Acct 526 Midterm Study Guide Questions And Correct Answers

Period Costs {Ans: Identify: Supplies for the general office}True {Ans: If a firm is experiencing cash flow problems, acquiring it could lead to greater future costs.}d. goods that are partially completed {Ans: The Work-in-Process Inventory account includes: a. goods that have been sold in the market b. goods that are ready to be sold c. goods that are returned by customers d. goods that are partially completed}c. outflow of $100,000. {Ans: Silver Trading Corp. recorded a net income of $200,000 for the year 20X1. For the same period, the company purchased land for $150,000. It sold some of its long term investments for $50,000 during the period. The company also recorded a depreciation of $10,000 on its equipment. Considering the above transactions, Silver's net cash flows from investing activities for the year would be an: a. inflow of $200,000. b. inflow of $50,000. c. outflow of $100,000. d. outflow of $150,000.}a. $120,000 Sales Revenue - Variable expenses = 20,000 (10-4) {Ans: Cinder Block industries currently produces and sells 20,000 units of product at a selling price of $10. The product has variable costs of $4 per unit and a fixed cost of $50,000. The company