Accounting for Business Leaders
Practice Questions
Course Introduction
Accounting for Business Leaders provides an essential foundation in financial and managerial accounting principles, with a focus on their application in strategic decision-making and leadership. Students will learn how to interpret financial statements, analyze costs, and utilize accounting information to make informed business choices. Through case studies and real-world scenarios, the course highlights the role of accounting in budgeting, performance evaluation, and risk management, empowering future business leaders to drive organizational success using financial insight.
Recommended Textbook
Managerial Accounting 2nd Edition by Karen W. Braun
Available Study Resources on Quizplus
14 Chapters
2698 Verified Questions
2698 Flashcards
Source URL: https://quizplus.com/study-set/3504 Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69606
Sample Questions
Q1) The IMA is the professional association for managerial accountants.
A)True
B)False
Answer: True
Q2) Managerial accountants may be responsible for:
A)analyzing data.
B)communicating results.
C)providing decision support.
D)all of the above.
Answer: D
Q3) Which of the following is NOT one of the primary responsibilities of management?
A)Controlling
B)Decision-making
C)Adhering to GAAP
D)Directing
Answer: C
Q4) The CMA designation is issued by the IMA.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Building Blocks of Managerial Accounting
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/69605
Sample Questions
Q1) What is the total cost for the production category of the value chain?
A)$538,000
B)$52,000
C)$207,000
D)$374,000
Answer: C
Q2) Conversion costs for Comfy Furniture Company totaled:
A)$ 319,500.
B)$ 460,500.
C)$ 214,000.
D)$ 384,500.
Answer: D
Q3) Service companies have the simplest accounting with regard to the income statement.
A)True
B)False
Answer: True
Q4) How are average cost and marginal cost computed?
Answer: The average cost is the total cost divided by the number of units produced.Marginal cost is the cost of making one more unit.
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Job Costing
Available Study Resources on Quizplus for this Chatper
260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/69604
Sample Questions
Q1) The bill of materials lists of all of the raw materials needed to manufacture the job.
A)True
B)False
Answer: True
Q2) The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead estimated for the year.
A)True
B)False
Answer: False
Q3) Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Activity-Based Costing, lean Production, and the Costs of Quality
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/69603
Sample Questions
Q1) The cost to research and develop,design and market new models would be considered a unit- level cost.
A)True
B)False
Q2) The cost of depreciation,insurance,and property tax on the entire production plant would be considered a unit-level cost.
A)True
B)False
Q3) It is easier to allocate indirect costs to the products that caused those costs if you use the ABC system rather than traditional costing systems.
A)True
B)False
Q4) Activity-based management refers to using activity-based cost information to make decisions that may increase profits while satisfying customers' needs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Process Costing
Available Study Resources on Quizplus for this Chatper
224 Verified Questions
224 Flashcards
Source URL: https://quizplus.com/quiz/69602
Sample Questions
Q1) What are the total equivalent units for direct materials?
A)4,000
B)3,200
C)11,200
D)12,000
Q2) In a particular department,5,000 units were started and all but 600 were completed at the end of the period.These 600 were 70% complete for materials and 45% for conversion costs.Costs added were $52,300 for materials and $53,500 for conversion costs.What is the total number of equivalent units for direct materials?
A)5,420
B)4,670
C)4,820
D)4,400
Q3) What are the total equivalent units for conversion costs?
A)124,270
B)138,700
C)124,035
D)128,710
To view all questions and flashcards with answers, click on the resource link above.
7
Chapter 6: Cost Behavior
Available Study Resources on Quizplus for this Chatper
266 Verified Questions
266 Flashcards
Source URL: https://quizplus.com/quiz/69601
Sample Questions
Q1) What would her operating income be if she prepared a traditional income statement for a month?
A)$13,500
B)$5,400
C)$8,100
D)$7,300
Q2) If a contribution margin income statement is prepared for the year,what is the contribution margin?
A)$ 70,000
B)$180,000
C)$250,000
D)$320,000
Q3) What is the fixed cost (round to nearest cent)?
A)$2,413.21
B)$ 0.90
C)$ 143.98
D)$ 0.98
Q4) Cost behavior can be mathematically expressed using equations. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/69600
Sample Questions
Q1) The margin of safety percentage for Veron Corporation is:
A)12.50%.
B)93.56%.
C)112.50%.
D)87.50%.
Q2) When using the contribution margin ratio,managers project operating income based upon sales units.
A)True
B)False
Q3) The lowest possible operating leverage factor for a company is:
A)zero.
B)+ 1.
C)- 1.
D)somewhere between zero and +1.
Q4) The fixed expenses for this company are:
A)indirect materials,indirect labor,and depreciation.
B)depreciation,office salaries,and advertising.
C)direct materials,direct labor,and depreciation.
D)sales salaries,office salaries,and advertising.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Short Term Business Decisions
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/69599
Sample Questions
Q1) Fixed costs that continue to exist even after a product line is dropped are called:
A)avoidable fixed costs.
B)unavoidable fixed costs.
C)variable fixed costs.
D)relevant fixed costs.
Q2) What would be the effect on operating income of accepting a special order for 2,000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $7,000 are incurred?
A)Decrease by $5,000
B)Decrease by $2,000
C)Increase by $5,000
D)Increase by $2,000
Q3) In deciding whether to accept a special sales order,any fixed costs that would remain unchanged are considered irrelevant data.
A)True
B)False
Q4) What will Burr Hill's expected profit shortfall be if it charges $65/round?
Q5) What will Burr Hill's revenue be at a market price of $65/round?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: The Master Budget and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/69598
Sample Questions
Q1) Budgets provide benchmarks that help managers evaluate performance.
A)True
B)False
Q2) Merchandising companies prepare all of the following budgets EXCEPT:
A)sales.
B)operating expense.
C)cost of goods sold,inventory and purchases.
D)direct materials.
Q3) Artwell Company wants to have an ending inventory of 7,000 units.Artwell Company has beginning inventory of 8,000 units and expects to sell 33,000 units.How many units should Artwell Company produce?
A)48,000
B)40,000
C)34,000
D)32,000
Q4) Define operating budgets and financial budgets.List the specific budgets which are operating budgets.List the specific budgets which are financial budgets.
Q5) List and describe three reasons why a company and its managers could benefit from the use of budgeting.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Flexible Budgets and Standard Costs
Available Study Resources on Quizplus for this Chatper
204 Verified Questions
204 Flashcards
Source URL: https://quizplus.com/quiz/69597
Sample Questions
Q1) Which of the following is a carefully predetermined cost that is usually expressed on a per unit basis?
A)Allocated cost
B)Applied cost
C)Flexible cost
D)Standard cost
Q2) Which budget is best for managers to use to plan revenues and expenses at different sales volumes?
A)Capital budget
B)Flexible budget
C)Static budget
D)Master budget
Q3) Journalize the purchase and usage of direct materials including the related variances.
Q4) What is the direct labor efficiency variance for the month?
A)$ 13,650 favorable
B)$ 13,650 unfavorable
C)$ 24,000 favorable
D)$ 24,000 unfavorable
Q5) Identify five benefits of standard costs.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Performance Evaluation and the Balanced Scorecard
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/69596
Sample Questions
Q1) List the four areas of a balanced scorecard.Describe each area.Define "key performance indicator" (KPI).Give an example of a KPI for each balanced scorecard area
Q2) When calculating Economic Value Added (EVA),the weighted average cost of capital replaces the target Return on Investment (ROI)as the expected rate of return.
A)True
B)False
Q3) Residual income is used in the denominator when calculating ROI.
A)True
B)False
Q4) Decentralization allows top management to hire workers with expert knowledge for each business unit.
A)True
B)False
Q5) Performance evaluation systems provide top management with a framework for maintaining control over the organization.
A)True
B)False
Q6) Discuss potential problems associated with decentralization.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Capital Investment Decisions and the Time
Value of Money
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/69595
Sample Questions
Q1) You win the lottery and must decide how to take the payout.Use an 8% discount rate. What is the present value of $10,000 a year received at the end of each of the next six years?
A)$ 6,300
B)$46,230
C)$49,928
D)$60,000
Q2) Is the internal rate of return of the investment equal to,higher than,or lower than 14%?
A)Equal to 14%
B)Higher than 14%
C)Lower than 14%
D)Cannot be determined from the given data
Q3) A project has an internal rate of return which is equal to the company's discount rate.The project's profitability index:
A)would be 0.0.
B)would be 0.5.
C)would be 1.0.
D)cannot be determined from information provided.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/69594
Sample Questions
Q1) The investing activities section of the statement of cash flows is the most important section.
A)True
B)False
Q2) The beginning and ending balances of long-term debt are $61,500 and $35,400,respectively,and cash payments for long-term debt during the year were $35,100.How much new long-term debt was issued during the year?
A)New long-term debt issued during the year was $9,000.
B)New long-term debt issued during the year was $300.
C)New long-term debt issued during the year was $26,100.
D)New long-term debt issued during the year was $61,200.
Q3) Money borrowed for a mortgage would be a(n)__________activity.
A)operating
B)investing
C)financing
D)non-cash
Q4) Investors and management use the statement of cash flows to evaluate a firm's profitability.
A)True
B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/69593
Sample Questions
Q1) Which of the following is the formula for computing earnings per share of common stock?
A)(Net income + interest expense)/ average total assets
B)Net income/net sales
C)(Net income - preferred dividends)/ number of shares of outstanding common stock
D)(Net income - preferred dividends)/ average common stockholders' equity
Q2) What should Johnston do to improve its performance to match or to exceed Haley's performance?
A)Reduce percentage of COGS.
B)Reduce percentage of income tax expense.
C)Reduce percentage of selling/general expenses.
D)Any of the above would be useful to improve performance.
Q3) What is the company's rate of return on net sales for the current year?
A)0.08
B)0.24
To view all questions and flashcards with answers, click on the resource link above. Page 16