Question 1

A manufacturing company reports cost of goods manufactured as a(n)

Accepted Answer

A)  current asset on the balance sheet.
B)  administrative expense on the income statement.
C)  component in the calculation of cost of goods sold on the income statement.
D)  component of the raw materials inventory on the balance sheet.E) None of the above
F) C) and D)

Question 2

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 3

For the work of factory employees to be considered as direct labor, the work must be conveniently and

Accepted Answer

A)  materially associated with raw materials conversion.
B)  periodically associated with raw materials conversion.
C)  physically associated with raw materials conversion.
D)  promptly associated with raw materials conversion.E) B) and C)
F) C) and D)

Question 4

Edmiston Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $780,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000.How much is Edmiston's cost of goods sold for the year?

Accepted Answer

A)  $780,000
B)  $790,000
C)  $770,000
D)  $800,000E) None of the above
F) A) and B)

Question 5

Internal reports must be communicated

Accepted Answer

A)  daily.
B)  monthly.
C)  annually.
D)  as needed.E) B) and D)
F) B) and C)

Question 6

Financial and managerial accounting are similar in that both

Accepted Answer

A)  have the same primary users.
B)  produce general-purpose reports.
C)  have reports that are prepared quarterly and annually.
D)  deal with the economic events of an enterprise.E) A) and D)
F) None of the above

Question 7

Financial statements for external users can be described as

Accepted Answer

A)  user-specific.
B)  general-purpose.
C)  special-purpose.
D)  managerial reports.E) None of the above
F) B) and C)

Question 8

Which of the following statements about internal reports is not true?

Accepted Answer

A)  The content of internal reports may extend beyond the double-entry accounting system.
B)  Internal reports may show all amounts at market values.
C)  Internal reports may discuss prospective events.
D)  Most internal reports are summarized rather than detailed.E) None of the above
F) B) and C)

Question 9

In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following is an example of a period cost?

Accepted Answer

A)  A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer
B)  Workers' compensation insurance on factory workers' wages allocated to the factory
C)  A box cost associated with computers
D)  A manager's salary for work that is done in the corporate head officeE) A) and D)
F) A) and B)

Question 11

Managerial accounting applies to each of the following types of businesses except

Accepted Answer

A)  service firms.
B)  merchandising firms.
C)  manufacturing firms.
D)  Managerial accounting applies to all types of firms.E) A) and B)
F) B) and D)

Exam 1: Introduction to Financial Statements

Which one of the following is an example of a period cost?

Correct Answer
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A manufacturing company reports cost of goods manufactured as a(n)

Correct Answer
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In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

Correct Answer
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Which of the following statements about internal reports is not true?

Correct Answer
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Financial statements for external users can be described as

Correct Answer
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Internal reports must be communicated

Correct Answer
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For the work of factory employees to be considered as direct labor, the work must be conveniently and

Correct Answer
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Correct Answer
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Financial and managerial accounting are similar in that both

Correct Answer
verified

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Correct Answer
verified

Managerial accounting applies to each of the following types of businesses except

Correct Answer
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Exam 1: Introduction to Financial Statements

Which one of the following is an example of a period cost?

Correct AnswerverifiedShow Answer

A manufacturing company reports cost of goods manufactured as a(n)

Correct AnswerverifiedShow Answer

In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

Correct AnswerverifiedShow Answer

Which of the following statements about internal reports is not true?

Correct AnswerverifiedShow Answer

Financial statements for external users can be described as

Correct AnswerverifiedShow Answer

Internal reports must be communicated

Correct AnswerverifiedShow Answer

For the work of factory employees to be considered as direct labor, the work must be conveniently and

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Financial and managerial accounting are similar in that both

Correct AnswerverifiedShow Answer

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Correct AnswerverifiedShow Answer

Managerial accounting applies to each of the following types of businesses except

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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