BUS-A 100 EXAM STUDY GUIDE
2026/2027 COMPLETE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Accounting - ANSWER ✔ Recording of business transactions, preparation
of summary reports, and analyzing financial information.
2. Financial statements - ANSWER ✔ Reports prepared from accounting
systems, prepared objectively and impartially.
3. Financial accounting - ANSWER ✔ Records an reports available publicly.
4. Financing activities - ANSWER ✔ Transactions that raise expendable funds
(equity and debt). Category associated with the Statement of Cash Flows.
5. Examples: Financing activities - ANSWER ✔ Borrowing or repaying loans,
issuing stock, paying dividends.
6. Investing activities - ANSWER ✔ Transactions that the company uses to
invest in assets that will be used in business operations. Category associated
with the Statement of Cash Flows.
,7. Examples: Investing activities - ANSWER ✔ Purchase and sale of
fixed/long-term assets.
8. Operating activities - ANSWER ✔ Unclassified transactions that are
involved in the daily functions of the business. Category associated with the
Statement of Cash Flows.
9. Examples: Operating activities - ANSWER ✔ Selling goods/services,
purchasing inventory, paying interest, paying suppliers and employees.
10.Equity - ANSWER ✔ Ownership claims over a business (equity
investors/stockholders/shareholders). Also a measure of the portion of a
company's assets that are owned outright.
11.The Big 4 Accounting Firms - ANSWER ✔ KPMG, Deloitte, Ernst &
Young(E&Y), PricewaterhouseCoopers(pwc)
12.GAAP - ANSWER ✔ Generally Accepted Accounting Principles, rules
based, made by the FASB.
13.FASB - ANSWER ✔ Financial Accounting Standards Board, responsible for
the GAAP.
14.IFRS - ANSWER ✔ International Financial Reporting Standards, principles
based, made by the IASB.
15.IASB - ANSWER ✔ International Accounting Standards Board, responsible
for the IFRS.
,16.Form 10K - ANSWER ✔ Annual audited form
17.Form 10Q - ANSWER ✔ Quarterly unaudited form
18.Accrual Accounting - ANSWER ✔ Recording revenue and expenses when
they are earned.
19.Which of the following are the inventory accounts for a manufacturing
company?
a. Raw materials, work in progress, finished goods
b. Direct materials, work in process, finished goods
c. Direct materials, direct labor, manufacturing overhead
d. Raw materials, work in process, cost of goods sold - ANSWER ✔ a.
Raw Materials, work in process, finished goods
20.Which of the following is true?
a. Cost of goods sold on the income statement includes the cost of all
inventory that has been purchased by that company
b. Inventory is recorded as an expense when it is purchased
c. Inventory becomes an expense on the day of sale
d. Inventory is an asset until the production process is completed, and it
becomes an expense at that time - ANSWER ✔ c. Inventory becomes
an expense on the day of sale
21.Which of the following is true of a manufacturing company?
a. Manufacturing overhead includes direct materials and direct labor
b. The costs that go into finished goods inventory include direct
materials, direct labor, and manufacturing overhead
c. There are three inventory accounts in a manufacturing company:
direct materials, direct labor, and finished goods
, d. Cost of goods sold for a manufacturing company includes all product
costs as well as selling and administrative costs - ANSWER ✔ b. The
costs that go into finished goods inventory include direct materials,
direct labor, and manufacturing overhead
22.Which of the following is correctly classified?
a. Selling expenses are expensed into cost of goods sold
b. Utility expense is always classified as a period cost
c. Manufacturing overhead is one of the three inventory accounts
d. All factory costs are always called product costs - ANSWER ✔ d. All
factory costs are always called product costs
23.If the selling price per unit increases, the break-even point in units will:
a. Increase
b. Decrease
c. Remain the Same
d. Change in the same percentage as the change in sales price -
ANSWER ✔ b. Decrease
24.Which of the following is true?
a. Changing the sales price per unit has no impact on the contribution
margin percentage of total sales
b. An increase in the total number of units sold increases the
contribution margin percentage
c. Fixed cost per unit decreases as the total sales increase
d. Variable cost per unit varies as the total sales vary - ANSWER ✔ c.
Fixed cost per unit decreases as the total sales increase
25.Which of the following is true of the contribution margin income statement?
a. The percentage of fixed costs to total sales remains constant
b. The total amount of variable costs remains constant
c. The breakeven point is the level of sales at which total sales equals
variable costs plus fixed costs
2026/2027 COMPLETE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Accounting - ANSWER ✔ Recording of business transactions, preparation
of summary reports, and analyzing financial information.
2. Financial statements - ANSWER ✔ Reports prepared from accounting
systems, prepared objectively and impartially.
3. Financial accounting - ANSWER ✔ Records an reports available publicly.
4. Financing activities - ANSWER ✔ Transactions that raise expendable funds
(equity and debt). Category associated with the Statement of Cash Flows.
5. Examples: Financing activities - ANSWER ✔ Borrowing or repaying loans,
issuing stock, paying dividends.
6. Investing activities - ANSWER ✔ Transactions that the company uses to
invest in assets that will be used in business operations. Category associated
with the Statement of Cash Flows.
,7. Examples: Investing activities - ANSWER ✔ Purchase and sale of
fixed/long-term assets.
8. Operating activities - ANSWER ✔ Unclassified transactions that are
involved in the daily functions of the business. Category associated with the
Statement of Cash Flows.
9. Examples: Operating activities - ANSWER ✔ Selling goods/services,
purchasing inventory, paying interest, paying suppliers and employees.
10.Equity - ANSWER ✔ Ownership claims over a business (equity
investors/stockholders/shareholders). Also a measure of the portion of a
company's assets that are owned outright.
11.The Big 4 Accounting Firms - ANSWER ✔ KPMG, Deloitte, Ernst &
Young(E&Y), PricewaterhouseCoopers(pwc)
12.GAAP - ANSWER ✔ Generally Accepted Accounting Principles, rules
based, made by the FASB.
13.FASB - ANSWER ✔ Financial Accounting Standards Board, responsible for
the GAAP.
14.IFRS - ANSWER ✔ International Financial Reporting Standards, principles
based, made by the IASB.
15.IASB - ANSWER ✔ International Accounting Standards Board, responsible
for the IFRS.
,16.Form 10K - ANSWER ✔ Annual audited form
17.Form 10Q - ANSWER ✔ Quarterly unaudited form
18.Accrual Accounting - ANSWER ✔ Recording revenue and expenses when
they are earned.
19.Which of the following are the inventory accounts for a manufacturing
company?
a. Raw materials, work in progress, finished goods
b. Direct materials, work in process, finished goods
c. Direct materials, direct labor, manufacturing overhead
d. Raw materials, work in process, cost of goods sold - ANSWER ✔ a.
Raw Materials, work in process, finished goods
20.Which of the following is true?
a. Cost of goods sold on the income statement includes the cost of all
inventory that has been purchased by that company
b. Inventory is recorded as an expense when it is purchased
c. Inventory becomes an expense on the day of sale
d. Inventory is an asset until the production process is completed, and it
becomes an expense at that time - ANSWER ✔ c. Inventory becomes
an expense on the day of sale
21.Which of the following is true of a manufacturing company?
a. Manufacturing overhead includes direct materials and direct labor
b. The costs that go into finished goods inventory include direct
materials, direct labor, and manufacturing overhead
c. There are three inventory accounts in a manufacturing company:
direct materials, direct labor, and finished goods
, d. Cost of goods sold for a manufacturing company includes all product
costs as well as selling and administrative costs - ANSWER ✔ b. The
costs that go into finished goods inventory include direct materials,
direct labor, and manufacturing overhead
22.Which of the following is correctly classified?
a. Selling expenses are expensed into cost of goods sold
b. Utility expense is always classified as a period cost
c. Manufacturing overhead is one of the three inventory accounts
d. All factory costs are always called product costs - ANSWER ✔ d. All
factory costs are always called product costs
23.If the selling price per unit increases, the break-even point in units will:
a. Increase
b. Decrease
c. Remain the Same
d. Change in the same percentage as the change in sales price -
ANSWER ✔ b. Decrease
24.Which of the following is true?
a. Changing the sales price per unit has no impact on the contribution
margin percentage of total sales
b. An increase in the total number of units sold increases the
contribution margin percentage
c. Fixed cost per unit decreases as the total sales increase
d. Variable cost per unit varies as the total sales vary - ANSWER ✔ c.
Fixed cost per unit decreases as the total sales increase
25.Which of the following is true of the contribution margin income statement?
a. The percentage of fixed costs to total sales remains constant
b. The total amount of variable costs remains constant
c. The breakeven point is the level of sales at which total sales equals
variable costs plus fixed costs
