1. Early in 2010, Larsen Corporation purchased marketable securities at a cost of $90,000. In September, dividends of $6,600 were received; Larsen sold the securities in December at a gain of $5,600. How would these transactions be reported on Larsen's statement of cash flows for 2010?

A.	$5,600 net cash provided by investing activities; $6,600 included in cash provided by operating activities.
B.	$12,200 net cash provided by investing activities.
C.	$95,600 cash provided by investing activities; $90,000 cash used in financing activities.
D.	$84,400 net cash used in investing activities; $95,600 cash provided by investing activities.

2. Haven Corporation issued $700,000 of 10-year bonds payable at par in 2005. During 2009 Haven paid $50,000 interest and an additional $233,333 to retire one-third of the bonds at par. These activities would be reported in Haven's statement of cash flows for 2009 as:

A.	$283,333 net cash provided by financing activities.
B.	$283,333 net cash used in financing activities.
C.	$233,333 net cash used in financing activities, and $50,000 cash disbursed for operating activities.
D.	$466,667 net cash provided by financing activities, and $50,000 cash disbursed for operating activities.

3. The completion of a computer by First Wireless, Inc. would require a debit to which of the following accounts?

A.	Cost of Goods Sold.
B.	Work in Process Inventory.
C.	Finished Goods Inventory.
D.	Materials Inventory.

4. If manufacturing overhead is materially over-applied, it is best to close it to:

A.	Work-in-process inventory.
B.	Finished goods inventory.
C.	Cost of goods sold.
D.	Apportioned among work-in-process, finished goods, and cost of goods sold.

5. Which of the following would likely be the most appropriate cost driver to allocate machinery set-up costs to products?

A.	Machine hours.
B.	Direct labor hours.
C.	Number of production runs.
D.	Repair work orders.

6. Manufacturing overhead is not:

A.	A product cost.
B.	An indirect cost.
C.	A manufacturing cost.
D.	A period cost.

7. An effective cost accounting system should match processes with the _____ used in order to maintain competitive advantage. Select the best answer to complete the sentence.

A.	sales
B.	shareholders
C.	resources
D.	disbursements

8. Which of the following is not a characteristic of a process costing system?

A.	The costs incurred in each process are accumulated in separate Work-in-Process Inventory accounts.
B.	It is suitable for mass-produced operations.
C.	Costs are accumulated separately for each unit of production as it moves through the factory.
D.	The cost of a finished unit is the sum of the unit costs of performing each manufacturing process.

9. Per-unit costs:

A.	Are relevant only when a company is engaged in manufacturing activities.
B.	Are determined in job order costing systems but cannot be computed when a process costing system is in use.
C.	Are relevant in manufacturing, merchandising, and service industries, regardless of the type of cost accounting system in use.
D.	Are determined by relating manufacturing costs to the number of units sold.

10. Process costing systems:

A.	Are used when companies produce homogeneous units.
B.	Does not have work-in-process accounts for each department.
C.	Does not use equivalent units of production.
D.	Track costs to individual products.