Principles of Accounting II- Please answer these questions and explain how to answer them so that way I can understand and reread the chapter again and compare them to my answers if I answer them right or not.
Question 1 Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $720,000 in service revenue. Their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. If operating expenses for the year were $302,000 what was their net income? Answer: Explanation: Question 2 Define each of these users of accounting information as an internal user of external user: A. Management B. Employees C. Investors D. Creditors E. Customers F. Tax authorities Answer: 1. 2. 3. Explanation: Question 3 Managerial accounting reports are prepared according to GAAP prepared according to management needs prepared periodically only related to the entire business entity only Question 4 The following are some of the costs incurred by Cupcake Company. Identify them as either: Sprinkles for decoration (indirect material) Salesman commissions Baker’s wages Depreciation expense—factory Frosting Factory rent Depreciation expense—office Cupcake mix 1. Prime costs 2. Conversion costs 3. Both prime and conversion costs 4. Neither prime or conversion costs Question 5 Managerial accounting provides useful information to managers on product costs. True False Explanation: Question 6 A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true? The company will recognize sales on the balance sheet of $150,000. The company will recognize $96,000 gross profit on the balance sheet. The company will decrease finished goods by $54,000. The company will increase finished goods by $54,000. Question 7 Managerial accounting uses only past data in reports to aid management in the decision making process. True False Question 8 What term refers to the cost of changing direct materials into a finished manufactured product? factory overhead cost period cost conversion cost direct labor cost Question 9 In most business organizations, the chief accountant is called the treasurer. True False Question 10 A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was $218,000 $226,000 $190,000 $222,000 Explanation: