D774 Elaborate Study Questions with Verified Answers Already Graded A+

D774 Elaborate Study Questions with Verified Answers Already Graded A+ 1. Resource allocation under zero-based budgeting - ANSWER The process of distributing funds based on current needs and justifications rather than historical spending. 2. Managerial decision-making - ANSWER The process of making choices regarding the management of a company's resources and operations. 3. Significant unfavorable materials variance - ANSWER A notable difference between budgeted and actual material costs that negatively impacts financial performance. 4. Investigate the cause of increased costs - ANSWER The action taken by management to understand the reasons behind a variance in material costs. 5. Sales figures for the last three years - ANSWER The recorded revenue amounts for each of the last three years, used for trend analysis. 6. Revenue-generating activity - ANSWER Any business operation that produces income, such as sales of products or services. 7. Percentage growth from year 1 to year 2 - ANSWER The increase in revenue expressed as a percentage, calculated from the difference between year 1 and year 2 revenues. 8. Manager A's performance - ANSWER The revenue growth achieved by Manager A from year 1 to year 2, used to evaluate effectiveness. 9. Tangible asset - ANSWER Physical assets that can be touched and measured, such as machinery or buildings. 10. Cash basis - ANSWER An accounting method where revenue and expenses are recorded when cash is actually received or paid. 11. Tax basis - ANSWER An accounting method that follows tax laws for reporting income and expenses. 12. Modified cash basis - ANSWER An accounting method that combines aspects of cash basis and accrual basis accounting. 13. Accrual basis - ANSWER An accounting method where revenue is recorded when earned and expenses are recorded when incurred, regardless of cash flow. 14. Net cash flows - ANSWER The difference between cash inflows and cash outflows over a period. 15. Financing activities - ANSWER Transactions that result in changes in the size and composition of the equity capital and borrowings of the entity. 16. Operating activities - ANSWER The primary revenue-generating activities of the business and other activities that are not investing or financing activities. 17. Which statement shows revenues â€" expenses = net income - ANSWER Income Statement 18. Which statement is a snapshot of assets, liabilities, and equity at a point in time - ANSWER Balance Sheet 19. What does the Retained Earnings Statement show - ANSWER Beg. RE + Net Income â€" Dividends = End RE 20. What are the three sections of the Statement of Cash Flows - ANSWER Operating, Investing, Financing 21. What is accrual accounting - ANSWER Recognizing revenues and expenses when earned/incurred, not when cash moves 22. What does the Revenue Recognition Principle say - ANSWER Record revenue when it is earned and realizable 23. What does the Matching Principle say - ANSWER Match expenses to the revenues they help generate 24. What is conservatism in accounting - ANSWER Recognize potential losses but not potential gains until realized 25. What is the fundamental accounting equation - ANSWER Assets = Liabilities + Equity 26. Which side of an account increases assets and expenses - ANSWER Debit (Dr) 27. Which side of an account increases liabilities, equity, and revenues - ANSWER Credit (Cr) 28. What is a ledger - ANSWER A collection of all accounts in the accounting system. 29. Administrative costs - ANSWER Expenses related to the general administration of a business. 30. Conversion costs - ANSWER Costs incurred to convert raw materials into finished goods, including direct labor and manufacturing overhead. 31. Manufacturing overhead costs - ANSWER Indirect costs associated with manufacturing that cannot be directly traced to specific products. 32. Prime costs - ANSWER The total of direct materials and direct labor costs. 33. Breakeven point in units - ANSWER The number of units that must be sold to cover total costs. 34. Contribution margin per unit - ANSWER The selling price per unit minus the variable cost per unit. 35. Relevant range - ANSWER The range of activity within which fixed costs remain constant despite changes in production volume.