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A master budget is most useful in evaluating a manager's performance
in controlling costs.
Question 17
The master budget reflects management's long-term plans
encompassing five years or more.
Question 18
The debt to assets ratio measures the percentage of the total assets
provided by creditors
Question 19
A company whose current liabilities exceed its current assets may have
a liquidity problem.
Question 20
During 2014, Phelps Corporation reported net sales of $3,000,000, net
income of $1,320,000, and depreciation expense of $80,000. Phelps
also reported beginning total assets of $1,000,000, ending total assets
of $1,500,000, plant assets of $800,000, and accumulated depreciation
of $500,000. Phelpsâs asset turnover ratio is
Final Part 2
Question 1
A manager of a cost center is evaluated mainly on
Question 2
Bogey Co. recorded operating data for its Cheap division for the year.
Bogey requires its return to be 10%.
Sales
Controllable margin
Total average assets
$ 1,400,000
160,000
4,000,000