Course Introduction
Managerial Accounting Study Guide Questions
Managerial Accounting focuses on the internal use of accounting information by managers to plan, control, and make informed business decisions. This course covers cost behavior, budgeting, performance evaluation, and decision-making techniques, emphasizing the interpretation and application of accounting data for operational efficiency. Students will explore topics such as cost-volume-profit analysis, standard costing, variance analysis, and relevant costs for decision making. The course prepares students to analyze financial information critically and apply managerial accounting concepts in real-world business scenarios.
Recommended Textbook
Financial Accounting Information for Decisions 6th Edition by John Wild
Available Study Resources on Quizplus
16 Chapters
3236 Verified Questions
3236 Flashcards
Source URL: https://quizplus.com/study-set/3698
Page 2
Chapter 1: Introducing Accounting in Business
Available Study Resources on Quizplus for this Chatper
261 Verified Questions
261 Flashcards
Source URL: https://quizplus.com/quiz/73607
Sample Questions
Q1) Identify the three basic forms of business organizations.
Answer: The three basic forms of business organizations are sole proprietorships,partnerships and corporations.
Q2) A financial statement providing information that helps users understand a company's financial status and which lists the types and amounts of assets,liabilities and equity as of a specific date is called a(n):
A)Balance sheet
B)Income statement
C)Statement of cash flows
D)Statement of retained earnings
E)Financial status statement
Answer: A
Q3) Explain the role of accounting in the information age.
Answer: Accounting is an information and measurement system.It identifies,records and communicates relevant,reliable and comparable information about business activities.Accounting also includes the crucial process of analysis and interpretation.
Q4) ______________ is the area of accounting aimed at serving external users.
Answer: Financial accounting
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Analyzing and Recording Transactions
Available Study Resources on Quizplus for this Chatper
221 Verified Questions
221 Flashcards
Source URL: https://quizplus.com/quiz/73606
Sample Questions
Q1) On December 3,the Matador Company paid $5,400 cash in salaries to office personnel.Prepare the general journal entry to record this transaction.
Answer: \[\begin{array} { | l | l | l | l | }
\hline 12 / 3 & \text { Office Salaries Expense } & 5,400 & \\
\hline & \text { Cash } & & 5,400 \\ \hline \end{array}\]
Q2) Common Stock normally has a debit balance. A)True
B)False
Answer: False
Q3) Describe source documents and their purpose.
Answer: Source documents are the sources of information that identify and describe transactions and events.They provide objective and reliable evidence about transactions and their amounts.Examples of source documents include checks,invoices,sales receipts,credit card statements and bank statements.They can be in hard copy or electronic form.
Q4) Revenues and expenses are two categories of ____________________ accounts.
Answer: Equity
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Adjusting Accounts and Preparing Financial Statements
Available Study Resources on Quizplus for this Chatper
268 Verified Questions
268 Flashcards
Source URL: https://quizplus.com/quiz/73605
Sample Questions
Q1) An unadjusted trial balance is a listing of accounts and their balances prepared before adjustments are recorded.
A)True
B)False
Answer: True
Q2) Which of the following is true of accrued revenues:
A)At the end of one accounting period often result in cash receipts from customers in the next period
B)At the end of one accounting period often result in cash payments in the next period
C)Are also called unearned revenues
D)Are listed on the balance sheet as liabilities
E)Are recorded at the end of an accounting period because cash has already been received for revenues earned
Answer: A
Q3) The dividends account is normally closed by debiting it.
A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Reporting and Analyzing Merchandising Operations
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/73604
Sample Questions
Q1) A company had expenses other than cost of goods sold of $175,000.Determine sales and gross profit given cost of goods sold was $622,000 and net loss was ($41,000).
A)Sales: $838,000: Gross Profit: $216,000
B)Sales: $756,000: Gross Profit: $134,000
C)Sales: $797,000: Gross Profit: $756,000
D)Sales: $756,000: Gross Profit: $797,000
E)Sales: $134,000: Gross Profit: $216,000
Q2) The agreement regarding the amounts and timing of payment from a buyer to a seller are the ____________________.
Q3) How do closing entries for a merchandising company that uses the perpetual inventory system differ from the closing entries for a service company?
Q4) What is the acid-test ratio? How does it measure a company's liquidity?
Q5) The periodic inventory system requires updating the inventory account only at the end of the period to reflect the quantity and cost of both the goods available and the goods sold.
A)True B)False
Q6) Describe the key attributes of inventory for a merchandising company.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Reporting and Analyzing Inventories
Available Study Resources on Quizplus for this Chatper
202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/73603
Sample Questions
Q1) Which inventory valuation method assigns a value to the inventory on the balance sheet that approximates current cost and also mimics the actual flow of goods for most businesses?
A)FIFO
B)Weighted average
C)LIFO
D)Specific identification
E)First In Still Here
Q2) If damaged goods can be sold at a reduced price,they are included in inventory at their ________________________.
Q3) A company had inventory of 5 units at a cost of $20 each on November 1.On November 2,they purchased 10 units at $22 each.On November 6 they purchased 6 units at $25 each.On November 8,they sold 18 units for $54 each.Using the LIFO perpetual inventory method,what was the cost of the 18 units sold?
A)$395
B)$410
C)$450
D)$510
E)$520
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Reporting and Analyzing Cash and Internal Controls
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/73602
Sample Questions
Q1) ____________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.
Q2) Basic bank services such as bank accounts,bank deposits and checking contribute to the control and safeguarding of cash.
A)True
B)False
Q3) A company established a petty cash fund in May of the current year and experienced the following transactions affecting the fund during May:
May 1 Establish petty cash account in the amount of $300
May 5 Paid for miscellaneous office supplies in the amount of $53.22
May 9 Reimbursed Human Resource Manager for business lunch,$45.09
May 15 Paid for minor landscaping services,$75.00
May 22 Paid $65.00 for postage
May 31 Counted remaining cash and discovered that $56.34 remained The company decided to increase the petty cash balance to $450.Prepare the journal entry to increase the fund on May 31.
Q4) What is a voucher system?
Q5) List the main principles of internal controls.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Reporting and Analyzing Receivables
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/73601
Sample Questions
Q1) The formula for computing interest on a note is principal of the note times the annual interest rate times time expressed in years.
A)True
B)False
Q2) If a credit card sale is made,the seller can either debit Cash or debit Accounts receivable when the sale occurs.
A)True B)False
Q3) When a company holds a large number of notes receivable it sometimes sets up a controlling account and a subsidiary ledger for notes.
A)True
B)False
Q4) As long as a company accurately records total credit sales information,it is not necessary to have separate accounts for specific customers.
A)True B)False
Q5) Explain how to record the receipt of a note receivable.
Q6) What is the maturity date of a 6-month note receivable dated February 5?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Reporting and Analyzing Long-Term Assets
Available Study Resources on Quizplus for this Chatper
208 Verified Questions
208 Flashcards
Source URL: https://quizplus.com/quiz/73600
Sample Questions
Q1) Depreciation:
A)Measures the decline in market value of an asset
B)Measures physical deterioration of an asset
C)Is the process of allocating to expense the cost of a plant asset
D)Is an outflow of cash from the use of a plant asset
E)Is applied to land
Q2) Cobb Corn Company purchases a large lot on which a building is located.The negotiated purchase price is $2,500,000 for the lot and the building.The company pays $71,500 in commissions and taxes.The appraisal values of each items is as follows: Land
$650,000,Building $1,750,000,Land Improvements $120,000.What is the appropriate amount to be entered into the general journal for the building?
A) $1,750,000
B)$1,784,621
C)$1,735,000
D)$1,685,379
E)$1,730,000
Q3) _____________________ refers to the insufficient capacity of a company's plant asset to meet the company's productive demands.
Q4) _____________ are the federal income tax rules for depreciating assets.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Reporting and Analyzing Current Liabilities
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/73599
Sample Questions
Q1) Payroll taxes are considered to be contingent liabilities.
A)True
B)False
Q2) A note payable can be used to extend the payment due on an account payable.
A)True
B)False
Q3) A company can have a liability even if the amount of the obligation is unknown.
A)True
B)False
Q4) Amounts received in advance from customers for future products or services:
A)Are revenues
B)Increase income
C)Are liabilities
D)Are not allowed under GAAP
E)Require an outlay of cash in the future
Q5) A payroll register usually shows the pay period dates,hours worked,gross pay,deductions and net pay of each employee for every pay period. A)True
B)False
Q6) Vacation benefits are a type of _______________ liability.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Reporting and Analyzing Long-Term Liabilities
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/73598
Sample Questions
Q1) A basic present value concept is that cash in the future is worth less than the same amount of cash today.
A)True
B)False
Q2) A bond's par value is not necessarily the same as its market value.
A)True
B)False
Q3) Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are known as:
A)Convertible bonds
B)Sinking fund bonds
C)Callable bonds
D)Serial bonds
E)Junk bonds
Q4) On January 1,2010,Timley issues 2,200,000 of 6%,12-year bonds at a price of 105½ that pay interest semi-annually.The straight-line method is used to amortize any bond discount.What is the journal entry to record the issuance of the bonds on January 1,2010?
Q5) An _______________ is a series of equal payments at equal time intervals.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Reporting and Analyzing Equity
Available Study Resources on Quizplus for this Chatper
208 Verified Questions
208 Flashcards
Source URL: https://quizplus.com/quiz/73597
Sample Questions
Q1) What is a corporation? Identify the key advantages and disadvantages of corporations.
Q2) The annual amount of cash dividends distributed to common shareholders relative to the common stock's market value is the:
A)Dividend payout ratio
B)Dividend yield
C)Price-earnings ratio
D)Current yield
E)Earnings per share
Q3) Prior period adjustments are reported in the:
A)Income statement
B)Balance sheet
C)Statement of retained earnings
D)Statement of cash flows
E)Notes to the financial statements
Q4) Common stock always carries a preference for receiving dividends over preferred stock.
A)True
B)False
Q5) How is the retirement of stock recorded?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Reporting and Analyzing Cash Flows
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/73596
Sample Questions
Q1) Explain how the cash flows from operating activities section of the statement of cash flows is prepared when using the direct method.
Q2) Companies have the option of using either the direct or indirect method to prepare the operating section of the statement of cash flows.
A)True
B)False
Q3) A company's transactions with its creditors to borrow money and/or to repay the principal amounts of loans are reported as cash flows from:
A)Operating activities
B)Investing activities
C)Financing activities
D)Direct activities
E)Indirect activities
Q4) Information to prepare the statement of cash flows usually comes from (a)comparative balance sheets, (b)current income statement and (c)additional information.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Analyzing and Interpreting Financial Statements
Available Study Resources on Quizplus for this Chatper
186 Verified Questions
186 Flashcards
Source URL: https://quizplus.com/quiz/73595
Sample Questions
Q1) A company has a current ratio of 3.4,total liabilities of $350,240,and long-term notes payable of $120,000.What is the total of current assets for the company?
Q2) A company had a return on common stockholders' equity of 25%.Net income equaled $200,000 and average common stockholders' equity equaled $700,000.Compute the amount of the preferred dividends declared.
A)$200,000
B)$500,000
C)$50,000
D)$25,000
E)$175,000
Q3) The four building blocks of financial analysis are (1)____________________, (2)__________________________, (3)____________________ and (4)_____________________.
Q4) Describe ratio analysis including its purpose,application and interpretation.
Q5) The standards for comparisons in financial statement analysis include (1)_______________, (2)________________, (3)_________________ and (4)_______________.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Q6) The measurement of key relationships between financial statement items is known as _____________________________.
Chapter 14: Investments and International Operations
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/73610
Sample Questions
Q1) Investments in equity securities where the investor has a significant,but not controlling influence,are accounted for using the _______________ method.
Q2) Accounting for long-term investments in held-to-maturity securities requires companies to record interest revenue as it accrues.
A)True
B)False
Q3) Long-term investments in debt securities not classified as held-to-maturity securities are classified as available-for-sale securities.
A)True
B)False
Q4) Chrono Co.held bonds of Ayrford Co.with a cost of $125,000 and a year-end market value of $123,700.Chrono also held 1,500 shares of Avian common stock with a cost of $25,000 and a year-end market value of $26,100.These are classified as long-term available-for-sale securities.Prepare the journal entry to record the market value of the investments as of its December 31 year-end.
Q5) Identify the three types of classifications for non-influential investments in securities.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Reporting and Analyzing Partnerships
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/73609
Sample Questions
Q1) When a partner leaves a partnership,the present partnership ends,but the business can still continue to operate.
A)True
B)False
Q2) Partners' withdrawals are credited to their separate withdrawals accounts.
A)True
B)False
Q3) Web Services is organized as a limited partnership,with Wren Littlefeather as one of its partners.Wren's capital account began the year with a balance of $87,000.During the year,Wren's share of the partnership income was $60,000 and she received $25,000 in distributions from the partnership.What is Wren's partner return on equity?
A)57.42%
B)49.18%
C)68.97%
D)33.49%
E)40.23%
Q4) A partner can be admitted into a partnership by ________________________ or by ______________________________.
Q5) How are partners' investments in a partnership recorded?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Reporting and Preparing Special Journals
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/73608
Sample Questions
Q1) Under the perpetual inventory system,special journals are not required.
A)True
B)False
Q2) The sales journal is used for recording:
A)Credit purchases
B)Credit sales
C)Cash sales
D)Cash purchases
E)Cash receipts
Q3) Electronic files
A) Input devices
B) Information storage
C) Information processor
D) Output devices
E) Source document
Q4) ______________________ capture information from source documents and enable its transfer to the system's information processing component.
Q5) Individual transactions in the sales journal are posted regularly to customers' accounts in the ________________________________________.
To view all questions and flashcards with answers, click on the resource link above. Page 18