Online Access Free Accounting-for-Decision-Makers Practice Test

What are the costs associated with two or more business units called?

• A.Indirect costs
• B.Product costs
• C.Direct costs
• D.Variable costs

The following list provides partial financial information for a company.
Financial Category | 20X3 | 20X2
Net income | $3,540 | ?
Cash from operations | $4,417 | ?
Cash paid for capital expenditures | $5,613 | ?
Cash paid for acquisitions | $5,964 | ?
Cash paid for interest | $2,782 | ?
Cash paid for income taxes | $2,860 | ?
What is the cash flow to net income ratio for this company in 20X2?

• A.2.45
• B.1.35
• C.1.80
• D.-0.01

A company's statement of cash flows includes the following cash transactions.
Sales = $1,250,000
Inventory purchase = -$750,000
Property and equipment purchase = -$280,000
Interest payment on long-term debt = -$25,000
Payment of wages = -$315,000
Payment of rent = -$40,000
Borrowing long-term debt = $200,000
Payment of cash dividends = -$15,000
Repurchase of treasury stock = -$40,000
Total cash flows = -$5,000
What is the total cash flow from investing activities?

• A.-$310,000
• B.-$55,000
• C.-$280,000
• D.-$325,000

A company manufactures and sells widgets. The following information is available:
* Total fixed costs per month are $300,000
* The variable cost per widget is $50
* Each widget sells for $100
How many widgets does the company need to sell each month to break even?

• A.3,000
• B.6,000
• C.2,000
• D.4,500

Which user group of financial statements evaluates the ability to repay loans?

• A.Lenders
• B.Investors
• C.Suppliers
• D.Management