Managerial Accounting Test Questions
Course Introduction
Managerial Accounting provides students with an in-depth understanding of how accounting information is used by managers to plan, control, and make decisions within organizations. The course covers key concepts such as budgeting, cost behavior, cost-volume-profit analysis, performance evaluation, and relevant costing for decision-making. Emphasis is placed on the use of accounting data in strategic planning and operational control, preparation and interpretation of internal financial reports, and application of analytical techniques to solve managerial problems. By the end of the course, students will be equipped with the tools and skills necessary to support effective management and contribute to organizational success.
Recommended Textbook College Accounting A Practical Approach 12th Canadian Edition by Jeffrey Slater
Available Study Resources on Quizplus
25 Chapters
3155 Verified Questions
3155 Flashcards
Source URL: https://quizplus.com/study-set/3532 Page 2
Chapter 1: Accounting Concepts and Procedures
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70162
Sample Questions
Q1) Which of the following would result if the owner invested cash in the business?
A)Cash would increase and Capital would decrease.
B)Cash would increase and Capital would increase.
C)Cash would decrease and Capital would increase.
D)An investment by the owner is not a business transaction.
Answer: B
Q2) Which of the following would result if the business purchased supplies on credit?
A)Supplies would increase and Cash would decrease.
B)Supplies would increase and Capital would increase.
C)Supplies would increase and Accounts Payable would increase.
D)The purchase of supplies is not a business transaction.
Answer: C
Q3) An acceptable variation of the accounting equation is:
A)Assets - Liabilities = Owner's Equity.
B)Assets + Owner's Equity = Liabilities.
C)Assets = Liabilities - Owner's Equity.
D)All of these answers are correct.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Debits and Credits: Analyzing and Recording
Business Transactions
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70151
Sample Questions
Q1) Determine the beginning owner's equity of a business having an ending owner's equity of $3,500, additional investments of $600 withdrawals of $500, and net loss of $750.
$ ________
Answer: $4,150 [$3,500 - $600 + $500 + $750]
Q2) Which of the following accounts would be increased by a debit?
A)Cash
B)Accounts Payable
C)Capital
D)Fees Earned
Answer: A
Q3) A credit may signify a(n):
A)increase in assets.
B)decrease in liabilities.
C)increase in capital.
D)increase in withdrawals.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Beginning the Accounting Cycle
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70144
Sample Questions
Q1) Which of the following transactions would cause the trial balance to be out of balance?
A)A debit to Cash and a debit to Equipment for the same amount
B)A credit to Cash and a debit to Supplies for the same amount
C)A debit to Accounts Receivable and a credit to Accounting Fees for the same amount
D)All of these answers are correct.
Answer: A
Q2) Correctly posting a transaction twice will cause the trial balance totals to be unequal.
A)True
B)False
Answer: False
Q3) The informal listing of the ledger accounts and their balances in the ledger to aid in providing the equality of debits and credits is the:
A)journal.
B)ledger.
C)income statement.
D)trial balance.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: The Accounting Cycle Continued
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70143
Sample Questions
Q1) Logan's Snowboards estimated depreciation for office equipment at $250. The adjusting entry to record the depreciation would include:
A)a debit to Accumulated Depreciation for $250.
B)a credit to Depreciation Expense for $250.
C)a credit to Accumulated Depreciation for $250.
D)a credit to Office Equipment for $250.
Q2) Sarah's Spices' accrued wages are $1,800. Which of the following is the required adjusting entry?
A)Debit Salaries Expense, $1,800; credit Salaries Payable, $1,800
B)Credit Salaries Expense, $1,800; debit Salaries Payable, $1,800
C)Debit Cash, $1,800; credit Salaries Expense, $1,800
D)Debit Salaries Payable, $1,800; credit Cash, $1,800
Q3) Equipment was purchased for $20,000, residual value is $2,000 and it is expected that the useful life is 10 years. What is the amount in the Accumulated Depreciation account after 3 years assuming straight-line depreciation?
$ ________
Q4) The worksheet contains a trial balance.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: The Accounting Cycle Completed
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/70142
Sample Questions
Q1) Determine the ending owner's equity of a business having a beginning owner's equity of $4,200, withdrawals of $1,500, and after closing the revenues and expenses Income Summary has a credit balance of $4,750.
$ ________
Q2) Determine the beginning owner's equity of a business having an ending owner's equity of $6,200, withdrawals of $2,250, and after closing the revenues and expenses, the Income Summary account has a debit balance of $3,500.
$ ________
Q3) A nominal account is the same as a permanent account.
A)True
B)False
Q4) Depreciation Expense is closed to Income Summary, but Accumulated Depreciation is not closed.
A)True
B)False
Q5) The goal of closing is to clear all temporary accounts and update Capital.
A)True
B)False
Q6) What are the major goals of the closing process?
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Banking Procedure and Control of Cash
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70141
Sample Questions
Q1) A $50 petty cash fund has cash of $20 and valid receipts for $40. The entry to replenish the fund would include a:
A)credit to Cash for $30.
B)credit to Cash for $40.
C)credit to Petty Cash for $30.
D)debit to Petty Cash for $40.
Q2) A bank service charge would be included on the bank reconciliation as a(n):
A)addition to the balance per books.
B)subtraction from the balance per books.
C)addition to the balance per bank.
D)subtraction from the balance per bank.
Q3) The person or company to whom a check is payable is called the: A)payer. B)drawer.
C)drawee.
D)payee.
Q4) Any adjustment to the depositor's records because of an item on the bank statement requires a journal entry.
A)True
B)False
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Calculating Pay and Payroll Taxes: The
Beginning of the Payroll Process
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/70140
Sample Questions
Q1) Kate's earnings during the month of May were $1,200. Her earnings for the year prior to May were $12,300. Jake's employer is subject to state unemployment of 2.0% and federal unemployment taxes of 0.8% on the first $7,000. The employer's unemployment payroll tax expense for May is:
A)$10.40.
B)$26.00.
C)$0.
D)$36.40.
Q2) Regular earnings are equal to total earnings less deductions.
A)True
B)False
Q3) FUTA and SUTA are paid for exclusively by the employee. A)True
B)False
Q4) Companies can choose different pay periods for hourly workers versus salary workers.
A)True
B)False
Q6) What is the purpose of the Fair Labor Standards Act? Page 9
Q5) List the purposes of Federal Insurance Contributions Act.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 8: Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/70139
Sample Questions
Q1) The payroll tax expense is recorded at the same time the payroll is recorded.
A)True
B)False
Q2) The account for Payroll Tax Expense includes all of the following except:
A)federal unemployment taxes.
B)FICA taxes (OASDI and Medicare)paid by the employer for the latest payroll period.
C)state unemployment taxes.
D)federal income tax.
Q3) Both employer and employee contribute to FICA-OASDI and SUTA tax.
A)True
B)False
Q4) A banking day is any day that the bank is open to the public for business.
A)True
B)False
Q5) Compute the total federal income tax. ________
Q6) The form used to complete the annual federal unemployment report is Form 941.
A)True
B)False
Q7) Compute the net pay. ________
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Sales and Cash Receipts
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70138
Sample Questions
Q1) An example of a subsidiary ledger is the accounts receivable ledger.
A)True
B)False
Q2) Sue's Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the payment would include:
A)a credit to Cash for $625.00.
B)a credit to Cash for $662.50.
C)a credit to Accounts Receivable for $625.00.
D)a credit to Accounts Receivable for $662.50.
Q3) Urban Camping sold goods for $200 to a charge customer. The customer returned for credit $90 worth of goods. Which entry is required to record the return transaction?
A)Debit Sales Returns and Allowances $90; credit Accounts Receivable for $90
B)Debit Sales Returns and Allowances for $90; credit Sales for $90
C)Debit Sales $90; credit Sales Returns and Allowances $90
D)Debit Accounts Receivable $90; credit Sales Returns and Allowances for $90
Q4) Explain how the record keeping differs between a cash sale and a credit sale.
Q5) Compare and discuss a discount period versus a credit period.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Purchases and Cash Payments
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/70161
Sample Questions
Q1) Office Supplies (not used for resale)bought on account were returned for credit and recorded with a debit to Accounts Payable and a credit to Purchase Returns and Allowances. This error will cause:
A)net income to be overstated.
B)net income to be understated.
C)net income to not be affected.
D)total assets to be understated.
Q2) Which account is the controlling account for the amounts owed to individual creditors?
A)Accounts Payable in the general ledger
B)Accounts Receivable in the general ledger
C)Accounts Receivable in the subsidiary ledger
D)Accounts Payable in the subsidiary ledger
Q3) The Schedule of Accounts Payable is listed alphabetically.
A)True
B)False
Q4) A receiving report is used to notify the company of the quantity and condition of the goods received.
A)True
B)False
13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Preparing a Worksheet for a Merchandise Company
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70160
Sample Questions
Q1) If gross profit exceeds operating expenses, the company:
A)had a net loss.
B)broke even.
C)had a net income.
D)Not enough information given.
Q2) The adjustment for unearned rent is recorded when:
A)cash is received.
B)rent is earned.
C)revenue is received.
D)closing entries are prepared.
Q3) Which inventory appears in the balance sheet column of the worksheet?
A)Ending inventory
B)Beginning inventory
C)Combination of beginning and ending inventories
D)Inventory does not appear on the balance sheet.
Q4) The trial balance columns on the worksheet are populated using the:
A)general journal.
B)general ledger.
C)subsidiary ledger.
D)None of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Completion of the Accounting Cycle for a Merchandise Company
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70159
Sample Questions
Q1) The formal income statement can be prepared from the income statement columns of the worksheet.
A)True
B)False
Q2) The information to prepare the Statement of Owner's Equity comes from the:
A)income statement columns on the worksheet.
B)adjustments columns on the worksheet.
C)balance sheet columns on the worksheet.
D)general ledger.
Q3) The entry to close the Withdrawals account to Capital was omitted. This error would cause:
A)the Capital account to be understated.
B)net income to be overstated.
C)net income to be understated.
D)the Capital account to be overstated.
Q4) The post-closing trial balance is prepared from:
A)the income statement columns on the worksheet.
B)the balance sheet columns on the worksheet.
C)the trial balance columns on the worksheet.
D)the general ledger.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: Accounting for Bad Debts
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/70158
Sample Questions
Q1) Using the income statement approach, the balance in Allowance for Doubtful Accounts is ignored.
A)True
B)False
Q2) Reinstated an account previously written off under the allowance method.
Debit account ________ Credit account ________
Q3) If a recovery of a written-off account is made in the same year using the allowance method, the Bad Debts Recovered account would be used.
A)True
B)False
Q4) A company is not able to reasonably estimate its bad debts expense. The method it may use is:
A)net realizable value method.
B)direct write-off method.
C)aging method.
D)income statement method.
Q5) Increase the allowance for the estimated bad debts using the percentage of receivables.
Debit account ________ Credit account ________
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: Notes Receivable and Notes Payable
Available Study Resources on Quizplus for this Chatper
132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/70157
Sample Questions
Q1) The accounting department forgot to adjust for interest on the note payable. This error would cause:
A)the period end assets to be understated.
B)the period end liabilities to be understated.
C)the period's net income to be understated.
D)None of these answers are correct.
Q2) An adjustment that must be made for the interest on a note payable that is incurred during the period but not paid or recorded because payment is not due is called:
A)Notes Payable.
B)Accrued Interest Income.
C)Accrued Interest Expense.
D)Discount Payable Liability.
Q3) A promissory note received in granting a time extension to a charge customer. Debit ________ & ________ Credit ________ & ________
Q4) Accrued interest on a note payable would have which effect on the categories?
A)Total liabilities would be increased.
B)Total assets would be increased.
C)Owner's equity would be increased.
D)None of these answers are correct.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Accounting for Merchandise Inventory
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/70156
Sample Questions
Q1) In a periodic inventory system, Purchases, Freight, and Purchases Returns and Allowances accounts are not used.
A)True
B)False
Q2) In a perpetual inventory system, the Merchandise Inventory account is updated:
A)at the end of the accounting period.
B)once each month.
C)when merchandise is purchased.
D)The account never needs updating.
Q3) Chewy Candy has a beginning inventory of $1,000. June purchases were $3,000, and retail sales were $5,000. The store has a normal gross profit of 50%. What is the June 30 estimated ending inventory at cost under the gross profit method?
A)$2,100
B)$2,000
C)$1,700
D)$1,500
Q4) Items that are very similar, such as canned goods in a grocery store would be costed using the ________ system of inventory valuation.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Accounting for Property, Plant, Equipment, and Intangible Assets
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/70155
Sample Questions
Q1) Assets that are not expected to provide benefits for a number of accounting periods are called:
A)current assets.
B)fixed assets.
C)long-term assets.
D)property, plant, and equipment.
Q2) The entry to record the disposal of a laptop computer with a cost of $2,500 and an accumulated depreciation of $1,500 would be:
A)debit Depreciation Expense, $2,500; credit Equipment $2,500.
B)debit Accumulated Depreciation $1,500; debit Loss on Disposal of an Asset $1,000; credit Equipment $2,500.
C)debit Equipment $2,500; credit Accumulated Depreciation $2,500.
D)debit Cash $2,500; credit Equipment $2,500.
Q3) Prepare journal entries for the following for Bartz, Inc.
May 11 Replaced the engine in a Van #1, paying cash of $5,400.
May 18 Paid cash for a tune-up of the engine in Van #2 of $570.
May 29 Paid cash to add a lift to Van #2 of $3,700
Q4) Two depreciation methods that ignore the salvage value are ________ and
19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Partnership
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/70154
Sample Questions
Q1) Partners are required to report their share of earnings on their personal tax return.
A)True
B)False
Q2) A profit and loss ratio may not be based on capital contributions.
A)True
B)False
Q3) The last step in a partnership liquidation is to divide any remaining proceeds between and among the partners.
A)True
B)False
Q4) Which method of allocation of profits and losses is based on a percent of initial investment of the partners?
A)Salary allowance
B)Salary expense
C)Profit and loss ratio
D)Interest allowance
Q5) Discuss (a)the purpose of the articles of partnership, and (b)indicate the items that should be included.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: Corporations: Organizations and Stock
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/70153
Sample Questions
Q1) Which of the following would normally not appear in the Stockholders' Equity section of the balance sheet?
A)Cash
B)Paid-in Capital
C)Common Stock
D)Preferred Stock
Q2) Characteristics of a corporation include:
A)stockholders having unlimited liability.
B)direct management by the stockholders.
C)stockholders having limited liability.
D)choosing a board of directors.
Q3) A share of stock may be sold at any given time according to the stock's:
A)stated value.
B)book value.
C)market value.
D)par value.
Q4) Purchased machinery for cash.
Debit ________ & ________ & ________ Credit ________ & ________ &
Q5) List and discuss the (a)advantages and (b)disadvantages of the corporation form of business.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 19: Corporations: Stock Values, Dividends, Treasury
Stocks, and Retained Earnings
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/70152
Sample Questions
Q1) If treasury stock is re-issued at a price less than its cost, the debit entry could include:
A)paid-in capital in excess of par, treasury.
B)retained earnings.
C)treasury stock.
D)both A and B.
Q2) The payment of a cash dividend was recorded as payment to Miscellaneous Expense. This error would cause:
A)the period end assets to be overstated.
B)the period end liabilities to be overstated.
C)the period end stockholders' equity to be overstated.
D)the period's net income to be overstated.
Q3) Treasury stock should usually be recorded at:
A)par or stated value.
B)cost.
C)original issue price.
D)net realizable value.
Q4) Paid a cash dividend.
Chapter 20: Corporations and Bonds Payable
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/70150
Sample Questions
Q1) The real or actual rate of interest to the borrowing corporation is called the:
A)market rate of interest.
B)effective rate of interest.
C)discount rate of interest.
D)premium rate of interest.
Q2) Usually, there is a gain or loss associated with early retirement of bonds.
A)True
B)False
Q3) A bond is issued for an amount equal to its face value. Which of the following statements most likely would explain why?
A)The bond's contract rate is lower than the market rate at the time of the issue.
B)The bond's contract rate is the same as the market rate at the time of the issue.
C)The bond's contract rate is higher than the market rate at the time of the issue.
D)The bond is secured by specific assets of the corporation.
Q4) Recorded the interest earned on the bond sinking fund.
Q5) The formal written agreement for issuing bonds is called a(n)________.
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 21: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/70149
Sample Questions
Q1) Rick Corporation's Accounts Receivable decreased by $25,000 during the year. What is the adjustment to the cash flow statement when it is prepared by the indirect method?
A)Subtract the decrease from the net income in operating activities.
B)Add the decrease to the net income in operating activities.
C)Add the decrease in the investing activities section.
D)Subtract the decrease in the financing activities.
Q2) Fidelity Furniture's Net Income was $25,000. Other accounts that changed included: Accounts Receivable decreased by $18,000; Merchandise Inventory increased by $7,000; Accounts Payable increased by $4,000; and Salaries Payable decreased by $3,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:
A)$57,000.
B)$43,000.
C)$37,000.
D)$15,000.
Q3) The purpose of a cash flow statement is to show the inflows and outflows of cash.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 22: Analyzing Financial Statements
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/70148
Sample Questions
Q1) If management wishes to determine the average degree of delinquency of the charge customers, they could use the:
A)rate of return on total assets.
B)rate of return on common stockholders' equity.
C)accounts receivable turnover.
D)quick (acid test)ratio.
Q2) The revenue of Carol's Environmental Services for Years 1, 2, and 3 are $40,000, $60,000 and $80,000, respectively. Year 1 is the base year. The trend percentage for Year 2 is:
A)50%.
B)150%.
C)200%.
D)133%.
Q3) If the average collection period is 35 days, this means:
A)from the date of purchase to the date of payment is 35 days.
B)from the date of sale to the date of receipt of payment is 35 days.
C)from the date of discount to the date of receipt of payment is 35 days.
D)None of these answers are correct.
Q4) Define two types of comparative income statements and compare the information provided by them.
Page 25
To view all questions and flashcards with answers, click on the resource link above.
Chapter 23: The Voucher System
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/70147
Sample Questions
Q1) When a voucher transaction does not fit in the special columns of the voucher register, it will be recorded in the:
A)general journal.
B)sundry column.
C)vouchers payable credit column.
D)both B and C.
Q2) In a voucher system, a schedule of vouchers payable is essentially the same as a schedule of accounts payable.
A)True
B)False
Q3) Paid voucher #422, payment was within the discount period.
Debit ________ & ________ & ________ Credit ________ & ________ &
Q4) Each entry in a voucher register includes a:
A)debit to Cash.
B)credit to Vouchers Payable.
C)debit to Purchases Discounts.
D)debit to Vouchers Payable.
Q5) After paying a voucher, the voucher document is marked paid.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 24: Departmental Accounting
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/70146
Sample Questions
Q1) Which of the following would not be considered a direct expense?
A)Building expenses
B)Advertising expense
C)Administrative expense
D)All of the above
Q2) A profit center and a cost center both generate revenue.
A)True
B)False
Q3) Explain the difference between a "cost center" and a "profit center."
Q4) A building's depreciation would be considered an indirect expense.
A)True
B)False
Q5) Supporters of the contribution margin approach believe that:
A)indirect expenses should be departmentalized.
B)indirect expenses should not be used for evaluating departmental performance.
C)indirect expenses are proportionally charged to each department.
D)direct expenses should not be used in evaluating departmental performance.
Q6) A cost center is evaluated on the volume of revenues generated.
A)True
B)False
Page 27
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Manufacturing Accounting
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/70145
Sample Questions
Q1) Finished goods ending inventory was overstated. This error will cause:
A)the cost of goods manufactured to be overstated.
B)the cost of goods sold to be overstated.
C)the net income to be overstated.
D)All of these are correct.
Q2) The estimated manufacturing overhead cost was $20,000 and estimated machine hours were 10,000. Actual manufacturing overhead cost was $22,000 and actual machine hours were 12,000. The overhead application rate per hour based on machine hours is:
A)$1.83.
B)$2.00.
C)$4.00.
D)$5.00.
Q3) Omega.com sold 25 jet skis for $7,000 which cost $5,000. The entry to record the sale would include:
A)credit to Finished Goods Inventory $5,000.
B)credit to Sales for $7,000.
C)debit to Cost of Goods Sold for $5,000.
D)all of the above.
Q4) Describe the three elements of manufacturing cost.
Page 28
To view all questions and flashcards with answers, click on the resource link above.