MBA 5100- Exam 1 Questions with
complete solution 2025
Manufacturing business - correct answer ✔buys raw materials, uses labor
and machinery to transform them into finished products, and sells the finished
products to individuals or other businesses
Merchandising business - correct answer ✔buys finished products made by
other businesses and resells them to individuals or other businesses
Service business - correct answer ✔provides intangible services, rather than
tangible products
Manufacturing (cars and trucks) - correct answer ✔General Motors is what
type of business
Merchandising - correct answer ✔Walmart is what type of business
Service - correct answer ✔Delta Airlines is what type of business
Merchandise inventory - correct answer ✔On a merchandising firm's balance
sheet, what is included under current assets?
Inventories: raw materials, work in process, and finished goods - correct
answer ✔On a manufacturing firms balance sheet, what is included under
current assets?
Raw materials (manufacturers inventory accounts) - correct answer
✔Materials waiting to be processed
, Work in process (manufacturers inventory accounts) - correct answer
✔Materials partially completed or in the process of being completed
Finished goods (manufacturers inventory accounts) - correct answer
✔Completed products awaiting sale
Service revenues - cost of services sold - correct answer ✔Service firm's
gross margin equation
Cost of services sold: Service firm - correct answer ✔Cost of billable hours
Sales revenue - cost of goods sold - correct answer ✔Merchandising firm's
gross margin equation
Cost of goods sold: Merchandising firm - correct answer ✔Costs incurred to
purchase the goods sold
Sales revenue - cost of goods sold - correct answer ✔Manufacturing firm's
gross margin equation
Cost of goods sold: Manufacturing firm - correct answer ✔Costs incurred to
manufacture finished product
False - correct answer ✔True or False: Service companies have work-in
process and finished goods inventory, wherein costs are stored before being
transferred to cost of goods sold account
complete solution 2025
Manufacturing business - correct answer ✔buys raw materials, uses labor
and machinery to transform them into finished products, and sells the finished
products to individuals or other businesses
Merchandising business - correct answer ✔buys finished products made by
other businesses and resells them to individuals or other businesses
Service business - correct answer ✔provides intangible services, rather than
tangible products
Manufacturing (cars and trucks) - correct answer ✔General Motors is what
type of business
Merchandising - correct answer ✔Walmart is what type of business
Service - correct answer ✔Delta Airlines is what type of business
Merchandise inventory - correct answer ✔On a merchandising firm's balance
sheet, what is included under current assets?
Inventories: raw materials, work in process, and finished goods - correct
answer ✔On a manufacturing firms balance sheet, what is included under
current assets?
Raw materials (manufacturers inventory accounts) - correct answer
✔Materials waiting to be processed
, Work in process (manufacturers inventory accounts) - correct answer
✔Materials partially completed or in the process of being completed
Finished goods (manufacturers inventory accounts) - correct answer
✔Completed products awaiting sale
Service revenues - cost of services sold - correct answer ✔Service firm's
gross margin equation
Cost of services sold: Service firm - correct answer ✔Cost of billable hours
Sales revenue - cost of goods sold - correct answer ✔Merchandising firm's
gross margin equation
Cost of goods sold: Merchandising firm - correct answer ✔Costs incurred to
purchase the goods sold
Sales revenue - cost of goods sold - correct answer ✔Manufacturing firm's
gross margin equation
Cost of goods sold: Manufacturing firm - correct answer ✔Costs incurred to
manufacture finished product
False - correct answer ✔True or False: Service companies have work-in
process and finished goods inventory, wherein costs are stored before being
transferred to cost of goods sold account
