Acct 2200

Accounting for Managers: Sample First Exam Questions

1. Which of the following describes the primary objective of the balance sheet? 

A. To measure the net income of a business up to a particular point in time.

B. To report the difference between cash inflows and cash outflows for the period.

C. To report the financial position of the reporting entity at a particular point in time.

D. To report the market value of assets, liabilities and stockholders' equity at a particular point in time.

2. Which of the following is considered to be an expense on the income statement? 

A. Accounts payable

B. Notes payable

C. Wages payable

D. Cost of goods sold

3. Which of the following accounts would be reported as assets on the balance sheet? 

A. Cash, accounts payable, and notes payable.

B. Cash, retained earnings, and accounts receivable.

C. Cash, accounts receivable, and inventory.

D. Inventories, property and equipment, and contributed capital.

4. For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a: 

A. prime cost.

B. manufacturing overhead cost.

C. period cost.

D. differential (incremental) cost of a lamp.

5. The wages of factory maintenance personnel would usually be considered to be:

A. Option A

B. Option B

C. Option C

D. Option D

6. Conversion cost consists of which of the following? 

A. Manufacturing overhead cost.

B. Direct materials and direct labor cost.

C. Direct labor cost.

D. Direct labor and manufacturing overhead cost.

7. The gross margin percentage is most likely to be used to assess: 

A. how quickly accounts receivables can be collected.

B. how quickly inventories are sold.

C. the efficiency of administrative departments.

D. the overall profitability of the company's products.

8. The market price of XYZ Company's common stock dropped from $25 to $21 per share. The dividend paid per share remained unchanged. The...