Managerial Accounting Final Exam Questions
Course Introduction
Managerial Accounting is a course designed to equip students with the essential concepts and tools used by managers for internal decision-making, planning, and control within organizations. The course covers topics such as cost behavior analysis, budgeting, performance evaluation, variance analysis, and the use of accounting information in strategic planning. Emphasis is placed on interpreting and using financial data to support managerial objectives, improve operational efficiency, and enhance organizational effectiveness. Through case studies and practical exercises, students learn how to apply managerial accounting techniques to real-world business scenarios, fostering analytical and problem-solving skills necessary for effective management.
Recommended Textbook Financial Accounting 3rd Edition by Robert Kemp
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12 Chapters
1837 Verified Questions
1837 Flashcards
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Chapter 1: Business, Accounting, and You
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) James opens his business by investing $12,000.How does this affect the accounting equation?
A)Increase in Assets;increase in Stockholders' Equity.
B)Increase in Liabilities;increase in Stockholders' Equity.
C)Decrease in Assets;increase in Stockholders' Equity.
D)Increase in Assets;decrease in Stockholders' Equity.
Answer: A
Q2) A company has $63,000 in Assets and $14,000 of Stockholders' Equity.How much does the company have in Liabilities?
A)$14,000
B)$49,000
C)$77,000
D)Cannot be determined from the given information
Answer: B
Q3) Liabilities are obligations owed to third parties.
A)True
B)False
Answer: True
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3
Chapter 2: Analyzing and Recording Business Transactions
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146 Flashcards
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Sample Questions
Q1) Which of the following is NOT a liability?
A)Accounts Payable
B)Interest Payable
C)Rent Expense
D)All of the above are liabilities.
Answer: C
Q2) On the trial balance,which account balances should be listed in the debit column?
A)Assets,Revenues,and Dividends
B)Liabilities,Revenues,and Common Stock
C)Assets,Dividends,and Expenses
D)Liabilities,Revenues,and Dividends
Answer: C
Q3) Which of the following has a four column format?
A)Income statement
B)Balance sheet
C)General ledger sheet
D)General journal
Answer: C
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4
Chapter 3: Adjusting and Closing Entries
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Sample Questions
Q1) Assets,Liabilities and Retained Earnings are permanent accounts that are NOT closed at the end of the accounting period.
A)True
B)False
Answer: True
Q2) Which of the following accounts would NOT be adjusted?
A)Accumulated Depreciation
B)Cash
C)Depreciation Expense
D)Wages
Answer: B
Q3) The balance of Retained Earnings on the adjusted trial balance does not represent the final Retained Earnings balance on the Balance Sheet.
A)True
B)False
Answer: True
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Chapter 4: Accounting for a Merchandising Business
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Sample Questions
Q1) An invoice of $237.50 is dated April 2,terms 2/10,n/30.If the invoice is paid on April 9,the amount to be paid is:
A)$4.75.
B)$23.75.
C)$232.75.
D)$237.50.
Q2) When a merchandiser sells on account,which of the following accounts is NOT needed to record the transaction?
A)Cost of Goods Sold
B)Accounts Receivable
C)Inventory
D)Cash
Q3) Under the perpetual inventory system,the account to which purchased goods are recorded is:
A)Purchases as a credit.
B)Inventory as a debit.
C)Cost of Goods Sold as a debit.
D)Purchases as a debit.
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6
Chapter 5: Inventory
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Sample Questions
Q1) If Cost of Goods Sold was understated in Period 1,then Cost of Goods Sold and gross profit in Period 2 will be:
A)both understated.
B)both overstated.
C)understated for cost of goods sold and overstated for gross profit.
D)overstated for cost of goods sold and understated for gross profit.
Q2) A drawback to using ________ when inventory costs are rising is that the company reports lower net income.
A)LIFO
B)FIFO
C)average costing
D)specific-identification costing
Q3) The most popular inventory costing method is:
A)FIFO.
B)LIFO.
C)average cost.
D)specific identification.
Q4) When using the FIFO inventory method,the ending inventory has the newer costs.
A)True
B)False
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Chapter 6: The Challenges of Accounting: Standards, internal
Control, audits, fraud, and Ethics
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Sample Questions
Q1) IFRS is considered a principles-based system,while U.S.GAAP is considered a rules-based system.
A)True
B)False
Q2) Certified public accountants are licensed by the: A)state.
B)SEC.
C)the college or university from which they earned their accounting degree. D)AICPA.
Q3) For accounting information to be useful it must be all of the following EXCEPT: A)reliable.
B)understandable.
C)economical.
D)relevant.
Q4) The Sarbanes-Oxley Act only applies to publicly traded companies. A)True B)False
Q5) A business has great control over perceived pressure felt by an employee. A)True B)False
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Chapter 8: Long-Term and Other Assets
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Sample Questions
Q1) Which accounting principle dictates whether the cost of a repair should be expensed?
A)Conservatism
B)Entity
C)Objectivity
D)Matching
Q2) The total cost allocated to each item in a basket purchase is based upon:
A)the original cost of the items.
B)their relative market values.
C)their individual selling price.
D)their individual market values.
Q3) Properties whose physical substance consists of natural resources that are consumed in the operation of a business are called:
A)depreciable assets.
B)depletable assets.
C)amortizable assets.
D)intangible assets.
Q4) In general,companies don't report R&D costs as assets on their balance sheets.
A)True
B)False
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Chapter 9: Current Liabilities and Long-Term Debt
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Sample Questions
Q1) What is the purpose of a bond discount?
A)It raises the bond interest rate to the market interest rate at the time the bond was issued.
B)It decreases the bond interest rate to the market interest rate at the time the bond was issued.
C)It increases the periodic cash interest payments paid to those who purchased the bond.
D)It decreases the periodic cash interest payments paid to those who purchased the bond.
Q2) Payroll is also called employee compensation and can consist of many parts.
A)True
B)False
Q3) Both the formulas for current ratio and debt ratio use current liabilities in the computation.
A)True
B)False
Q4) Even liabilities of unknown amounts are required to be placed on the Balance Sheet.
A)True B)False
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Chapter 10: Corporations: Paid-In Capital and Retained Earnings
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Sample Questions
Q1) What are dividends in arrears?
A)The portion of Stockholders' Equity that cannot be used to pay dividends
B)A distribution of a corporation's own stock to its shareholders
C)The portion of an annual dividend on cumulative preferred stock which has not been paid
D)An increase in the number of outstanding shares of stock
Q2) Treasury stock decreases the number of outstanding shares of stock.
A)True
B)False
Q3) What is the return on equity if sales are $100,000,net income is $22,700 and average common Stockholders' Equity is $86,000?
A)22.7%
B)26.4%
C)86.0%
D)Cannot be determined from information given
Q4) The portion of Stockholders' Equity that can be used for dividends is referred to as legal capital.
A)True
B)False
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Chapter 11: The Statement of Cash Flows
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Sample Questions
Q1) Activities that increase and decrease as a result of selling a company's stock are:
A)marketing activities.
B)operating activities.
C)investing activities.
D)financing activities.
Q2) The formula for free cash flow is anticipated cash from operations minus cash payments for investments in long-term assets.
A)True
B)False
Q3) Losses on the sale of long-term assets are:
A)added to operating activities.
B)subtracted from operating activities.
C)added to investing activities.
D)subtracted from investing activities.
Q4) Operating Cash Flows affect:
A)current assets and current liabilities.
B)long-term asset accounts.
C)equity accounts.
D)long-term liability accounts.
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Chapter 12: Financial Statement Analysis
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Sample Questions
Q1) Evergreen Supply Co.sells hiking and other outdoor equipment.It also sells a few trail books and outdoor guides about the area.In their Income Statement,the revenue from the books and guides would probably be recorded as:
A)operating income.
B)other income.
C)other expenses.
D)extraordinary income.
Q2) Kroger would probably benchmark with other:
A)general merchandise retailers.
B)big box retailers.
C)grocery chains.
D)companies that sell food.
Q3) Illusions,Inc.has net sales of $980,000,net income of $72,000,average current assets of $42,000,average fixed assets of $168,000,and average total assets of $210,000.Illusions,Inc.'s return on assets is:
A)42.9%.
B)171.4%.
C)7)3%.
D)34.3%.
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