Finance Questions

Which of the following statements is CORRECT?a. Due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of U.S. businesses (in terms of number of businesses) are organized as corporations.b. Most businesses (by number and total dollar sales) are organized as proprietorships or partnerships because it is easier to set up and operate in one of these forms rather than as a corporation. However, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships.c. Due to legal considerations related to ownership transfers and limited liability, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' less favorable tax treatment.d. Large corporations are taxed more favorably than sole proprietorships.e. Corporate stockholders are exposed to unlimited liability.

Payments for direct materials, direct labor, and manufacturing overhead costs are all listed in the ____ section of the cash budget:

Which of the following is an example of a capital market instrument?a. Commercial paper.b. Preferred stock.c. U.S. Treasury bills.d. Banker's acceptances.e. Money market mutual funds.

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?a. Corporations generally face fewer regulations.b. Less of a corporation's income is generally subject to taxes.c. Corporate shareholders are exposed to reduced liability, but this factor is offset by the tax advantages of incorporation.d. Corporate investors are exposed to unlimited liability.e. Corporations generally find it easier to raise capital.

Which of the following statements is CORRECT?a. One drawback of forming a corporation is that it subjects the firm to additional regulations.b. One drawback of forming a corporation is that it subjects the firm's investors to increased personal liabilities.c. One drawback of forming a corporation is that it makes it more difficult for the firm to raise capital.d. One advantage of forming a corporation is that it subjects the firm's investors to fewer taxes.e. One disadvantage of forming a corporation is that this makes it more difficult for the firm's investors to transfer their ownership interests.

A budgeted balance sheet is developed using data from the ____ of the budget period and data contained in the various schedules:

The underlying idea behind ____ accounting is that a manager should be held accountable for only those items the manager can actually control:

The section on the cash budget that summarizes all cash payments that are planned for the budget period is the cash ____ section:

Which of the following is needed to calculate raw materials to be purchased on the direct materials budget:

Which of the following types of budgets keep managers focused one year ahead, so they do not become too narrowly focused on short-term results:

Which of the following is not found in the financing section of the cash budget:

Developing goals and preparing various budgets to achieve those goals is part of the ____ process:

What is usually the major source of receipts in the receipts section of the cash budget:

What is subtracted from total budgeted selling and administrative expenses to determine the case disbursements for selling and administrative expenses:

To calculate total sales on the sales budget, multiply budgeted sales in units by:

Carter Production Inc required production for the first six month of the year is as followsJan- 50,000Feb- 70,000Mar- 85,000Apr- 105,000May- 110,000Jun- 120,000Each unit requires two pounds of material. Given a desired ending inventory of 20% of the next month's production needs, the pounds of material to be purchased in April is:

A company's planned net profit that serves as a benchmark against which subsequent company performance can be measured is shown in the budgeted ____ ____:

Spot Company's master budget shows expected sales of 10,000 units and expected production of 11,000 units for the month of March. Each unit requires 1/2 hour of direct labor. The direct labor rate is $15.00 per hour. Calculate the expected total direct labor cost for the month of March:

Collections on credit sales made to customers in prior periods plus collections on sales made in the current budget period equals expected ____ collections:

An essential management tool that communicates management's plans throughout the organization, allocates resources, and coordinates activities is called the _____ budget: