Which equation represents the relationship between beginning capital, investments, and ending capital? BCap + Inv = COW + Nl - Nl - D = ECap Sales - COGS = Gross Profit Assets = Liabilities + Capital Beg. Supp. + Bought = End Supplies

BCap + Inv = COW + Nl - Nl - D = ECap

How do you calculate the ending supplies using the beginning supplies and purchases? Beg. Supp. + Bought - Used = End Supplies Beg. Supp. + Bought = End Supplies Beg. Supp. - Used = End Supplies Beg. Supp. + Bought = Supp. On TB (SOT) = End Supplies

Beg. Supp. + Bought = Supp. On TB (SOT) = End Supplies

What formula is used to determine the ending supplies after usage? BSupp. + Bot = SOT - Used = ESupp Beg. Supp. + Bought = End Supplies Beg. Supp. + Bought - Used = End Supplies Beg. Supp. - Used = End Supplies

BSupp. + Bot = SOT - Used = ESupp

How is the ending prepaid insurance calculated from the beginning balance and purchases? Beg. PPInsurence - Used = End Supplies Beg. PPInsurence + Bought = End Supplies Beg. PPInsurence + Bought = PPI On TB (POT) = End Supplies Beg. PPInsurence + Bought - Used = End Supplies

Beg. PPInsurence + Bought = PPI On TB (POT) = End Supplies

What is the formula for calculating ending prepaid insurance after usage? Beg. PPInsurence - Used = End Supplies Beg. PPInsurence + Bought - Used = End Supplies Beg. PPInsurence + Bought = End Supplies B-PPI + BOT = POT - Used =E-PPI

B-PPI + BOT = POT - Used =E-PPI

Which formula represents the calculation of Cost of Goods Sold (COGS)? Beg. Inventory + Purchases - End Inventory = COGS Pur. + TI = CODG - PD - PRA = NP +BI = COGA - EI = COGS Sales - Expenses = Net Income Sales - COGS = Gross Profit

Pur. + TI = CODG - PD - PRA = NP +BI = COGA - EI = COGS

How is net income calculated from sales and expenses? Sales - Expenses = Net Income Sales - COGS - Expenses = Net Income Sales - COGS = Gross Profit Sales - SD - SRA = NS - COGS = GP - Exp = NI

Sales - SD - SRA = NS - COGS = GP - Exp = NI

What is the formula for reconciling a bank statement balance with outstanding checks and deposits in transit? BK Bal on Stmt + Dep in Transit - O/S Checks = Rec. Balance Bank Bal + Deposits - Checks = Reconciled Balance CkBk Bal on Stubs - Bank Chgs +/- Check Adj. = Rec. Bal. Bank Bal - Outstanding Checks + Deposits = Reconciled Balance

BK Bal on Stmt + Dep in Transit - O/S Checks = Rec. Balance

How do you reconcile a checkbook balance with bank charges and adjustments? CkBk Bal on Stubs - Bank Chgs +/- Check Adj. = Rec. Bal. BK Bal on Stmt + Dep in Transit - O/S Checks = Rec. Balance Checkbook Bal - Bank Fees + Adjustments = Reconciled Balance Checkbook Bal + Deposits - Checks = Reconciled Balance

CkBk Bal on Stubs - Bank Chgs +/- Check Adj. = Rec. Bal.

The Weighted Average Cost is calculated by dividing the Cost of Goods Available for Sale by _____. Net Income Number of Goods Available for Sale Total Sales Average Inventory

Number of Goods Available for Sale

What is the equation for calculating the units to produce in a production budget? Units to produce = Budgeted sales units - Beginning inventory + Desired ending inventory Units to produce = Budgeted sales units + Desired ending inventory - Beginning inventory Units to produce = Budgeted sales units + Beginning inventory - Desired ending inventory Units to produce = Budgeted sales units - Desired ending inventory + Beginning inventory

Units to produce = Budgeted sales units + Desired ending inventory - Beginning inventory

How do you calculate the total required units in a production budget? Total Required Units = Budgeted Sales units - Beginning inventory units Total Required Units = Budgeted Sales units + Desired ending inventory units Total Required Units = Budgeted Sales units - Desired ending inventory units Total Required Units = Budgeted Sales units + Beginning inventory units

Total Required Units = Budgeted Sales units - Desired ending inventory units

What does a production budget show in terms of units to produce? The units to produce each period to meet budgeted sales and a desired inventory level The total cost of production for each period The expected profit from sales for each period The cash flow requirements for each period

The units to produce each period to meet budgeted sales and a desired inventory level

What is the equation for calculating materials to purchase in a direct material budget? Materials to purchase = (Units to Produce x Materials Required per Unit) - Beginning inventory + Desired ending inventory Materials to purchase = (Units to Produce x Materials Required per Unit) + Beginning inventory - Desired ending inventory Materials to purchase = (Units to Produce x Materials Required per Unit) + Desired ending inventory - Beginning inventory Materials to purchase = (Units to Produce x Materials Required per Unit) - Desired ending inventory + Beginning inventory

Materials to purchase = (Units to Produce x Materials Required per Unit) + Desired ending inventory - Beginning inventory

How do you calculate the cost of direct labor in a direct labor budget? Cost of direct labor = Direct Labor Hours Required Per Unit x Direct Labor Cost per Hour Cost of direct labor = Units to Produce x Direct Labor Cost per Hour Cost of direct labor = Units to Produce x Direct Labor Hours Required Per Unit Cost of direct labor = Units to Produce x Direct Labor Hours Required Per Unit x Direct Labor Cost per Hour

Cost of direct labor = Units to Produce x Direct Labor Hours Required Per Unit x Direct Labor Cost per Hour

How do fixed costs behave when the volume changes within a relevant range? Total fixed costs increase, but fixed cost per unit remains constant Total fixed costs decrease, but fixed cost per unit increases Total fixed costs and fixed cost per unit both remain constant Total fixed costs do not change, but fixed cost per unit decreases as volume increases

Total fixed costs do not change, but fixed cost per unit decreases as volume increases

How do variable costs change with the volume of activity? They increase at a decreasing rate as volume increases They remain constant regardless of changes in volume They change in proportion to changes in volume of activity They decrease as volume increases

They change in proportion to changes in volume of activity

What are mixed costs and how do they behave? Costs that decrease as volume increases Costs that are entirely variable and change directly with volume Costs that have both a fixed and a variable component, greater than zero when volume is zero, and increase steadily with volume Costs that are entirely fixed and do not change with volume

Costs that have both a fixed and a variable component, greater than zero when volume is zero, and increase steadily with volume

Which of the following are examples of fixed costs? Rent, Property taxes, Insurance, Office salaries, Depreciation Sales rep (salary + commission), Natural gas, Maintenance, Electricity, Water Direct materials, Direct labor, Packaging, Shipping, Indirect materials Advertising, Research and development, Training, Travel, Entertainment

Rent, Property taxes, Insurance, Office salaries, Depreciation

Which of the following are examples of variable costs? Rent, Property taxes, Insurance, Office salaries, Depreciation Direct materials, Direct labor, Packaging, Shipping, Indirect materials Advertising, Research and development, Training, Travel, Entertainment Sales rep (salary + commission), Natural gas, Maintenance, Electricity, Water

Direct materials, Direct labor, Packaging, Shipping, Indirect materials

What is the formula for calculating working capital? Current Assets - Current Liabilities Net Income - Expenses Revenue - Expenses Total Assets - Total Liabilities

Current Assets - Current Liabilities

What is the formula for calculating the current ratio? Total Assets / Total Liabilities Current Assets / Current Liabilities Cash Flow / Total Debt Net Income / Total Revenue

Current Assets / Current Liabilities

What is the formula for calculating the gross profit margin according to GAAP? \[ rac{ ext{Net Profit}}{ ext{Equity}} imes 100 \] \[ rac{ ext{Operating Income}}{ ext{Net Sales}} imes 100 \] \[ rac{ ext{Net Income}}{ ext{Total Assets}} imes 100 \] \[ rac{ ext{Gross Profit}}{ ext{Sales Revenue}} imes 100 \]

\[ rac{ ext{Gross Profit}}{ ext{Sales Revenue}} imes 100 \]

How is the operating income margin calculated? \[ rac{ ext{Operating Income}}{ ext{Net Sales}} \] \[ rac{ ext{EBITDA}}{ ext{Net Sales}} \] \[ rac{ ext{Gross Profit}}{ ext{Net Sales}} \] \[ rac{ ext{Net Income}}{ ext{Net Sales}} \]

\[ rac{ ext{Operating Income}}{ ext{Net Sales}} \]

What is the formula for calculating the effective tax rate? \[ rac{ ext{Net Income}}{ ext{Total Revenue}} \] \[ rac{ ext{Gross Profit}}{ ext{Net Sales}} \] \[ rac{ ext{Income Tax Expense}}{ ext{Pretax Income}} \] \[ rac{ ext{Operating Income}}{ ext{Total Assets}} \]

\[ rac{ ext{Income Tax Expense}}{ ext{Pretax Income}} \]

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