12% is CORRECT?
A. The monthly payments will decline over time.
B. A smaller proportion of ክፈት / አስተያየት ይስጡ

2023-06-27 14:24:38 a potential investment by calculating the sum of the present
values of its expected cash flows. Which of the following would increase the calculated value
of the investment?
A. The cash flows are in the form of annuity and lasts for 10 years rather than 5 years.
Page 19 of 25
B. The discount rate decreases.
C. The riskiness of the investment‟s cash flows increases.
D. The total amount of cash flows remains the same, but more of the cash flows are received
in the later years and less are received in the earlier years.
10. Mr. „x‟ now has $800. How much would he have after 7 years if he leaves it invested at 9%
with annual compounding?
A. $4910.9 B. $622.20 C. $1462.43 D. None
11. Which one of the following will produce the highest present value interest factor?
A. 8 percent interest for five years C. 8 percent interest for eight years
B. 12 percent interest for ten years D. 10 percent interest for ten years
12. The return that shareholders require on their investment in the firm is called the:
A. Coupon payment. C. Cost of equity.
B. Capital gains. D. cost of capital.
13. The costs incurred by the firm when new issues of stocks or bonds are sold are called:
A. Required rates of return. C. Costs of capital.
B. Flotation costs. D. Costs of equity and debt.
14. Which of the following must be adjusted for the firm's tax rate when estimating the weighted
average cost of capital WACC?
A. Cost of common equity C. Cost of preferred stock
B. Cost of debt D. All of the above
15. In calculating the cost of capital for an average firm, which of the following statements is
true?
A. The cost of a firm's bonds is greater than the cost of its common stock.
B. The cost of a firm's preferred stock is greater than the cost of its common stock.
C. The cost of a firm's retained earnings is less than the cost of its bonds.
D. The cost of a firm's common stock is greater than the cost of its bonds.
16. The approach to capital budgeting which divides an accounting measure of income by an
accounting measure of investment is
A. Accounting rate of return. C. Internal rate of return.
B. Payback method. D. Net present value.
17. The capital budgeting method which calculates the expected monetary gain or loss from a
project by discounting all expected future cash inflows and outflows to the present point in
time using the required rate of return is the
Page 20 of 25
A. payback method. C. Accounting rate-of-return method.
B. Benefit cost ratio methods. D. Net present value method.
18. The method that measures the time it will take to recoup, in the form of future cash inflows,
the total dollars invested in a project is called
A. Accounting rate-of-return method. C. Payback method.
B. Internal rate-of-return method. D. Net present value method.
19. Which of the following is an appropriate term for the required rate of return?
A. Discount rate B. Hurdle rate C. Cost of capital D. All of the above
20. In capital budgeting, a project is accepted only if the internal rate of return
A. Equals or exceeds the required rate of return.
B. Equals or is less than the required rate of return.
C. Equals or exceeds the net present value.
D. Equals or exceeds the accrual accounting rate of return.
21. The focal point of financial management in a firm is:
A. the number and types of products or services provided by the firm.
B. the minimization of the amount of taxes paid by the firm.
C. the creation of value for shareholders.
D. the dollars profits earned by the firm
22. A would be an example of a principal, while a would be an example
of an agent.
A. shareholder; manager B. manager; owner
C. accountant; bondholder D. shareholder; bondholder
23. _____and ___ are the two versions of goals of the financial management of the firm.
A. Profit maximization, Wealth maximization
B. Production maximization, Sales maximization
C. Sales maximization, Profit maximization
D. Value maximization, Wealth maximization
24. Which of the following would NOT improve the current ratio?
A. Borrow short term to finance ad ክፈት / አስተያየት ይስጡ

2023-06-27 14:24:38 of ክፈት / አስተያየት ይስጡ

2023-06-27 14:24:37 Page 16 of 25
A. 800 units B. 920 units C. 1,000 units D. 200 units E.1,200 units
28. The cost per equivalent units is
A. Br. 50.32 B.Br. 50 C. Br. 0.50 D. Br. 10 E.Br.40
29. The labor costs embodied in the goods transferred out amount to
A. Br. 40,000 B. Br. 50,000 C. Br. 10,000 D. Br. 40,256 E. None
30. The labor cost embodied in the ending work in process is
A. Br.1000 B. Br. 10,000 C. 50,000 C. 40,000 D. Br. 10,064 E. None
Please use Forming Department of Nice Company information given above and additional
shown below & answer question No.31-34
Additional information
Beginning WIP costing method ………………………FIFO
Stage of completion for beginning WIP……………… 80%
31. Equivalent units of production as per of labor is
A. 840 units B. 920 units C. 1000 units D. 200 units E.800 units
32. The cost per equivalent units is
A. Br. 50 B.Br. 48 C. Br. 0.50 D. Br. 10 E.Br.40
33. The labor costs embodied in the goods transferred out amount to
A. Br. 40,000 B. Br. 1,920 C. Br30, 720 D. Br. 28,800 E. None
34 The labor cost embodied in the ending work in process is
A. Br.1000 B. Br. 10,000 C. 50,000 D. 9,600 D. Br. 32,000
Given:- Data Chemical Company Joint products are named Release & Buff. The following
information relating to quantity produced and sales of the product. Common Cost of the period
assumes Br. 81,700. Based on the given information answer question 35 & 36
Product Units in terms of
gallons
Sales Per Unit Total Sales Value
Release 128,000 Br.0.60 Br. 76,800
Buff 62,000 0.80 49,600
Total sales value 190,000 gallons Br. 126,400
35. If common cost allocation made based on physical units & then manufacturing cost of
Release & Buff respectively is
A. Br. 0.43 per gallons C. Br. 26,660 & Br. 55,040
B. Br. 55,040 & Br. 26,660 in total D. A & B E. None of the above
36. If common cost allocation made based on Relative Sales Value & then manufacturing cost of
Release & Buff respectively is
A. Br. 49,640.50 & Br. 32,059.50 C. Br. 26,660 & Br. 55,040
B. Br. 55,040 & Br. 26,660 in total D. Br.32, 059.50 & Br. 49,640 E. None of the above
37. Job Order Costing System characterized by the following except
A. products are manufactured based on customer specification
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C. Decrease the current ratio and increase the acid-test ratio.
D. Decrease the current ratio and decrease the acid-test ratio.
3. ABC Corporation has a current ratio of 3.2. Which of the following transactions will increase
ABC's current ratio?
A. The purchase of inventory for cash. C. The collection of an account receivable.
B. The payment of an account payable. D. none of the above.
4. The true owners of the corporation are the:
A. holders of debt issues of the firm. C. preferred stockholders.
B. board of directors of the firm. D. common stockholders.
5. Which of the following involves significant financial investments in projects to develop
new products, expand production capacity, or remodel current production facilities?
A. Capital budgeting B. Working capital
C. Master budgeting D. Project-cost budgeting
6. Whenever evaluating two capital projects, which one of the following decision rules is
accepted?
A. The project with longer payback period.
B. The project with lower accounting rate of return.
C. The project with positive and higher NPV.
D. The project with less than 1 Profitability index.
7. You are investing $1 today in a savings account at your local bank. Which one of the
following terms refers to the value of this investment one year from now?
A. Future value C. Present value
B. Principal amounts D. Discounted value
8. Which of the following statements is correct?
A. The cash flows for an ordinary annuity all occur at the beginning of the periods.
B. If a series of unequal cash flows occurs at regular intervals, such as once a year, then the
series is by definition an annuity.
C. The cash flows for an annuity due must all occur at the ends of the periods.
D. The cash flows for an annuity must all be equal, and they must occur at regular intervals.
9. You plan to analyze the value ክፈት / አስተያየት ይስጡ