Quiz | Accounting homework help

 

Question 1
You invested $5,000 in the Cog corporation and $5,000 in the Gear corporation. Both of these corporations have $100 million in total assets. The Cog corporation had a net profit of $5 million and the Gear corporation had a net profit of $10 million. You read their annual reports and both companies had established a goal of having net profit equal to 10% of total assets. Which of the following statements is true regarding these 2 firms?

Cog is effective and more efficient than Gear

Cog is effective but less efficient than Gear

Gear is effective and more efficient then Cog

Gear is effective but less efficient than Cog

cannot tell without more information

 

Question 2

Sam quit his job as an accountant with We Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $190,000 and total expenses of $110,000. Sam earned an

accounting profit of $40,000.

Accounting profit of $80,000 and an entrepreneurial profit of $40,000

Entrepreneurial profit of $80,000, but an accounting of $40,000

Entrepreneurial profit of $80,000

Cannot tell from the information provided

 

 

 

Question 3

Sam quit his job as an accountant with We Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year Sam had revenues of $150,000 and total expenses of $110,000. For Sam the opportunity cost of going into business was

$40,000.

$110,000

$150,000

Zero because he has a profitable business.

 

Question 4

All of the costs that a firm must pay, even if there are no sales, are

contribution costs.

Fixed costs.

Variable costs.

Sales cost.

 

 

 

Question 5

Table 5-1. Steel Shelf Company

Category Cost                        Payment Period          Cost

Rent                            Monthly                      $ 3,000

Utilities                        Monthly                      1,100

Insurance                    Quarterly                    1,200

Property Taxes           Annually                     6,000

Steel                            Per Shelf                     9.00

Forming                      Per Shelf                     0.25

Labor                          Per Shelf                     0.75

Price                            Per Shelf                     20.00

Refer to Table 5-1. The Steel Shelf company has variable costs per unit of ________ .

$10.00

$18.33

$20.00

$25.00

$30,00

 

Question 6

Table 5-1. Steel Shelf Company

Category Cost                        Payment Period                      Cost

Rent                            Monthly                                  $ 3,000

Utilities                        Monthly                                  1,100

Insurance                    Quarterly                                1,200

Property Taxes           Annually                                 6,000

Steel                            Per Shelf                                 9.00

Forming                      Per Shelf                                 0.25

Labor                          Per Shelf                                 0.75

Price                            Per Shelf                                 20.00

Refer to Table 5-1. The Steel Shelf company has monthly fixed costs of _____ and a contribution margin of _____.

$5,000; $10

$5,000; $20

$5,800; $10

$11,300; $10

$11,300; $20

 

Question 7

Refer to Table 5-1. The Steel Shelf company has a monthly break-even quantity of _____ shelves.

250

500

580

1,130

 

Cannot calculate with information provided

 

Question 8

Refer to Table 5-1. If the Steel Shelf Company wants to earn a profit of $3,000 per month they will have to produce _____ shelves.

500

800

1,000

1,500

 

Question 9

 

Refer to Table 5-1. The Steel Shelf company has annual fixed costs of ________ .

$5,300

$56,400

$60,000

$69,600

$135,600
2 points

 

 

 

Question 10

 

The Steel Shelf Company has to have annual revenue of _____ in order to break even.

$10,000

$120,000

$69,600

$135,600

 

Cannot calculate with information provided

 

 

 

Question 11

 

The earning power of a company can be defined as the product of 2 factors:

 

Fixed asset turnover and cash flow per share

 

Net profit margin and fixed asset turnover.

Net profit margin and total asset turnover.

Total asset turnover and earnings per share.

 

 

 

 

 

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