IVY SOFTWARE MBA PREPWORKS MANAGERIAL
ACCOUNTING EXAM 2024 NEWEST 2 VERSIONS
COMPLETE 300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+|| BRAND NEW!
If Elli Inc sells 20,000 units of x and 60,000 units of y, the composite unit consists
of .25x and .75y (T/F) - ANSWER: True. Adding 20,000 and 60,000 we get 80,000
units. Splitting this up into proportions we have 20,000/80,000=25%x and
60,000/80,000=75%y.
If the quantity sold is greater than the quantity produced there has to be: - ANSWER:
Finished goods beginning inventory. If you sell more than you produce, you must
obtain the units somewhere. You obtain them from the finished goods beginning
inventory.
Contribution margin and contribution margin per unit are the same. - ANSWER: False
Breakeven indicates that the sales dollars cover all fixed and variable costs of
manufacturing - ANSWER: True
Inventoriable costs using variable costing is appropriate for external reporting -
ANSWER: False
Essex company sells two products- A and B. Product A sales are two times that of
product B. The contribution per unit for A is $4 and B is $1. What is the weighted
average contribution margin per unit? - ANSWER: $3
Absorption costing clearly separates fixed costs from variable costs - ANSWER: false
Converse company has two products- A and B. The weighted average contribution
margin per unit is $4. Converse sells twice as many As as Bs. The contribution margin
per unit for B is $2. What is it for A? - ANSWER: $5
If the breakeven is 5000 units and fixed costs are $50,000, what is the contribution
margin per unit? - ANSWER: $10
Which of the following will be found on an absorption costing income statement but
not on a variable costing income statement? - ANSWER: Gross Margin and Cost of
Goods Sold
If units produced are less than units sold, net income using absorption costing is -
ANSWER: Less than variable costing
,If the selling price is $5 per unit the variable cost is $1 per unit and the fixed cost is
$20,000, what is the breakeven in units? - ANSWER: $5,000 (5x - 1x - 20000 = 0, 4x -
20,000=0, 4x=20000, x = 5000)
The total of ALL the right-hand sides of the T-accounts must equal the total of ALL
the left-hand sides of the T-Accounts (T/F) - ANSWER: True. The double-entry system
of accounting means that for each transaction recorded, there is a left-hand (debit)
entry offset by a right-hand (credit) entry.
Since the total of all the R sides of accounts equals the total of L sides, then the total
amount of increases entered in the general ledger must equal the total amount of
decreases (T/F) - ANSWER: False. Cash (Asset) and Common Stock (Owners' Equity) is
used to record the sale of company stock. While the R side equals the L side, they
both increase, thus, the total amount of increases does not equal the decreases.
Almost all the data necessary to prepare an income statement is contained in the
retained earnings account. - ANSWER: False. not Almost all. ALL.
A transaction is an event that affects the financial position of a company. - ANSWER:
True.
Credits are generally good and debits are generally bad. - ANSWER: False. credit
means nothing more than the R side while a debit means the L side. Neither is good
or bad.
Bookkeeping accounts are a method of accumulating financial transactions and
summarizing their effects on balance sheet items. - ANSWER: True. Bookkeeping
accounts provide an easy means for recording, collecting, and reporting financial
transactions of a firm.
Liabilities normally have a L balance - ANSWER: False. Liabilities and OE usually have
R balances while assets have L balances
It is possible to have the books in balance but with mistakes. - ANSWER: Having the
books in balance simply means that each time you entered a transaction you placed
equal amounts on the R and L sides. Books which balance do not rule out the
possibility that a transaction could have been posted to the wrong account.
The main purpose of the trial balance is to make sure you have not committed any
math errors in your T- Accounts (T/F) - ANSWER: True. The trial balance is taken as a
partial check of the arithmetic accuracy of the entries previously made.
Fixed costs are fixed per unit produced, but vary in total (true or false) - ANSWER:
False. Fixed costs vary by unit produced but are fixed in total. Remember the graph
with the straight line over all the units of production.
True or False: Variable costs are fixed per unit but vary in total. - ANSWER: True.
, Elmwood Inc. manufactures guitars. Elmwood's management has discovered that
after 3,000 guitars are manufactured, there is a need to add an additional quality
control engineer. If this is done it is an excellent example of a semi variable cost. -
ANSWER: False. This scenario indicates a semi fixed cost not a semi variable cost.
This is an example of a stepped fixed cost.
The "Flex" in flexible budget comes from the assumption of activity levels that vary. -
ANSWER: True.
Elmwood industries reported earnings of $3.10 per share in 2013. how far off could
this number be and still be in accordance with GAAP? In other words, could this
number be:
$3.40
$4.00
$2.15
D) $3.10 the number can't be off - ANSWER: $3.40. GAAP have leeway of
approximately 10%
Which of the following is most useful to management in exercising their control
function?
A) budget
B) Performance Report
C) Annual Report
D) Income Tax Report - ANSWER: Performance report.
Performance report is - ANSWER: shows the budgeted numbers, the actual numbers,
and the variance.
Annual report - ANSWER: published for external users of the financial statements
such as creditors and stockholders
In reviewing the balance sheet of an unknown company, which item would you look
for to determine whether or not the unknown company is a manufacturing
company?
Cash
Accounts receivable
Inventory
Accounts payable - ANSWER: Inventory
As the production level increases, the cost per unit decreases for a fixed cost (true or
false) - ANSWER: True. if the fixed cost is $100,000 and the units of production
increase from 0 to 10,000 units, you are dividing $100,000 by a larger number of
units. Since the numerator is fixed and the denominator gets larger the CPU
decreases.
In the long run, all fixed costs become variable (true or false) - ANSWER: true.
ACCOUNTING EXAM 2024 NEWEST 2 VERSIONS
COMPLETE 300 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED
A+|| BRAND NEW!
If Elli Inc sells 20,000 units of x and 60,000 units of y, the composite unit consists
of .25x and .75y (T/F) - ANSWER: True. Adding 20,000 and 60,000 we get 80,000
units. Splitting this up into proportions we have 20,000/80,000=25%x and
60,000/80,000=75%y.
If the quantity sold is greater than the quantity produced there has to be: - ANSWER:
Finished goods beginning inventory. If you sell more than you produce, you must
obtain the units somewhere. You obtain them from the finished goods beginning
inventory.
Contribution margin and contribution margin per unit are the same. - ANSWER: False
Breakeven indicates that the sales dollars cover all fixed and variable costs of
manufacturing - ANSWER: True
Inventoriable costs using variable costing is appropriate for external reporting -
ANSWER: False
Essex company sells two products- A and B. Product A sales are two times that of
product B. The contribution per unit for A is $4 and B is $1. What is the weighted
average contribution margin per unit? - ANSWER: $3
Absorption costing clearly separates fixed costs from variable costs - ANSWER: false
Converse company has two products- A and B. The weighted average contribution
margin per unit is $4. Converse sells twice as many As as Bs. The contribution margin
per unit for B is $2. What is it for A? - ANSWER: $5
If the breakeven is 5000 units and fixed costs are $50,000, what is the contribution
margin per unit? - ANSWER: $10
Which of the following will be found on an absorption costing income statement but
not on a variable costing income statement? - ANSWER: Gross Margin and Cost of
Goods Sold
If units produced are less than units sold, net income using absorption costing is -
ANSWER: Less than variable costing
,If the selling price is $5 per unit the variable cost is $1 per unit and the fixed cost is
$20,000, what is the breakeven in units? - ANSWER: $5,000 (5x - 1x - 20000 = 0, 4x -
20,000=0, 4x=20000, x = 5000)
The total of ALL the right-hand sides of the T-accounts must equal the total of ALL
the left-hand sides of the T-Accounts (T/F) - ANSWER: True. The double-entry system
of accounting means that for each transaction recorded, there is a left-hand (debit)
entry offset by a right-hand (credit) entry.
Since the total of all the R sides of accounts equals the total of L sides, then the total
amount of increases entered in the general ledger must equal the total amount of
decreases (T/F) - ANSWER: False. Cash (Asset) and Common Stock (Owners' Equity) is
used to record the sale of company stock. While the R side equals the L side, they
both increase, thus, the total amount of increases does not equal the decreases.
Almost all the data necessary to prepare an income statement is contained in the
retained earnings account. - ANSWER: False. not Almost all. ALL.
A transaction is an event that affects the financial position of a company. - ANSWER:
True.
Credits are generally good and debits are generally bad. - ANSWER: False. credit
means nothing more than the R side while a debit means the L side. Neither is good
or bad.
Bookkeeping accounts are a method of accumulating financial transactions and
summarizing their effects on balance sheet items. - ANSWER: True. Bookkeeping
accounts provide an easy means for recording, collecting, and reporting financial
transactions of a firm.
Liabilities normally have a L balance - ANSWER: False. Liabilities and OE usually have
R balances while assets have L balances
It is possible to have the books in balance but with mistakes. - ANSWER: Having the
books in balance simply means that each time you entered a transaction you placed
equal amounts on the R and L sides. Books which balance do not rule out the
possibility that a transaction could have been posted to the wrong account.
The main purpose of the trial balance is to make sure you have not committed any
math errors in your T- Accounts (T/F) - ANSWER: True. The trial balance is taken as a
partial check of the arithmetic accuracy of the entries previously made.
Fixed costs are fixed per unit produced, but vary in total (true or false) - ANSWER:
False. Fixed costs vary by unit produced but are fixed in total. Remember the graph
with the straight line over all the units of production.
True or False: Variable costs are fixed per unit but vary in total. - ANSWER: True.
, Elmwood Inc. manufactures guitars. Elmwood's management has discovered that
after 3,000 guitars are manufactured, there is a need to add an additional quality
control engineer. If this is done it is an excellent example of a semi variable cost. -
ANSWER: False. This scenario indicates a semi fixed cost not a semi variable cost.
This is an example of a stepped fixed cost.
The "Flex" in flexible budget comes from the assumption of activity levels that vary. -
ANSWER: True.
Elmwood industries reported earnings of $3.10 per share in 2013. how far off could
this number be and still be in accordance with GAAP? In other words, could this
number be:
$3.40
$4.00
$2.15
D) $3.10 the number can't be off - ANSWER: $3.40. GAAP have leeway of
approximately 10%
Which of the following is most useful to management in exercising their control
function?
A) budget
B) Performance Report
C) Annual Report
D) Income Tax Report - ANSWER: Performance report.
Performance report is - ANSWER: shows the budgeted numbers, the actual numbers,
and the variance.
Annual report - ANSWER: published for external users of the financial statements
such as creditors and stockholders
In reviewing the balance sheet of an unknown company, which item would you look
for to determine whether or not the unknown company is a manufacturing
company?
Cash
Accounts receivable
Inventory
Accounts payable - ANSWER: Inventory
As the production level increases, the cost per unit decreases for a fixed cost (true or
false) - ANSWER: True. if the fixed cost is $100,000 and the units of production
increase from 0 to 10,000 units, you are dividing $100,000 by a larger number of
units. Since the numerator is fixed and the denominator gets larger the CPU
decreases.
In the long run, all fixed costs become variable (true or false) - ANSWER: true.
