A100 Exam 1 Questions with Correct Answers 2026/2027

A100 Exam 1 Questions with Correct Answers
Managerial accounting
Detailed plans and continuous reports for internal decision makers
Financial accounting
Periodic financial statements and related disclosures for external decision makers
Single step income statement formula
Revenue - expenses = net income/loss
Multi step income statement formula
Sales
- costs of goods sold
= gross profit
- operating expenses
= net income/loss
Period costs
Outside the factory and not related to inventory - immediately expressed and
never apart of inventory
Variable costs
In total varies with volume but stays the same per unit
Fixed costs
In total stays the same but varies per unit
Behavior of total variable costs when production increases
Increases
Behavior of variable costs per unit when production increases
Stays the same