The 'Accounting Test: Test your GK!' challenges your knowledge in budgeting, fiscal planning, and selling expenses calculation. It assesses key financial competencies crucial for effective management and accounting practices.
Continuous budgeting
Zero-based budgeting
Master budgeting
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183,750
182,100
223,100
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230,600
196,100
189,500
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7,000
6,900
7,200
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1,080,000 for A; 648,000 for B
1,125,000 for A; 675,000 for B
1,170,000 for A; 702,000 for B
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Cash budget
Sales budget
Production budget
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7,100
7,200
6,900
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23,800
20,200
1,800
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1,800
23,800
22,000
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270,000
250,000
230,000
Improving overall decision making by considering all viewpoints, options, and cost reduction possibilities
Directing and coordinating operations during the period
Requiring all organizational units to establish their goals for the upcoming period
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Start with a clean slate
Cannot be used by service companies
Do not show possible changes in underlying activity levels
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Variable budget
Flexible budget
Activity budget
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234,000 lbs of A; 39,000 lbs of B
225,000 lbs of A; 37,500 lbs of B
216,000 lbs of A; 36,000 lbs of B
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1,080,000 for A; 648,000 for B
1,170,000 for A; 702,000 for B
1,125,000 for A; 675,000 for B
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240,000
192,000
134,400
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294,000
336,000
304,800
183,200
188,800
14,600
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Machinery and other fixed assets wear out
Expansion may be necessary to meet increased demand
Amounts spent for office equipment may be immaterial
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Cash payback method
Average rate of return
Net present value
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Has time value
Is the language of business
Has an international rate of exchange
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Internal rate of return and average rate of return
Average rate of return and cash payback method
Net present value and average rate of return
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Cash payback method
Internal rate of return method
Average rate of return method
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It emphasizes the amount of income earned over the life of the proposal
It is especially useful to managers whose primary concern is liquidity
Rankings of proposals are necesssary
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9%
18%
15%
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10,800
5,400
21,600
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5 years
3 years
4 years
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Average rate of return
Internal rate of return
Accounting rate of return
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Past value methods
Straight-line methods
Methods that ignore present value
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13,660
12,720
10,400
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12.5%
40%
25%
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Positive, $19,875
Negative, $19,875
Positive, $118,145
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1.25
1.05
.95
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2.4%
2%
14%
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Manufacturing sunk cost
Manufacturing flexibility
Manufacturing control
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Changes in price levels
The leasing alternative
Sunk cost
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Depreciation deduction
Minimum tax provision
Interest deduction
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Ignore the useful lives of six and nine years and find an average (7 1/2 years)
Adjust the life of proposal J to a time period that is equal to that of Proposal F by estimating a residual value at the end of year 6
Ignore the useful lives of six and nine years and compute the average rate of return
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